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26 Cards in this Set

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any transaction in which new life insurance or a new annuity is to be purchased is known that an existing life insurance will be any of the following
--lapsed, terminated
--reissued with reduction in value
--converted to reduce paid up insurance
--pledged as collateral
--amended to reduce benefits or term of coverage
each producer who sends in an application must submit the following also:
--a statement signed by applicant as to whether replacement of existing life insurance is involved
--statement signed by producer as to whether he knows replacement is involved
Where a replacement is involved, producer must do the following:
--present to the applicant a Notice Regarding Replacement that is signed by applicant and producer
--obtain a list of exsisting policies
--leave original copy of presentation used
--submit to the replacing ins co. the application, copy of replacement notice
How many days does a replacing insurance company have to notify existing ins. co. of proposed replacement
5 days from date of application
If an insurer plans to seed and use information from investigators, they must provide applicant with a written
Disclosure Authorization Notice
the process in which an insurance company determines whether or not a particular applicant is insurable
underwriting
Who is the field underwriter
agent
Responsibilities of field underwriter:
--proper solicitation of applicants
--completing the application
--obtaining signatures
--collect premium and issue receipt
--deliver policy
If a policy is issued with questions left unanswered, the contract will be interpreted as
the insurer waiving its right to answer the question and barred from any right of denying coverage based on unanswered question
risk which are more likely to suffer a loss
adverse selection
Primary criteria underwriters will use in assessing an applicants desirability
health (past and current)
occupation
lifestyle
hobbies and habits
what is the starting point and basic source of information used by underwriters
application
three basic sections of an application
general information
medical information
Agents report
what does not become a part of the entire contract
The agent's report
What does a contract consist of?
Policy and application
Who must sign application
Applicant and agent
When does a policy go into affect?
premium is paid and
deliver of policy
When agent collects premium what should be issued?
premium receipt
three types of premium receipts? most common
--conditional receipt
--approval conditional receipt
--unconditional receipt

conditional receipt
When the insurer relinquishes control of the policy by mailing it to the policyowner
constructive delivery
a statement that is signed by insured attesting to their continued good health since application to deliver of policy
statement of good health
When an agent delivers the policy by hand to policyowner what must be signed?
delivery receipt
a statement usually obtained from the applicant's doctor
attending physician statement
a non profit trade organization which receives adverse medical information from insurance companies
Medical Information Bureau (MIB)
What does underwriters do with the information obtained from Medical Information Bureau?
a client can not be refused because of the report but must further investagate applicant's insurability
Three rating classifications
substandard
standard
preferred