Chap4 Flashcards
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
Time of application
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
Application
Policy and policy application and added riders form is
Blanket policy
Entire contract
Certificate of coverage
contract of adhesion
Entire contract
On health ins application signature required from all individuals except
Proposed insured
Policyowner
Agent
Spouse of policyowner
Spouse
Term used for applicants written request for company to issue contract based on info provided
Request for ins
Application
Policy request
Ins request form
Application
Best way to change application
Start over with Fresh application
Which can legally bind coverage
Insured
Federal ins bond
Agent
Insurer
Insurer
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
Neither approved nor issued
Conditional rec= not yet approved app and issued policy
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
Sign statement of good health
Acknowledging insureds health has not changed since policy approved
WHO responsibility to determine all questions on app answered
Agent
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
Applicant
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
Applicant must be informed of sources contacted and how Info gathered
Who pays for cost of medical exam in process of underwriting
Insurer
Applicant
Underwriters
Department of ins
Insurer
Document describes medical history including diagnoses and treatments
Physicians review
Individuals medical summary
Attending physicians statement
Attending physicians statement
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
Must give prior informed written consent
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
Held or transmitter in any form
If no copy of new policy to applicant who is responsible
Insurer
Agent
Applicant
Agent
Agent makes mistake on application and corrects mistake by entering necessary info
Who must initial
Applicant
When delivering policy which is agents responsibility
Collect medical statement from physician
Collect payment at time of delivery
Approve or decline risk
Collect payment
In replacement situation all must be considered except
Benefits
Limitations
Exclusions
Assets
Assets
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
Premiums always stay the same
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
Have insured sign statement acknowledging he is aware of change
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
Old policy should stay in force until new policy is issued
Agreement offer acceptance
Elements of legal contract
Elements of asset exchange
Elements of liquidation sale
Elements of legal contract
Of legal age sound mental capacity not under influence
Competent parties
Substance Abusing parties
Incompetent parties
Consideration partied
Competent parties
Elements of legal contract
Not against public policy
Legal purpose
Contract purpose
Agent purpose
Insurer purpose
Legal purpose
elements of legal contract
One party prepares contract other party must accept as is
Adhesion
Exchange of unequal amounts
Aleatory
Contract characteristics
Certain conditions must be met
Conditional
Contract characteristics
Only one of parties to contract legally binding
Unilateral
Contract characteristics
