Completing the Application, Underwriting, Delivering Policies, Contract Law
If an MIB report indicates a medical impairment that was not disclosed on the application, what action must the underwriter take under MIB rules?
Answer and explanation
Answer: D. MIB rules prohibit insurers from declining coverage or rating an applicant based solely on an MIB report; independent verification is required.Source: NAIC Underwriting Guide — MIB Rules for Adverse Action
More completing the application, underwriting, delivering policies, contract law questions
- When a corporation is the proposed policyowner, what should identify the person signing for it?
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
- When an applicant submits a completed application WITH initial premium, what legal act does the applicant perform in contract law?
- When must an insurable interest exist in life insurance contracts under Texas law?
- Which applicant statement is best characterized as a representation?
- Which arrangement most closely describes stranger-originated life insurance?
590 Texas questions like this one.
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