XCEL Ch. 10 Keywords Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Adverse Selection the tendency of a disproportionate number
of poor
risks to seek or buy insurance or maintain
existing
insurance in force.
Age Change the date halfway between birthdays when
the
applicant's age changes to the next higher
age.
With some insurers, the age is based upon
the
applicant's age at his nearest birthday. In
others, it
is based upon the age of his last birthday.
Agent's report (agent's statement) the agent records personal observations
about the
proposed insured. A confidential way for
the agent
to provide relevant underwriting
information to the
insurance carrier
,Applicant the person completing the application to
the
insurance company for the insurance
policy. In
most cases, the applicant is also the
proposed
insured, but this is not always the case.
Application the statement of information given when a
person
applies for insurance.
Attending Physician's Statement requested when underwriters need
(APS) additional
detail regarding a medical condition
revealed on
an application
Avocation hobbies or non-occupational activities
Backdating The practice of making a policy effective at
an
earlier date than the present.
, Binding Receipt (Unconditional It is one of the types of receipts given by
Receipt) an
insurance company upon the completion of
an
insurance application if the initial premium
is
collected with the application. Insurance
becomes
effective on the receipt date and continues
for a
specified period of time or until the insurer
declines the application.
Buyer's Guide a pamphlet that describes and compares
various
forms of life or health insurance. The guide
must be
provided to a consumer by the producer
when the
latter is attempting to solicit insurance.
Claims Experience An insured's history of claims or rate of
loss. The
greater the claims experience, the higher
the
required premium.
Community Rating Based on their overall claim experience
and
healthcare costs in a geographical area
Answers with Verified Solutions | Latest
Updated 2026
Adverse Selection the tendency of a disproportionate number
of poor
risks to seek or buy insurance or maintain
existing
insurance in force.
Age Change the date halfway between birthdays when
the
applicant's age changes to the next higher
age.
With some insurers, the age is based upon
the
applicant's age at his nearest birthday. In
others, it
is based upon the age of his last birthday.
Agent's report (agent's statement) the agent records personal observations
about the
proposed insured. A confidential way for
the agent
to provide relevant underwriting
information to the
insurance carrier
,Applicant the person completing the application to
the
insurance company for the insurance
policy. In
most cases, the applicant is also the
proposed
insured, but this is not always the case.
Application the statement of information given when a
person
applies for insurance.
Attending Physician's Statement requested when underwriters need
(APS) additional
detail regarding a medical condition
revealed on
an application
Avocation hobbies or non-occupational activities
Backdating The practice of making a policy effective at
an
earlier date than the present.
, Binding Receipt (Unconditional It is one of the types of receipts given by
Receipt) an
insurance company upon the completion of
an
insurance application if the initial premium
is
collected with the application. Insurance
becomes
effective on the receipt date and continues
for a
specified period of time or until the insurer
declines the application.
Buyer's Guide a pamphlet that describes and compares
various
forms of life or health insurance. The guide
must be
provided to a consumer by the producer
when the
latter is attempting to solicit insurance.
Claims Experience An insured's history of claims or rate of
loss. The
greater the claims experience, the higher
the
required premium.
Community Rating Based on their overall claim experience
and
healthcare costs in a geographical area
