Field Underwriting Procedures

Question 1

Elements of a contract

Answer 1

1. Agreement-offer and acceptance
2. Consideration
3. Competent parties
4. Legal Purpose

Question 2

Made by applicant when when the application is submitted

Answer 2

Offer

Question 3

Takes place when an underwriter employed by the insurer approves the application and issues a policy

Answer 3

Acceptance

Question 4

To ensure legal purpose, a contract must have

Answer 4

Insurable interest and consent

Question 5

Proven by love and affection, economic or financial loss

Answer 5

Insurable interest

Question 6

A statement that if discovered could alter the underwriting decision of an insurance company

Answer 6

Material misrepresentation

Question 7

Source of information best for accurate information on applicants medical history. Has what applicant was treated for, treatment required,length of treatment and recovery, and also prognosis

Answer 7

Attending Physicians Report

Question 8

Membership corporation owned by member insurance companies. Used as aid to see what areas of impairment, or high risk areas, to investigate further. But an applicant cannot be refused based on adverse information.

Answer 8

Medical Information Bureau (MIB)

Question 9

Established procedures that consumer-reporting agencies must follow to ensure records are confidential, accurate, relevant, and properly used

Answer 9

Fair Credit Reporting Act

Question 10

These include written or oral information regarding a consumer’s credit, character, reputation, or habits collected by reporting agency from employment records, credit reports

Answer 10

Consumer report

Question 11

Primary difference between consumer reports and investigative consumer reports is

Answer 11

The information is obtained through investigative interviews with associates, friends, and neighbors of the consumer

Question 12

Investigative consumer reports CANNOT be made UNLESS

Answer 12

Consumer is advised in writing within 3 days of the date the report was requested

Question 13

The consumer has the right to request additional information about the report. If so, the insurer has ___ days to give consumer additional information

Answer 13

5

Question 14

In cases where premium was not collected with application the agent must

Answer 14

Collect the premium and obtain a statement of good health before releasing the policy

Question 15

Health insurance coverage does not begin until

Answer 15

Insurer has approved the application and issued the policy

Question 16

When replacing coverages, the agent must make sure the current policy

Answer 16

Stays in place and is not cancelled before the new policy is issued