ALU 101 QUESTIONS AND ANSWERS SET A+
✔✔List five factors that underwriters should consider when evaluating foreign residence
and travel. - ✔✔Refer to page 275.
✔✔Describe five positive and five negative risk factors that affect foreign travel
underwriting. - ✔✔Refer to pages 283-284.
✔✔Prolonged airplane travel increases the risk of:
1. asthma
2. pulmonary embolism
3. dementia
4. food poisoning - ✔✔2: pulmonary embolism - page 277.
✔✔Favorable factors in underwriting applications involving foreign travel include all of
the following EXCEPT:
1. only major urban areas are visited during travel
2. travel is not immediate
3. the purpose of the travel is for vacation
4. trips are of a long duration - ✔✔4: trips are of a long duration - pages 283-284.
✔✔What are the difficulties associated with obtaining medical records from a foreign
country? - ✔✔Refer to page 286.
✔✔Describe the difference between foreign residence and foreign travel, and how the
destination plays into an underwriting action. - ✔✔Refer to page 283.
✔✔Describe risks that can be associated with living abroad. - ✔✔Refer to pages 277-
280.
✔✔The National Association of Insurance Commissioners (NAIC) works to promote
uniformity in state regulation through the development of:
1. audit guidelines
, 2. model laws
3. white papers
4. surplus requirements - ✔✔2: model laws - page 310.
✔✔In the U.S., a Health Insurance Portability and Accountability Act (HIPAA)
authorization must include all of the following EXCEPT:
1. an expiration date
2. the purpose of disclosure
3. the plan of insurance
4. the signature of the proposed insured - ✔✔3: the plan of insurance - page 315.
✔✔In the U.S., which of the following statements regarding life insurance regulation
is/are correct?
a) Each state has its own insurance commissioner.
b) Approval from the federal insurance department is required prior to selling a life
insurance product.
c) Variation by state is common.
1. A only is correct.
2. A and C only are correct.
3. B and C only are correct.
4. A, B, and C are correct. - ✔✔2: A and C only are correct - page 310.
✔✔Compare and contrast guaranty associations and Assuris. - ✔✔Refer to pages 310-
311.
✔✔Explain the importance of the MIB in fraud protection and how that benefits the
consumer. - ✔✔Refer to page 321.
✔✔Information reported to the MIB includes which of the following?
a) aviation activities
b) medical conditions
c) underwriting decision
1. A and B only are correct
2. A and C only are correct
3. B and C only are correct
4. A, B, and C are correct - ✔✔1: A and B only are correct - page 323.
✔✔In Canada, the organization responsible for supervising the financial condition of all
life insurance companies is the:
1. National Association of Insurance Commissioners (NAIC)
2. Office of the Superintendent of Financial Institutions (OSFI)
3. Canadian Standards Association (CSA)
✔✔List five factors that underwriters should consider when evaluating foreign residence
and travel. - ✔✔Refer to page 275.
✔✔Describe five positive and five negative risk factors that affect foreign travel
underwriting. - ✔✔Refer to pages 283-284.
✔✔Prolonged airplane travel increases the risk of:
1. asthma
2. pulmonary embolism
3. dementia
4. food poisoning - ✔✔2: pulmonary embolism - page 277.
✔✔Favorable factors in underwriting applications involving foreign travel include all of
the following EXCEPT:
1. only major urban areas are visited during travel
2. travel is not immediate
3. the purpose of the travel is for vacation
4. trips are of a long duration - ✔✔4: trips are of a long duration - pages 283-284.
✔✔What are the difficulties associated with obtaining medical records from a foreign
country? - ✔✔Refer to page 286.
✔✔Describe the difference between foreign residence and foreign travel, and how the
destination plays into an underwriting action. - ✔✔Refer to page 283.
✔✔Describe risks that can be associated with living abroad. - ✔✔Refer to pages 277-
280.
✔✔The National Association of Insurance Commissioners (NAIC) works to promote
uniformity in state regulation through the development of:
1. audit guidelines
, 2. model laws
3. white papers
4. surplus requirements - ✔✔2: model laws - page 310.
✔✔In the U.S., a Health Insurance Portability and Accountability Act (HIPAA)
authorization must include all of the following EXCEPT:
1. an expiration date
2. the purpose of disclosure
3. the plan of insurance
4. the signature of the proposed insured - ✔✔3: the plan of insurance - page 315.
✔✔In the U.S., which of the following statements regarding life insurance regulation
is/are correct?
a) Each state has its own insurance commissioner.
b) Approval from the federal insurance department is required prior to selling a life
insurance product.
c) Variation by state is common.
1. A only is correct.
2. A and C only are correct.
3. B and C only are correct.
4. A, B, and C are correct. - ✔✔2: A and C only are correct - page 310.
✔✔Compare and contrast guaranty associations and Assuris. - ✔✔Refer to pages 310-
311.
✔✔Explain the importance of the MIB in fraud protection and how that benefits the
consumer. - ✔✔Refer to page 321.
✔✔Information reported to the MIB includes which of the following?
a) aviation activities
b) medical conditions
c) underwriting decision
1. A and B only are correct
2. A and C only are correct
3. B and C only are correct
4. A, B, and C are correct - ✔✔1: A and B only are correct - page 323.
✔✔In Canada, the organization responsible for supervising the financial condition of all
life insurance companies is the:
1. National Association of Insurance Commissioners (NAIC)
2. Office of the Superintendent of Financial Institutions (OSFI)
3. Canadian Standards Association (CSA)
