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33 Cards in this Set
- Front
- Back
- 3rd side (hint)
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with the application |
Agents should make every effort to collect the initial premium ___________. |
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Constructive Delivery |
What is it called when the insured hands control of the policy to another person (usually the agent)? |
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Electronically, by mail or in person. |
How may a life policy be delivered? |
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Electronically, by mail or in person. |
How may a life policy be delivered? |
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Both the agent and the applicant. |
Whose signature must be on the application in order for it to be complete? |
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Because of different risk classifications |
Why would a Life policy premium be different for identical twins? |
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60 days |
A binding receipt (binder) provides coverage from the date of the application-that usually lasts for- |
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loss ratio |
The proportion of losses incurred by an insurer with respect to premiums received is the ________. |
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Fair Credit Reporting Act |
Which Act. allows for prosecution if a consumer’s information was obtained under false pretenses? |
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Morbidity deals with health rates, mortality deals with death rates. |
What is the difference between morbidity and mortality? |
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face policy insuring clause conditions exclusions |
Life insurance contracts have 4 main components. They are: |
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Personal delivery |
When the agent must deliver the policy in person and obtain a statement of good health from the insured. |
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The date of the premium receipt. |
When does life coverage begin if the application submitted an application with the first premium? |
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adhesion |
Insurance contracts are contracts of ________. |
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the initial premium must be paid. |
In order for the policy to be considered “delivered,”__________________. |
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the applicant, policyowner and/or insured. |
The policyholder can be ______________________. |
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Offer and acceptance Consideration Competent Parties Legal Purpose |
What four elements must be present for a contract to be valid? |
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Adhesion |
What type of contract has one author: the insurance company? Conditional, Adhesion, or Unilateral? |
Also known as the “take it or leave it” |
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Representations |
What are an applicant’s statements considered to be on a life policy application? |
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delivered |
When the insurer approves the application and issues the policy for delivery, it is considered _________. |
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physical condition, moral hazards, and occupation. |
The most important factors in underwriting a health policy are: |
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being blind |
Unfair discrimination is illegal and includes discrimination based on sexual orientation, physical or mental impairment, and _____________. |
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the premium payment mode. |
The frequency that premium payments are made is called _____________. |
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Representations are made by the insured to the best of their knowledge. Misrepresentations are intentional misstatements. |
Representations and misrepresentations are different because... |
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Unilateral |
What type of contract has one promisor, the insurance company? |
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I. General Information II. Medical Information III. Agent’s Report |
And insurance application consists of what three basic parts? |
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subrogation |
The right of an insurer to assume the rights of the insured and sue a responsible third-party is called ____________. |
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The agent, when the application and premium have been collected. |
Who issues a conditional receipt and when is it issued? |
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conditions must be met by all parties in order for the contract to be legally enforceable. |
Insurance contracts are considered to be conditional contracts because… |
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“If” a loss occurs, “then” the insurer pays benefits. |
Conditional contracts are thought of as “if-then”. Why? |
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on the application |
The primary source of insurability information is contained… |
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at the time of the application. |
With a life and health contract, insurable interest must exist… |
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In the presence of the applicant. |
Changes on the application should be corrected when/where? |
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