how can health insurance policies be delivered to the insured?
personally delivered by the agent or mailed
what document describes the specific information about a policy
policy summary
what do individuals use to transfer their risk of loss to a larger group
insurance
in health insurance contract,the insured is not legally bound to any particular action; however,the insurer is obligated to pay for losses covered by the policy.what contract element does this describe?
unilateral
who is a field underwriter
Agent/Producer
whose responsibility is it to determine that all the question on an insurance application are answered
the agent's
in forming an insurance contract,when does an acceptance usually occur?
when the insurer approves a prepaid application
what are the four elements of an insurance contract
agreement(offer and acceptance ),consideration,competent parties,and legal purpose
what is the name of the process that insurance companies use to determine whether or not an applicant is insurable
underwriting
what is the purpose of the agent's report during the application process
the agent's report discusses the agent's personal observations about the proposed insured that may help in the underwriting process.
When would a misrepresentation be considered material?
when it may alter the underwriting decision
who must have insurable interest in the insured
the policyowner
what is the best way to handle incomplete insurance application
return the application to the applicant for completion
if an applicant does not receive his or her insurance policy,who would be held responsible
the agent
what term describes the fee a person pays an insurance company to receive coverage
premium
what is insurance underwriting
the process of risk selection and classification
during which stage in the insurance process do insurers evaluate information that identifies adverse selection risk
underwriting
what is the main responsibility of a company's underwriting unit
risk selection
what law protects consumers from the circulation of inaccurate or obsolete information
the fair credit reporting act
if an agent fails to obtain the applicant's signature on the insurance application,what must the insurer do
send the application back to the applicant for signature
what is a warranty in an insurance contract
an absolutely true statement upon which the validity of insurance contract is based
at what point does coverage begin when an agent issues a conditional receipt for a life insurance policy
either on the date of the application or the date of the medical exam (whichever occurs last)
when would a misrepresentation on an insurance application be considered fraud
when it is intentional and material
how is the information obtain for an investigative consumer report
through interviews with the applicant's associates, friends and neighbors
what is adverse selection
people who are more likely to submit insurance claims are seeking insurance more often than preferred risk
what two elements are necessary for a life insurance contract to have a legal purpose
insurable interest and consent
when must the policy summary for a life insurance policy be delivered to the policyowner
at the time of policy delivery
insurance is a contract that protects the insured from what
loss
health insurance contracts are unilateral .what does that mean
only one party makes a legally enforceable promise
what entities make up the Medical Information bureau?
insurers
what type of report provides information about the applicant's hobbies, habits and financial status
inspection report
what are the three types of risk rating classifications in life insurance
standard,substandard and preferred
what is policy replacement
a new policy is issued while an existing policy is terminated or reissued with a reduction in cash value
in insurance ,when is the offer usually made on a contract
when the insurance application is submitted
if an insurer needs to obtain information about the applicant from investigators,what is the insurer required to do
provide the applicant a disclosure authorization notice
when does an insurance policy go into effect
when the policy is delivered and the premium is paid
if an applicant for a life insurance policy and the potential insured are two different people,what would be the underwriter's main concern
the existence of insurable interest between the applicant and the insured
what are three main instance when insurable interest exists in life insurance
insuring your own life, the life of a family member,or the life of a business partners or someone who has a financial obligation to the policyowner
what report is used to assess risk associated with a health insurance applicant's lifestyle and character
investigation consumer report
what risk classification would typically qualify for lower premiums
preferred risk
health contracts are prepared by insurers and must be accepted by the insured on an as in basis. this describes what aspect of a health insurance contract
contract of adhesion
when must insurable interest exist in a life insurance policy
at the time of application
when a change needs to be made on the application for insurance,which is the best method for correcting the information
complete a new application or ask the applicant to initial the correction on the original application