71. A risk is considered substandard based on any or all of the following criteria
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a. death, occupation and moral character
b. occupation, moral character and family health history
c. income, educational attainment and occupation
d. death, income and educational background
72. A hazardous occupation could be defined
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a. an occupation wherein the duties of which expose the insured to a degree of danger of sustaining injury
b. an occupation in an unhealthy working condition exposing the insured to elements which can cause sickness
c. an occupation which exposes the insured to social hazards
d. all of the above
73. Statements in the application forms are
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a. guarantees
b. representations
c. warranties
d. none of the above
74. An agent is filling up the Agent’s Confidential Report. What information must he put in his report?
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a. information about insured’s standing in the community
b. information about insured’s finances
c. all information he knows which are material to the application for insurance
d. a & b only
75. Mr. Roel Reyes has been confined in a hospital 3 years prior to his application for insurance. He, therefore, needs to give the following information
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a. name of attending doctor, diagnosis, date of confinement
b. the bill and medicines
c. name of doctor only
d. date of confinement only
76. Insurance companies have a source of confidential medical information on applicants for life insurance. This is the
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a. agents confidential report bureau
b. inspection reports bureau
c. financial standing bureau
d. medical impairment bureau
77. Insurance companies which are owned by the policyowners are examples of
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a. stock companies
b. mutual companies
c. family corporation
d. open-end companies
78. Stock companies are owned by
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a. policyowners
b. stockholders
c. creditors
d. government
79. Which one of the following statements is correct?
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a. advertising by life insurance agents is prohibited
b. all information about a client or a prospective client has to be treated as confidential
c. the agents should always recommend the amount and type of policy to a prospective client which would be profitable for the company
d. when an agent advertises his services in the press, he is not allowed to state the name of his company
80. Choose the incorrect statement The entire contract between the policyowner and the insurance company include:
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a. the application and the policy
b. any verbal statement made by the agent to the application
c. any document attached to the policy when issued
d. any subsequent written amendments to the contract