Producers role in the health insurance sale

Question 1

Primary document that insurance underwriters use to determine the applicants risk is called?

Answer 1

The application

Question 2

Who can make changes of information on the application?

Answer 2

The applicant only - They must initial any changes.

Question 3

The application must be completed in its entirety and signed by who to be submitted?

Answer 3

both applicant and producer

Question 4

As the insurer’s agent, the producer also acts as what, and guides them through the application/makes sure all questions are answered?

Answer 4

field underwriter

Question 5

What is the Agents report section on the application?

Answer 5

where the producer/agent fills out relationship with applicant, how they met, and purpose for coverage.

Question 6

If the application requires a medical exam who is responsible for making sure the medical exam is scheduled

Answer 6

the agent/producer

Question 7

True or False: The first premium usually accompanies the application for an individual health insurance policy.

Answer 7

True

Question 8

The completed application and the payment are what to the insurer?

Answer 8

The applicants offer

Question 9

Name the two types of premium receipts

Answer 9

Conditional and binding

Question 10

This type of receipt gives the applicant coverage during the underwriting period. Coverage takes affect when the application is signed.

Answer 10

Binding receipt

Question 11

This receipt gives the applicant coverage from the date of the medical exam (if required) or signed application…whichever one is later

Answer 11

Conditional receipt

Question 12

What type of insurance is a binding receipt most commonly used?

Answer 12

Property insurance (like auto)

Question 13

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?

Answer 13

A conditional receipt

Question 14

What is the difference between a binding receipt and a conditional receipt?

Answer 14

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

Question 15

Once the application has been approved and delivered, what else is the producer to get from the applicant?

Answer 15

statement of good health

Question 16

What is the statement of continued good health?

Answer 16

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.

Question 17

True or false: It is illegal to replace an applicants policy.

Answer 17

False- It can be replaced but has to be in best interest of the applicant

Question 18

If an applicant wants to replace a policy, the producer must give the applicant what?

Answer 18

Notice of replacement

Question 19

The notice of replacement is required and informs the applicant of what?

Answer 19

real and potential consequences of replacing the policy.

Question 20

What does E&O insurance stand for?

Answer 20

Errors and omissions insurance

Question 21

What is the name of insurance for producers that covers the cost defending the producer in a lawsuit filed against the producer.

Answer 21

Errors and omissions insurance (E&O)