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10 Cards in this Set
- Front
- Back
underwriting individual health insurance is
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the process of selecting and classifying risks
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underwriter weighs in on following factors
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1. age and sex
2. occupation and activities outside of work 3. physical condition and past medical history 4. habits and lifestyle |
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underwriters rely heavily on (6 things)
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1 agent/ producer report- agents personal opinions and observations
2. attending physicians statement- info about medical history or a medical condition 3. medical info bureau- non profit agency collecting medical info about insurance applicants and makes it available to member companies when asked. only for underwriting or assessing claims 4. investigative consumer reports- personal history and lifestyle and financial condition 5. Location- can be a risk factor and premium price 6. Credit reports- credit score |
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insurable interest
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party getting accident or health insurance must expect a financial loss from insureds death
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parties allowed to have insurable interest
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1. individuals in themselves
2. spouses in each other 3. parents in their children 4. children in their parents or grandparents . |
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4 levels of certain risk
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1 declined
2 substandard 3. standard 4. preferred |
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no medical underwriting is what
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cant reject a application based on person health nor can raise premium on those persons. insurers must use a community rate
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health insurance premiums are made of 2 parts
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1 expected cost of covering policy benefits
2. insurers expenses and profit goal (Load) 35 to 40% of premium cost is the load |
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morbidity rate
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average number of persons at various ages that will become disabled. also indicate how long disablility will last.
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unearned premium
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portion of paid premium representing future coverage. as premium passes, unearned becomes earned premium
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