Chapter 5 - Field Underwriting Procedures Introduction Flashcards
1
Q
What are the four required elements of an insurance contract?
A
- Agreement
- Consideration
- Competent parties
- Legal purpose
2
Q
Warranty vs representation
A
Warranty - absolutely true
Representation - true to the best of one’s knowledge
3
Q
What are the two types of perils associated with accident and health insurance policies?
A
- Sickness
- Accidental injury
4
Q
What are the six common exclusions for health insurance?
A
- War or military
- Self-inflicted injury
- Elective cosmetic
- Conditions covered by worker’s comp
- Conditions covered by Gov plans (e.g. medicaid, medicare)
- Participation in criminal activities
5
Q
What information are the members of the Medical Information Bureau required to report?
A
Adverse medical information about the applicants or insured
6
Q
Who must sign a health insurance application?
A
The policyowner, the insured (if different), and the agent
7
Q
Who can legally bind coverage?
A
The insurer
