PSI Life Exam Practice Test

Which item is typically NOT considered a source of underwriting information?

1. Application form

2. Medical history

3. Disclosure authorization response

4. Financial statements

The correct answer is: Disclosure authorization response

The correct answer identifies the disclosure authorization response as typically not being a direct source of underwriting information. Underwriting involves assessing the risk of insuring an applicant, and the primary sources of information generally include the application form, medical history, and financial statements. The application form provides essential personal details and outlines the applicant's request for insurance. The medical history gives insights into the applicant's health status, which is critical for evaluating potential health-related risks. Financial statements offer a view into the applicant's financial situation, helping underwriters to determine their ability to pay premiums and the risk associated with insuring them. In contrast, while a disclosure authorization response can provide consent to access certain information, it itself does not serve as a source of information. Instead, it allows underwriters to obtain further data from external sources, such as medical records or other relevant documentation. Thus, while it is a necessary part of the underwriting process, it is not considered a source of underwriting information in the same way the other items are.