Pa Life Insurance Terminology

Front 1

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

Back 1

--lapsed, terminated
--reissued with reduction in value
--converted to reduce paid up insurance
--pledged as collateral
--amended to reduce benefits or term of coverage

Front 2

each producer who sends in an application must submit the following also:

Back 2

--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

Front 3

Where a replacement is involved, producer must do the following:

Back 3

--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

Front 4

How many days does a replacing insurance company have to notify existing ins. co. of proposed replacement

Back 4

5 days from date of application

Front 5

If an insurer plans to seed and use information from investigators, they must provide applicant with a written

Back 5

Disclosure Authorization Notice

Front 6

the process in which an insurance company determines whether or not a particular applicant is insurable

Back 6

underwriting

Front 7

Who is the field underwriter

Back 7

agent

Front 8

Responsibilities of field underwriter:

Back 8

--proper solicitation of applicants
--completing the application
--obtaining signatures
--collect premium and issue receipt
--deliver policy

Front 9

If a policy is issued with questions left unanswered, the contract will be interpreted as

Back 9

the insurer waiving its right to answer the question and barred from any right of denying coverage based on unanswered question

Front 10

risk which are more likely to suffer a loss

Back 10

adverse selection

Front 11

Primary criteria underwriters will use in assessing an applicants desirability

Back 11

health (past and current)
occupation
lifestyle
hobbies and habits

Front 12

what is the starting point and basic source of information used by underwriters

Back 12

application

Front 13

three basic sections of an application

Back 13

general information
medical information
Agents report

Front 14

what does not become a part of the entire contract

Back 14

The agent's report

Front 15

What does a contract consist of?

Back 15

Policy and application

Front 16

Who must sign application

Back 16

Applicant and agent

Front 17

When does a policy go into affect?

Back 17

premium is paid and
deliver of policy

Front 18

When agent collects premium what should be issued?

Back 18

premium receipt

Front 19

three types of premium receipts? most common

Back 19

--conditional receipt
--approval conditional receipt
--unconditional receipt

conditional receipt

Front 20

When the insurer relinquishes control of the policy by mailing it to the policyowner

Back 20

constructive delivery

Front 21

a statement that is signed by insured attesting to their continued good health since application to deliver of policy

Back 21

statement of good health

Front 22

When an agent delivers the policy by hand to policyowner what must be signed?

Back 22

delivery receipt

Front 23

a statement usually obtained from the applicant's doctor

Back 23

attending physician statement

Front 24

a non profit trade organization which receives adverse medical information from insurance companies

Back 24

Medical Information Bureau (MIB)

Front 25

What does underwriters do with the information obtained from Medical Information Bureau?

Back 25

a client can not be refused because of the report but must further investagate applicant's insurability

Front 26

Three rating classifications

Back 26

substandard
standard
preferred