Accident and Health insurance basics (Arizona)

Health coverage becomes effective when the:

First premium has been paid and the application has been approved

Accidental Injury only

Any death benefit under a health insurance contract is limited to deaths

The Fair Credit Reporting Act requires that..

The applicant for insurance be advised, in advance, that a consumer report may be requested

Sources of Underwriting

The contents of an inspection report CAN be disclosed to the applicant

The Insuring Clause does not state..

The method of premium payment

Consideration Clause

Forgetting important past treatment dates and signing the application anyways. The applicant would not be insured for not meeting the conditions

A producers underwriting responsibility includes..

Making sure all material facts are included in the application

Representation

Unaware of an existing physical problem

Conditional Receipt

It is an interim insuring agreement. It starts coverage right away if all conditions have been satisfied

Policy delivery refers to the delivery of the:

Completed insurance policy to the applicant

If the Premium has been paid and a conditional receipt has been issued, coverage starts when..

The Insurance company accepts the risk

In the Cancellation Provision

The insurance company IS obligated to refund the unearned premium upon cancellation

Critical Illness insurance

A limited health insurance policy that will pay a lump-sum to the insured if they are diagnosed with cancer, stroke, heart attack or Alzheimer's

Eligibility for Worker's Comp is determined by the:

State

Risk Avoidance

When someone considers buying a business, but elects not to do so

Most health insurance policies exclude all of the following

Occupational injury, Intentional Injury or Injury due to war

The Principal Sum

The payable death benefit on an Accidental Death and Dismemberment (AD&D)

The Capital Sum

Pays for dismemberment and is usually written to be 50% of the principal sum. (Loss of digits not covered)

Under the Fair Credit Reporting Act, Persons rejected for insurance

Must be informed of the source of the report

An agent may not change an application with

The verbal consent of the applicant

No type of HEALTH insurance covers:

Death due to sickness