Producers role in the health insurance sale Flashcards
Primary document that insurance underwriters use to determine the applicants risk is called?
The application
Who can make changes of information on the application?
The applicant only - They must initial any changes.
The application must be completed in its entirety and signed by who to be submitted?
both applicant and producer
As the insurer’s agent, the producer also acts as what, and guides them through the application/makes sure all questions are answered?
field underwriter
What is the Agents report section on the application?
where the producer/agent fills out relationship with applicant, how they met, and purpose for coverage.
If the application requires a medical exam who is responsible for making sure the medical exam is scheduled
the agent/producer
True or False: The first premium usually accompanies the application for an individual health insurance policy.
True
The completed application and the payment are what to the insurer?
The applicants offer
Name the two types of premium receipts
Conditional and binding
This type of receipt gives the applicant coverage during the underwriting period. Coverage takes affect when the application is signed.
Binding receipt
This receipt gives the applicant coverage from the date of the medical exam (if required) or signed application…whichever one is later
Conditional receipt
What type of insurance is a binding receipt most commonly used?
Property insurance (like auto)
If an applicant turns out to be uninsurable the insurer is NOT liable for any claims made during underwriting period and will return the first premium…What kind of receipt is this called?
A conditional receipt
What is the difference between a binding receipt and a conditional receipt?
Binding receipt and conditional receipt both have coverage immediately, but with binding the insurer is held liable for any claims even if the applicant turns out to be uninsurable.
Conditional receipt -insurer is NOT liable
Once the application has been approved and delivered, what else is the producer to get from the applicant?
statement of good health
What is the statement of continued good health?
A signature from the applicant that is attached to the newly issued policy to confirm the applicants health has not changed since they completed the application.
True or false: It is illegal to replace an applicants policy.
False- It can be replaced but has to be in best interest of the applicant
If an applicant wants to replace a policy, the producer must give the applicant what?
Notice of replacement
The notice of replacement is required and informs the applicant of what?
real and potential consequences of replacing the policy.
What does E&O insurance stand for?
Errors and omissions insurance
What is the name of insurance for producers that covers the cost defending the producer in a lawsuit filed against the producer.
Errors and omissions insurance (E&O)
