9.2c

Question 1

If a _______ is declined, but the insurer counter-offers with a substandard risk offer, the applicant will not be covered for any loss incurred before the acceptance of the new offer and, if required, the submission of ______.

Answer 1

standard risk application

any increased premium associated with the substandard risk offer provided by the insurer.

Question 2

A ______, also referred to as a ‘binder,’ guarantees temporary coverage at the time of application for a specified benefit amount regardless of whether the insurer later approves or declines the applicant. A binding receipt is a type of Temporary Insurance Agreement. Even if the insurer later declines the applicant, any claims made during the temporary term must be paid by the insurer. Although it has been utilized in the past, most life insurers typically issue a conditional receipt, while binding receipts are more common with ______.

Answer 2

binding receipt

property and auto insurance contracts

Question 3

When applying for life insurance, a medical report is often required by an underwriter to approve an applicant. In addition to this report, applicants are sometimes required to obtain a ______ to provide additional support for proof of insurability.

Answer 3

Attending Physician’s Statement (APS)

Question 4

Due to the nature of risk, insurance companies evaluate applicants according to their ______. Race car drivers, high rise workers, miners, and extreme sport enthusiasts are naturally higher risk for an insurance company than an office worker or teacher.

Answer 4

lifestyle which often includes questions about an applicant’s hobbies, finances and occupation

Question 5

Many high-risk occupations and hobbies are simply ______, or require special insurance, often provided through the occupation’s respective industry. Some insurance companies also increase the rate of motorcyclists due to the increased risk versus driving a car.

Answer 5

not insurable