Medical Underwriting & Limits Of Authority Flashcards
When does the duty of disclosure usually cease?
Upon completion of the contract.
What is a non-medical limit?
Proposals to be considered without a medical report automatically being required.
If a life insured wishes to see their medical report, how long must the doctor keep the report before sending it to the life office?
21 days
Roughly what proportion of proposals are accepted at ordinary rates?
About 76%
What is underwriting?
Assessing the proposal and deciding whether to accept the risk and if so at what premium
What types of medical factors will the underwriter look for on a life insurance proposal?
Factors affecting longevity
What is an exclusion?
When a proposal is accepted at ordinary rates but death from the extra risk is excluded
What is rating up?
Treating a life as X years older than the actual age and charging the premium for the rated up age.
If the life office requires a proposer to undergo a medical examination who pays for this?
The life office
Specify 5 occupations with above average risk of death by accident
Scaffholders, steeplejacks, steel erectors, trawlermen, underground miners, divers, oil rig workers, bomb disposal workers, professional boxers and handlers of radioactive materials.
What is tele-underwriting?
When an underwriter phones an applicant to ask them medical or other questions
What is tele-underwriting?
When an underwriter phones an applicant to ask them medical or other questions
How is a minor defined in England and Wales and in Scotland?
England and Wales under 18, Scotland under 16.
If a contract is made with a person with a mental health condition, in what circumstances can that contract not be repudiated?
If the other party was not aware they had a medical condition
Who can appoint a deputy to take care of someone who is lacking capacity where there is no EPA or LPA in place?
The court of protection
If a policy holder goes bankrupt, who now owns their life policy?
The trustee in bankruptcy
Does the data protection legislation apply to manual records?
Yes
What is the name of the document used to prove an advisor knew their customer?
A fact- find
When must the suitability report be sent?
At the latest, with the cancellation notice
What English Act sets the age of majority?
The family law reform act 1969
Under what act could a receiver be appointed for a patient suffering from a mental health disorder?
The mental health act 1983
What does an insurer wishing to transact and new class of business need to do?
Get permission from the PRA
What effect does mental incapacity have on the general power of attorney?
It is automatically revoked
What special type of attorney was created in 1985?
An enduring power of attorney (EPA)
What act sets out the law on bankruptcy?
The insolvency act 1986
Why do most advisors inisit their clients make payments directly to the life office rather to the themselves?
Because the advisor would need specific regulatory permission to handle client money and a client money bank account.
Who oversees data protection legislation?
The information commissioner
What is an execution only sale?
A sale where the client knows exactly what they want and does not request or need any advice.
How long does those new to the industry have to complete the investments level 4 examinations?
48 months
A short medical questionnaire plus basic tests, such as measuring blood pressure undertaken by a nurse, is known as
A Paramedical
