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24 Cards in this Set

  • Front
  • Back

Elements of a legal contract

- Agreement


- consideration


- compitent parties


- legal purpose

Adhesion

One party prepares a contract, the other party must accept it as is

Aleatory

Exchange of unequal amounts

Conditional

Certain conditions must be met.

Unilateral

Only one party is leagaly bound to the contract

Agents report

Agents observations about an applicant that can assist in underwriting

Risk classifications (3 types)

Standard


Substandard


Preferred

Underwriting sources

Application


Consumers report


MIB

Fair credit reporting act

Protects consumers against circulation of innacurate or obsolete information

3 key Primium factors

Mortality


Interest


Expense

Mode

Frequency of primium payments

Policy issue date

-Primium paid with application


-primium and statement of good health on policy delivery

Policy statement

Writen statement describing features and elements of policy

Illustration

-Is not part of a contract



-Distinguishes between guaranteed and projected amounts



- identifies values which are not guaranteed.

Buyers guide

- generic information about life insurance



- provided prior to accepting innitial premium.

Stoli

Stranger owned life insurance

Medical information bureau

-Membership corporation owned by member insurance companies

consumers report

Information regarding consumers credit, character, reputation, or habbits

Ageants report

Provides underwriter with known information of applicant

Underwriting

The risk selection process

Application part 1

Generall information

Application part 2

Medical information

Representation

A statement believed to be true

Warranty

An absolute true statement