III. Accident and Health Insurance Basics Flashcards
Define accidental bodily injury.
an unforeseen and unintended injury that resulted from an accident rather than a sickness
In what ways can accidental death and dismemberment coverage be written?
written as a rider or as a separate policy.
Under Accidental Death and Dismemberment Coverage, when would the capital amount be paid? When would the principal amount be paid?
Capital sum, a percentage of the principal sum, is paid in the case of loss of sight or accidental dismemberment
Principal sum is paid for accidental death.
How are dread disease policies different from other types of policies?
provides a variety of benefits for a specific disease such as cancer or heart disease.
What is the basic purpose of field underwriting for health insurance?
minimize problem of adverse selection.
Who is the field underwriter?
the agent
How does an application for insurance begin?
with a form provided by the company and completed by the agent, as questions are asked of the applicant, and the applicant’s responses are recorded.
Which risk classification typically qualifies for lower premiums?
Preferred risks
How does a substandard risk policy differ from a standard risk?
Polices could be issued at higher premium rates.
How might an insurance company offer a substandard health policy?
an applicant could be rated substandard for a poor health history or a dangerous vocation or avocation.
