Chap4

Question 1

W/Fair crediting reporting act
When Producer must notify an applicant that credit report may be requested

Time of application
Initial interview
When policy delivered

Answer 1

Time of application

Question 2

What term used for applicants written request to insurer for company to issue contract based on info provided

Request for ins
App
Policy request
Ins request form

Answer 2

Application

Question 3

Policy and policy application and added riders form is

Blanket policy
Entire contract
Certificate of coverage
contract of adhesion

Answer 3

Entire contract

Question 4

On health ins application signature required from all individuals except

Proposed insured
Policyowner
Agent
Spouse of policyowner

Answer 4

Spouse

Question 5

Term used for applicants written request for company to issue contract based on info provided

Request for ins
Application
Policy request
Ins request form

Answer 5

Application

Question 6

Best way to change application

Answer 6

Start over with Fresh application

Question 7

Which can legally bind coverage
Insured
Federal ins bond
Agent
Insurer

Answer 7

Insurer

Question 8

Applicant for health insurance policy returns completed application to agent with check for first premium. Gets conditional receipt two weeks later. Which has been done by insurer

Approved app
Issued policy
NEither approved nor issued
Both approved and issued

Answer 8

Neither approved nor issued

Conditional rec= not yet approved app and issued policy

Question 9

Agent ready to deliver policy but hasn’t received payment. Upon delivery agent collects premium check answers questions and leaves

What did he forget

Ask her to sign good health statement
Offer a secondary policy
Sign statement that acknowledges that policy has been delivered
Collect late fee

Answer 9

Sign statement of good health

Acknowledging insureds health has not changed since policy approved

Question 10

WHO responsibility to determine all questions on app answered

Answer 10

Agent

Question 11

Insurer attempting to determine insurability of applicant and obtains medical information from several sources … which entity mst be notified of investigation

State department of insurance
Medical examiner
Applicant

Answer 11

Applicant

Question 12

True regarding obtaining underwriting sources

Applicant must be informed of sources contacted and how information being gathered

Illegal to obtain info outside sources to determine insurability

Insurer does not need to inform applicant of how information is gathered

Answer 12

Applicant must be informed of sources contacted and how Info gathered

Question 13

Who pays for cost of medical exam in process of underwriting

Insurer
Applicant
Underwriters
Department of ins

Answer 13

Insurer

Question 14

Document describes medical history including diagnoses and treatments

Physicians review
Individuals medical summary
Attending physicians statement

Answer 14

Attending physicians statement

Question 15

True about hiv exams

Must give prior informed written consent
Results may be disclosed to agent and underwriter
HIV exams may not be used as basis for underwriting

Answer 15

Must give prior informed written consent

Question 16

Under privacy rule for hipaa protected info includes all individually identifiable health info

Held or transmitted in any form
Electronic only
Held in computer format

Answer 16

Held or transmitter in any form

Question 17

If no copy of new policy to applicant who is responsible

Insurer
Agent
Applicant

Answer 17

Agent

Question 18

Agent makes mistake on application and corrects mistake by entering necessary info
Who must initial

Answer 18

Applicant

Question 19

When delivering policy which is agents responsibility

Collect medical statement from physician
Collect payment at time of delivery
Approve or decline risk

Answer 19

Collect payment

Question 20

In replacement situation all must be considered except

Benefits
Limitations
Exclusions
Assets

Answer 20

Assets

Question 21

Underwriting is major consideration when insured wants to replace current policy for following reasons except

Premium always stays the same
Due to age health or policy may change dramatically
Benefits may change
Pre existing conditions that were previously covered may not be covered under replacing policy

Answer 21

Premiums always stay the same

Question 22

Before agent delivers policy insurer makes last minute change .. agent informs insured .. accepts. Agent must

Have insured sign statement acknowledging he is aware of change
Notify policy beneficiary
have insured sign statement of acknowledgement only if change affects premium amount
Deliver without further confirmation

Answer 22

Have insured sign statement acknowledging he is aware of change

Question 23

Agent replacing insureds current policy with new one… which would be proper option

Old policy must be canceled befor new can be issued
Old policy should stay in force until new policy issued
Policies should overlap to cover preexisting conditions

Answer 23

Old policy should stay in force until new policy is issued

Question 24

Agreement offer acceptance
Elements of legal contract
Elements of asset exchange
Elements of liquidation sale

Answer 24

Elements of legal contract

Question 25

Of legal age sound mental capacity not under influence

Competent parties
Substance Abusing parties
Incompetent parties
Consideration partied

Answer 25

Competent parties
Elements of legal contract

Question 26

Not against public policy

Legal purpose
Contract purpose
Agent purpose
Insurer purpose

Answer 26

Legal purpose
elements of legal contract

Question 27

One party prepares contract other party must accept as is

Answer 27

Adhesion

Question 28

Exchange of unequal amounts

Answer 28

Aleatory
Contract characteristics

Question 29

Certain conditions must be met

Answer 29

Conditional
Contract characteristics

Question 30

Only one of parties to contract legally binding

Answer 30

Unilateral
Contract characteristics