IIAP TRAD (62-92 questions)

62. Anti-selection occurs

• When you purchase bad stocks with expectation that they will improve

• When an agent thinks only of his own interest and not of his policyowners

• When persons in poor health wish to buy insurance

• When the insurance company accepts more than a share of poor risks

63. In insurance, risk means

• Hazard on people’s lives

• Chances of you being paid by the company

• None of the above

• Chances of the beneficiary being paid

64. In an application, the information that must be disclosed include

• Only the information he wants the agent to know

• Every fact in his knowledge that is material to the insurance

• Only his family history

• Only his date and place of birth

65. Insurance companies have various sources of information and the insured. These are

• Medical information bureau

• Inspection report

• Application form

• All of the above

66. In insurance risks are classified as

• Complete and incomplete

• Standard, substandard and declined

• Regular and irregular

• Unacceptable and acceptable

67. A risk is considered substandard based on any or all of the following criteria

• Death income and educational background

• Death, occupation and moral character

• Occupation, moral character and family heath history

• Income, educational attainment and occupation

68. A hazardous occupation could be defined

• An occupation in an unhealthy working condition exposing the insured to elements which can cause sickness

• All of the above

• An occupation which exposes the insured to social hazards

• An occupation the duties of which expose the insured to a degree of danger of sustaining injury

69. Statement in the application forms are

• Warranties

• Guarantees

• None of the above

• Representation

70. Mr. Roel Reyes has been confined in a hospital for 3 years prior to his application for insurance. He therefore needs to give the following information

• The bill and medicines

• Date of confinement only

• Name of doctor only

• Name of attending doctor, diagnosis, date of confinement

71. Insurance companies have a source of confidential medical information on applicants for life insurance. This is the

• Medical impairment bureau

• Agents confidential report bureau

• Financial standing bureau

• Inspection reports bureau