Life Insurance Basics
When may an insurer disclose an applicant's personal information without a specific authorization?
Answer and explanation
Answer: A. Disclosure is permitted where it is necessary to conduct the business, such as underwriting, claims handling, reinsurance or a legally compelled disclosure. A declination, a competitor's interest and prior publication do not by themselves open the file.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, disclosure without authorization
More life insurance basics questions
- An advertisement describes a life policy chiefly as a savings and investment plan. Why is that a problem?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- An applicant believes the personal information an insurer holds is inaccurate. What recourse is provided?
- An applicant pays the premium with the application and receives a conditional receipt, then dies before the policy is issued. What governs the claim?
- An applicant presents better than average health and habits. Into which class is she ordinarily placed?
- An estate consists chiefly of illiquid farmland facing settlement costs. Why is life insurance suited to conserving it?
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