Chap4 Flashcards

1
Q

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

A

Time of application

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2
Q

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

A

Application

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3
Q

Policy and policy application and added riders form is

Blanket policy
Entire contract
Certificate of coverage
contract of adhesion

A

Entire contract

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4
Q

On health ins application signature required from all individuals except

Proposed insured
Policyowner
Agent
Spouse of policyowner

A

Spouse

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5
Q

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

Request for ins
Application
Policy request
Ins request form

A

Application

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6
Q

Best way to change application

A

Start over with Fresh application

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7
Q

Which can legally bind coverage
Insured
Federal ins bond
Agent
Insurer

A

Insurer

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8
Q

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

A

Neither approved nor issued

Conditional rec= not yet approved app and issued policy

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9
Q

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

A

Sign statement of good health

Acknowledging insureds health has not changed since policy approved

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10
Q

WHO responsibility to determine all questions on app answered

A

Agent

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11
Q

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

A

Applicant

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12
Q

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

A

Applicant must be informed of sources contacted and how Info gathered

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13
Q

Who pays for cost of medical exam in process of underwriting

Insurer
Applicant
Underwriters
Department of ins

A

Insurer

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14
Q

Document describes medical history including diagnoses and treatments

Physicians review
Individuals medical summary
Attending physicians statement

A

Attending physicians statement

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15
Q

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

A

Must give prior informed written consent

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16
Q

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

A

Held or transmitter in any form

17
Q

If no copy of new policy to applicant who is responsible

Insurer
Agent
Applicant

A

Agent

18
Q

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

A

Applicant

19
Q

When delivering policy which is agents responsibility

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

A

Collect payment

20
Q

In replacement situation all must be considered except

Benefits
Limitations
Exclusions
Assets

A

Assets

21
Q

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

A

Premiums always stay the same

22
Q

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

A

Have insured sign statement acknowledging he is aware of change

23
Q

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

A

Old policy should stay in force until new policy is issued

24
Q

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

A

Elements of legal contract

25
Q

Of legal age sound mental capacity not under influence

Competent parties
Substance Abusing parties
Incompetent parties
Consideration partied

A

Competent parties
Elements of legal contract

26
Q

Not against public policy

Legal purpose
Contract purpose
Agent purpose
Insurer purpose

A

Legal purpose
elements of legal contract

27
Q

One party prepares contract other party must accept as is

A

Adhesion

28
Q

Exchange of unequal amounts

A

Aleatory
Contract characteristics

29
Q

Certain conditions must be met

A

Conditional
Contract characteristics

30
Q

Only one of parties to contract legally binding

A

Unilateral
Contract characteristics