Arizona Life and Health Practice Exam

What can field underwriting by a producer help disclose?

1. The applicant's job history

2. The hazardous activities of the applicant

3. The applicant's family medical history

4. The applicant's financial status

The correct answer is: The hazardous activities of the applicant

Field underwriting conducted by a producer is a crucial step in the insurance application process that allows for a comprehensive evaluation of the applicant's risk profile. This process involves gathering information in a personal and interactive manner, as the producer interacts directly with the applicant. The correct focus on hazardous activities is particularly important because many insurance policies, especially life and health policies, assess risk based on what an applicant does in their daily life. This can include exposure to dangerous hobbies, such as skydiving or rock climbing, or jobs that involve significant risk, like firefighting or commercial fishing. The producer can observe and inquire about these activities, enabling them to better assess the potential risks the applicant presents. While the other aspects, such as job history, family medical history, and financial status, can also be important in different contexts, they are not typically the primary focus or strength of field underwriting. Job history may provide insights into risk but doesn't capture immediate hazardous activities. Family medical history is more often reflected in medical records rather than through field assessment. Financial status, while relevant to certain types of insurance, is usually evaluated through financial documents or credit reports rather than direct observation. Thus, the correct answer highlights the unique ability of producers to uncover specific risk factors associated with hazardous activities