Question

An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is TRUE?

A) The applicant has the right to refuse the use of an investigative consumer report.
B) The applicant will be charged an additional fee for the investigative consumer report.
C) The applicant's medical history is not relevant in this case.
D) The applicant must disclose any criminal convictions on the report.

Answer 1

The correct statement is D) The applicant must disclose any criminal convictions on the report.

Step-by-step explanation:

The correct statement is D) The applicant must disclose any criminal convictions on the report.

When an investigative consumer report is used in the underwriting process of a life insurance application, the applicant is required to disclose any criminal convictions. This is because the insurance company wants to assess the applicant's level of risk and determine if there are any concerns regarding their criminal history.

For example, if the applicant has a history of fraud or other financially-motivated crimes, the insurance company may view them as a higher risk and adjust the terms of the policy accordingly.