health part

Question 1

what is not an essential part of the insurance contract

Answer 1

counteroffer

Question 2

what do insurance contracts need to be legally binding?

Answer 2

agreement (offer and acceptance), consideration, competent parties, and legal purpose

Question 3

when an insurer and insured enter into a contract, the insured must be what?

Answer 3

legal age and mentally competent

Question 4

when is an insurance offer usually made?

Answer 4

when the completed application is submitted

Question 5

what is consideration?

Answer 5

something of value that is transferred between the two parties to form a legal contract

Question 6

examples of consideration in a policy

Answer 6

1. something of value exchanged between parties
2. the premium amount paid at the time of application
3. the promise to pay covered losses

Question 7

when an insured makes truthful statements oh the application for insurance and pays the required primum is known as what?

Answer 7

consideration

Question 8

in forming an insurance contract. When does acceptance usually occur?

Answer 8

when an insurers underwriter approves coverage

Question 9

A life insurance policy has a legal purpose if both of which of the following elements exist?

Answer 9

insurable interest and consent

Question 10

what is an insurable interest?

Answer 10

the applicant must experience a financial loss when the insured is hurt or sick. Insurable interest is only needed by the applicant and only at the time of the applicant

Question 11

an insurance policy is a legal contract and it must conform to the state laws governing contracts which don’t require…..

Answer 11

conditions

Question 12

A misrepresentation would be considered fraud on an insurance application if….

Answer 12

if it is intentional and material

Question 13

what is a material of misrepresentation?

Answer 13

a statement, if discovered, would alter the underwriting decision of the insurance company

Question 14

what are representations?

Answer 14

written or oral statements made by the applicants that are considered true to the best of the applicants knowledge

Question 15

what is a warranty?

Answer 15

a statement that is guaranteed to be true and if untrue may breach an insurance contract.

Question 16

A contract is conditional when…

Answer 16

the contract is formed on the basis that certain conditions are met

Question 17

what happens in a unitlateral contract?

Answer 17

the insured is not legally bound to do anything. The insurer, however must pay losses covered by the policy

Question 18

What is a contract on adhesion

Answer 18

prepared by the insurer; the insureds only option is to accept or reject the policy as it is written

Question 19

what is a unilateral contract?

Answer 19

one sided: only one of the parties makes an enforceable promise

Question 20

what is an aleatory contract?

Answer 20

requires a small amount of premium for a large risk

Question 21

what is an application

Answer 21

an applicants written request to an insurer for the company to issue a contract, based on the information provided

Question 22

what does the MIB (Medical Information Bureau) provide?

Answer 22

information about an applicants medical history

Question 23

What is the Feral Fair Cedit Reporting Act?

Answer 23

regulates consumer reports, also known as consumer investigative reports, or credit reports

Question 24

Who makes up the MIB?

Answer 24

insurers, so they can compare with other companies on the info they have collected on a potential insured with info other insureds have discovered

Question 25

What does the HIV consent form provide?

Answer 25

the insurance company with the authorization to test for the presence of the HIV virus and applies to all health and life policies.

Question 26

is underwriting permitted for HIV and AIDS clients?

Answer 26

yes, as long as it is not unfairly discrimatory.

Question 27

Can medical coverage be denied for HIV clients?

Answer 27

no, it cannot be denied per recent health care reform (no exclusions for preexsisting conditions)

Question 28

What are the requirements for HIV exams?

Answer 28

the applicant must give prior informed written consent.

Question 29

Who are the HIV exam results disclosed to?

Answer 29

the underwriter, not the agents

Question 30

What is the purpose of the Federal Fair Credit Reporting Act?

Answer 30

protect consumers against circulation of inaccurate or obsolete information and to ensure that consumer reporting agencies are fair and equitable in their treatment of consumers