Life Insurance Basics
Which factor may an insurer properly use in classifying a life insurance risk?
Answer and explanation
Answer: C. Underwriting may distinguish on factors that bear on mortality and are supported by sound actuarial evidence, such as age, health, occupation, avocations and tobacco use. Race and national origin are impermissible classifications whatever the data are said to show.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, selection criteria
More life insurance basics questions
- An adverse underwriting decision rests on an HIV related test result. What does section 2611 require of the insurer?
- 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?
621 New York questions like this one.
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