Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
182 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Premium |
The money a policy owner pays to an insurer for the protection that is provided by an insurance policy |
|
|
|
Evidence of Insurability (E of I) |
Any statement or proof of an insured's physical condition and/or other factual information affecting his acceptance for insurance (E.g. application; physical exam; blood; urine; saliva) |
|
|
|
Applicant |
Person who applies for a policy on own life or on life of another |
|
|
|
Policy owner (Policyholder) |
Individual who exercises ownership rights (typically, but not exclusively, the applicant) |
|
|
|
Insured |
Subject of the policy; death triggers death benefit (consent & E of I required) |
|
|
|
Beneficiary |
Receives death benefit upon death or insured (consent not required) |
|
|
|
Life Insurance Application |
Most important evidence of insurability 3 sections: 1) general information; 2) health information; 3) agent's report/statement |
|
|
|
Key Person Insurance |
Life insurance purchased by a business on the life of a key employee whose death would have adverse effects on the company
Uses: -recruit and train replacement; -replace lost profits; -assure potential creditors (**note: not an actual type of insurance, just a business use of insurance) |
|
|
|
Buy-Sell Insurance |
Life insurance purchased to fund a Buy-Sell agreement (living partner required to buy deceased partner's estate in the business) (**note: not an actual type of insurance, but a business use of insurance) |
|
|
|
Split Dollar Life Insurance |
A method of paying for an employee's insurance coverage in which the employer/employee 'split' the premium, cash values and death benefits for a life policy, usually a permanent type of life policy -used to retain key employees -guaranteed to receive contribution back ((**note: not a type of insurance but a business use of insurance)) |
|
|
|
Measure of Liability |
The amount the insurer is obligated to pay upon the insured's death
Formula: face amount - outstanding policy loans - loan interest = Measure of Liability |
Also known as 'Limit of Liability' or 'Net Death Benefit' |
|
|
Insurable Interest Regarding Life Insurance |
Required (only) at the time of application for Life Insurance App.; updates not needed |
Rule pertaining to life insurance |
|
|
Human Life Value Approach |
Amount of life insurance is estimated based on contribution to household (I.e. income, projected pay raises, household services, employment benefits) |
|
|
|
Needs Approach |
Based on needs that will no longer be met or occur due to loss (I.e. funeral expenses, legal fees/taxes, business buyout, probate fees, medical expenses, emergency funds, mortgage/rent, credit cards/loans, education costs) |
|
|
|
Mortality |
The death rate in a given population |
|
|
|
Mortality Table |
Helps predict most accurate premium rates based on historical experience and future projections; deaths by age and sex. |
|
|
|
"Life Insurance Creates an Immediate Estate" |
All assets pass to heirs when you pass; however, many people have a negative estate (debt). Life insurance creates an "Immediate Estate" because it brings immediate value to your passing based on the policy taken. |
|
|
|
Intestate |
When a person dies w/o having created a will to direct the disposition of his assets (estate) |
|
|
|
Avoidance |
Not performing an activity that could carry risk (e.g. Not flying in a plane) |
1 of 4 Risk Management Methods |
|
|
Reduction |
Methods that reduce that severity of loss or likelihood of loss from occurring (e.g. installing sprinklers) |
1 of 4 Risk Management Methods |
|
|
Retention |
Assuming all or part of a risk (I.e. self-insure). Visit strategy for small roaks where the cost of insuring would be greater than the total losses sustained |
1 of 4 Risk Management Methods |
|
|
Transfer |
Purchasing insurance policy so that financial impact of loss is transferred to insurance company |
1 of 4 Risk Management Methods |
|
|
Term Life Insurance |
Life insurance that covers a limited term; may or may not be renewable. No cash value. Helpful for small premium and large benefit. |
Most basic kind of life insurance |
|
|
Face Amount |
Amount if insurance provided by a life policy. |
Death Benefit |
|
|
Renewable Term Policy |
Type of term life policy that gives the policyowner the option to renew the policy at the end of its term for another term without E of I |
|
|
|
Increasing Term Policy |
Face amount increases systematically but premiums stay level |
Works well for young, growing families |
|
|
Decreasing Term Policy |
Face amount decreases systematically; premiums decrease with face amount |
Associated with mortgage insurance |
|
|
Whole Life Insurance |
Covers the entire life-span of an individual without need for renewal or varying premiums; charges more in youth to cover would-be fluctuations in late ages
Face amount, cash value, and level premium are guaranteed **AKA: permanent life and ordinary life |
Cash Value = Face Amount @ age 100 |
|
|
Policy Loan |
An advance of money available to the policyowner from a policy's cash value; interest will be charged. Policyowner does not have to be approved for loan and there's no fixed time for repayment. Anything owned will be deducted from Measure of Liability. Will not allow full cash value for loan |
|
|
|
Term Conversion Provision |
Provision in most term policies that allows owner to cover to a permanent plan of insurance without evidence of insurability (E of I) Premium will be based on age at time of conversion |
|
|
|
Modified Whole Life Policy |
Premiums increase somewhere between year 3-5 |
|
|
|
Graded Premium Whole Life |
Premiums increase annually for 5-10 years Premium remains level agree a series of increases |
|
|
|
Continuous Premium Whole Life Policy |
Premiums payable through agree 100 |
|
|
|
Limited Whole Life Policy |
Premiums payable for survivors number of years or until a specified age |
|
|
|
Joint Life (First-to-Die) Policy |
Pays out at first death; can also provide income for surviving spouse Benefit: less expensive than two separate policies |
|
|
|
Survivorship Life (Second- or Last-to-Die) Policy |
Pays out at second death; typically for those with a large estate to cover estate taxes; still less expensive than two separate policies |
|
|
|
Endowments |
Work like continuous premium whole life policies, except that maturity age is less than 100; can provide death benefit or be used for retirement funds |
Not as popular anymore due to changes in tax laws |
|
|
Universal Life Policy |
Like a functional savings account; charged a premium expense (a % which is only paid when premium is paid) for the account and a monthly fee (roughly $5, always paid) and the rest of premium goes towards account value which collects interest (either based on current interest rates or a guaranteed rate) Additionally, there's a "cost of mortality (insurance)" which is essentially the fluctuation of premium charges *unique: can make withdrawals from account with no need to repay, just deducted from death benefit |
|
|
|
Fixed Product |
Product in which premiums are invested and backed by the insurer's General Account |
|
|
|
General Account |
Investment account used for insurer's 'fixed' products; very conservative and highly regulated |
|
|
|
Separate Accounts |
Contains various 'mutual fund-like' accounts called sub-accounts used to provide investment choices for insurer's variable products |
|
|
|
Equity Index |
Essentially an imaginary portfolio of stocks (equities) that represents the general price movement of the stocks that make up the portfolio; typically indicates the health of the stock market |
|
|
|
Equity Indexed UL |
Like an UL or VUL except the interest/backing is based on the Equity Index |
|
|
|
Riders (Endorsements) |
Addition to life policy that provides some additional feature or coverage (requires additional premium) |
|
|
|
Waiver of Premium |
Waives policy premium if injured/disabled; eliminate short-term disability coverage; available on term and whole life |
|
|
|
Waiver of Monthly Deduction |
Waives monthly deduction of insured is disabled for UL |
UL WP |
|
|
Term Riders |
A term insurrant added to a base Rider (spouse, children [CTR], etc) |
|
|
|
Payor Coverage |
Available on juvenile policies; waives premiums for payor if payor dies or is disabled; premiums waived untim insured is 21 |
|
|
|
Disability Income Rider |
Pays monthly benefit while insured is disabled |
|
|
|
Accidental Death (AD) |
Pays additional death benefit if death is the result of an accident; death must occur w/in a certain time frame after accident and not a result from a hobby |
|
|
|
Accidental Death & Dismemberment |
Covers AD and Dismemberment; schedule lists amounts paid; benefits paid usually in a lump sum |
|
|
|
Principal Sum |
100% of AD&D coverage amount (whole amount paid out) |
|
|
|
Capital Sum |
Less than 100% of AD&D coverage amount |
|
|
|
Cost of Living Rider (COLA) |
Automatically increases face amount with increases in Consumer Price Index (CPI) without requiring E of I |
|
|
|
Guaranteed Insurability Rider |
Asked additional insurance to be purchased without E of I at specified ages of insured and after 'qualifying events' |
|
|
|
Living Benefits |
Any method which allows policy owner to benefit from policy while insured is still living |
E.g. policy loans, withdrawals, long term care benefits |
|
|
Accelerated Death Benefit |
Pays out up to 70% when insured becomes terminally ill/critically ill; death benefit is reduced as a result |
|
|
|
Long Term Care Rider |
Conceptually similar to the ADB; pays a % of face amount for insured's LTC expenses |
|
|
|
Return of Premium (RoP) Rider |
Rider on a term Policy returns part or all of the premiums paid in if insured is still living at the end of the policy's term; ineffective if you don't pay your premiums |
|
|
|
No Lapse Guarantee Rider |
Rider available on a UL policy that guaranteed policy will remain in force for a guaranteed period even if cash value drops to zero |
|
|
|
Family Life Policy |
Combines Whole Life with Term Riders to cover ALL family members in a single packaged policy |
|
|
|
Family Maintenance Policy |
Combines Whole Life with Level Term Rider to cover breadwinner; provides monthly income; whole life policy pays death benefit after monthly income terminates |
|
|
|
Family Income Policy |
Combines Whole Life with Decreasing Term to cover breadwinner; pays out monthly income for specified amount of time; whole life policy pays death benefit after monthly income terminates |
|
|
|
Family Term Rider |
Combines level term coverage in spouse and children into single rider |
|
|
|
Indexed Life Policy |
Whole life; face amount increases with CPI; decreases don't affect policy |
|
|
|
Jumping Juvenile |
While live policy issued on a juvenile (age 16 or under); face amount jumps 5x at age 21 |
|
|
|
Deposit Term |
Packaged policy made up of single premium endowment and a 10 year level renewable term Rider |
|
|
|
Industrial Life Policy |
While life with face amount under $1k; premiums collected weekly by home service agents; often non-medical insurance |
|
|
|
Beneficiaries |
Recipient (s) of death benefits. Can be an individual or a group; 3 classes: 1) primary; 2) contingent (successor); 3) tertiary (final) |
|
|
|
Settlement Options |
How beneficiaries will receive death benefit |
|
|
|
Interest Only |
Policy proceeds kept in an account with insurer and periodic interest payments (monthly, quarterly, semi-annually, annually) made to beneficiary |
|
|
|
Fixed Amount |
Fixed amounts oasis to beneficiary at survived intervals until the principal and interest are depleted |
|
|
|
Fixed Period |
Installments area paid to the beneficiary over a fixed number of years. Amount of installments is based on amount of policy proceeds, interest, and length of the period chosen. |
|
|
|
Lump Sum |
Policy proceeds paid out in one lump sum; default if no other option chosen by insurer or beneficiary |
|
|
|
Life Income |
Insurer retains principal death benefit in exchange for a lifetime income paid to the beginning. Amount of income payments depends on several factors, including principal amount, age and sex of beneficiary and prevailing interest rates |
|
|
|
IFFLL Tower |
Acronym for settlement options: Interest only Fixed amount Fixed period Lump sum Life income |
|
|
|
Nonforfeiture Options |
Legally required options for using the cash value of whole life policies 3: "REC" Reduced paid-up Extended term Cash surrender |
|
|
|
Reduced Paid-Up |
Cash value used as a single premium payment to fully pay up policy with reduced face amount |
A nonforfeiture option |
|
|
Extended Term |
Cash value of whole life value is used as a single premium to cut term insurance with the same death benefit as the whole life policy |
Nonforfeiture option |
|
|
Cash Surrender |
Policy terminated and cash value paid to policyowner |
Nonforfeiture option |
|
|
Common Disaster Clause |
Provision that states when it is impossible to determine who died first because of a common accident, the insured with be presumed to have survived the primary beneficiary; protects the contingent beneficiary |
|
|
|
Survivorship Clause |
Specifies an amount of time by which a beneficiary must outbid the insured in order to recurve lunch proceeds (death benefit) |
|
|
|
Spendthrift |
Someone who adorbs money recklessly or wastefully |
|
|
|
Spendthrift Clause |
Provision that protects the policy proceeds from creditors of the beneficiary |
|
|
|
Grace Period (Life) |
Contractual provision that continues coverage under life policy up to 60 days after due date when premium is NOT paid |
|
|
|
Automatic Premium Loan (APL) |
"Any premium not paid by the end of its grace period will be paid by charging it as a policy loan if you requested it in writing and the maximum loan value is sufficient to cover the premium" |
|
|
|
Reinstatement Provision |
Spells out the requirements that must be satisfied for insurer to consider reinstating a lapsed policy Allowed within 5 years of Lapse Overdue premiums + interest Outstanding loan paid or reinstated E of I acceptance to insurer |
|
|
|
Entire Contract Provision |
Statee that a copy of the application must be made last of the policy for it to be valid |
|
|
|
Incontestability Clause |
Waives the issuance company's rights to dispute the validity of the contract after it has been in force for 2 years; protects the beneficiary |
|
|
|
Suicide Clause |
Limits insurance company's liability to a refund of a premium if the insured commits suicide within 2 years of the policy's effective date; protects the beneficiary |
|
|
|
Facility of Payments Provision |
Provision that says if no beneficiaries are living when the insured dies, then the death benefit will be issued to the owner is owner's estate if not living |
|
|
|
Misstatement of Age/Sex |
Provision that says if the insured's age or sex is different from what was on the application, an adjustment will be made to the coverage based on the correct age or sex |
|
|
|
Absolute Assignment |
Transfer of all ownership rights; permanent in nature |
|
|
|
Collateral Assignment |
Partial transfer of ownership rights; temporary in nature; most often used with bank loans (life policy used as collateral) |
|
|
|
Assignment Provision |
"You may assign this policy or any interest in it. We will recognize an assignment only if it is in writing and filed with us." |
|
|
|
Viatical Settlement |
Contractual agreement that provides a terminally ill person immediate cash in exchange for his ownership rights in a life policy |
|
|
|
Insuring Clause |
Basic promise to pay policy proceeds upon insured's death |
|
|
|
Facility of Payments Provision |
Explains who will receive the policy's death benefit if no beneficiary has been chosen by the owner or there are no beneficiaries at the time of the insured's death |
|
|
|
Life Settlement |
Contact in which policyowner assigns ownership to provider in exchange for an amount that is less than policy's death benefit, but more than it's cash surrender value |
|
|
|
Life Settlement Brokers |
A person who acts on behalf of an owner of a life policy to negotiate a life settlement contract between the owner and a life settlement provider; represents the owner, not the provier; only needs 1 yr life agent experience or if less than you need 15 hrs of education |
|
|
|
Fair Credit Reporting Act |
Designed to promote accuracy and ensure privacy of the information used in consumer reports |
|
|
|
Attending Physician's Statement |
Statement/medical records isof the doctor who treated the applicant for a particular illness or disease; applicant must sign consent form to authorize release |
|
|
|
Medical Information Bureau (MIB) |
Database where member insured report adverse medical conditions to share with other member insurer's; cannot be used along to decline application |
|
|
|
HIV/AIDS Testing |
Marital status and suspected sexual orientation cannot be used; amt/age can be used; HIV consent form meaning of test results; notification procedures; who may receive results |
|
|
|
Risk Classification |
3 types: preferred, standard, substandard |
|
|
|
Preferred Risk |
Lower risk; lower premium |
|
|
|
Standard |
Average risk; average premium |
|
|
|
Substandard |
Higher risk; higher premium |
|
|
|
Non- Medical Application |
Life insurance application in which the proposed insured night not be required to undergo a medical exam; insurer always reserves the right to require a medical exam if it feels one is necessary |
|
|
|
Mode |
Frequency of premium payments; the higher the frequency, the higher the premium; annually, semi-annually, quarterly, monthly |
|
|
|
Policy Dividend |
Non-guaranteed return of premium paid to a policyowner out of an insurance company's surplus |
|
|
|
Earned Surplus |
Earnings not paid out as dividends, but reinvested in the business, also called retained earnings |
|
|
|
Life Policy Illustration |
A presentation or depiction that includes both guaranteed and nonguaranteed elements of a life policy over a period of years into the future |
|
|
|
Guaranteed Values |
The premiums, benefits, values, credits or charges that are guaranteed at issue |
|
|
|
Non-Guaranteed Values |
The premiums, benefits, values, credits or charges that are NOT guaranteed or not determined at issue |
|
|
|
Summary Status Report |
Must be sent annually by insurer to policyowners of policy types for which the insurer has designated that illustrations will be used for marketing purposes |
|
|
|
Preprinted |
Illustrations are those prepared using some sort of illustration software |
|
|
|
Non-Preprinted |
Illustrations are those prepared manually by agent |
|
|
|
Supplemental Illustration |
An illustration furnished in addition to a basic illustration, but may only depict a scale of non-guaranteed elements that is permitted in a basic illustration |
|
|
|
Binding Receipt |
Provides immediate coverage for started period; coverage applies even if underwriter devices the application |
|
|
|
Conditional Receipt |
Provides coverage from date of app only is application is ultimately approved by the underwriter |
|
|
|
Binder |
Written agreement issued by F&C insurer providing temporary coverage (90 days or less) while an application is being underwritten |
|
|
|
Nonforfeiture Options |
Legally required options for using the cash value of whole life policies; 3 types: reduced paid-up, extended term, cash surrender |
|
|
|
Reduced Paid-Up |
Cash value used as a single premium payment to fully pay up policy with a reduced face amount |
|
|
|
Extended Term |
Cash value used as a single premium to buy term insurance with the same death benefit as the whole life policy |
|
|
|
Cash Surrender |
Policy terminated and cash value paid to policyowner |
|
|
|
Common Disaster Clause |
Provision that states when it is impossible to determine who died first because of a common accident, the insured will be presumed to have survived the primary beneficiary |
Protects the contingent beneficiary |
|
|
Survivorship Clause |
Provision that specifies an amount of time by which a beneficiary must outlive the insured in order to receive death policy proceeds (death benefit) |
|
|
|
Spendthrift |
A person who spend money recklessly or wastefully |
|
|
|
Spendthrift Clause |
Provision that protects the policy proceeds from creditors of the beneficiary |
|
|
|
Grace Period (Life) |
Contacted provision that continues coverage under life policy up to 60 days after premium due date when premium is NOT paid |
|
|
|
Automatic Premium Loan (APL) |
Advanced permission to make a policy loan to pay the premium so the policy does not lapse; "Any premium not paid by the end of its grace period will be paid by charging it as a policy loan is you requested it in writing and the maximum loan value is sufficient to cover the premium" |
|
|
|
Reinstatement Provision |
Spells out the requirements that must be satisfied for insurer to consider reinstating a lapsed policy; -w/in 5 years of Lapse -overdue premiums + interest must be paid -outstanding loan paid or reinstated -E of I excepted to insurer |
|
|
|
Entire Contract Provision |
Says that s copy of the application must be made part of the policy for it to be valid |
|
|
|
Incontestability Clause |
Waives the insurance company's rights to dispute the validity of the contract after it has been in force for 2 years |
|
|
|
Suicide Clause |
Limits insurance company's liability to a refund of premium if the insured commits suicide within 2 years of the policy's effective date |
|
|
|
Facility of Payments Provision |
Provision that says if no beneficiaries are moving when the invested dies, then the death benefit will be paid to the owner or owner's estate if not living |
|
|
|
Misstatement of Age or Sex |
Provision that says if the insured's age or sex is different from what was on the application, an adjustment will be made to the coverage based on the correct and or sex |
|
|
|
Absolute Assignment |
-Transfer of all ownership rights -permanent in nature |
|
|
|
Collateral Assignment |
-Partial transfer of ownership rights -Temporary in nature -Life policy can be used as collateral for a loan; most often used for bank loans |
|
|
|
Assignment Provision |
"Though may assign this policy or any interest in it. We will recognize an assignment only if it is in editing and filed with us." |
|
|
|
Viatical Settlement |
Contractual agreement that provides a terminally ill person immediate cash in exchange for his ownership rights in a policy |
|
|
|
Life Settlement |
Contract in which policyowner assigns ownership to provider in exchange for an amount that is less than policy's death benefit, but more than its cash surrender value |
|
|
|
Life Settlement Brokers |
A person who acts on behalf of an owner of a life policy to negotiate a life settlement contract between the owner and a life settlement provider -represents owner, not provider -opposed fiduciary duty to owner -paid a fee, commission or other valuable consideration by owner |
|
|
|
Stranger-Originated Life Insurance (StOLI) |
Involved transfer to 3rd party in exchange for money ($) whereby the individual sender as induced to by a new policy in order to sell it to 3rd party |
|
|
|
Underwriting Tools |
Consumer Reports Attending Physician's Statements (APS) MIN Reports |
|
|
|
Fair Credit Reporting Act (FCRA) |
Designed to promote accuracy and ensure privacy of the information used in consumer reports |
|
|
|
Consumer Reports |
Can be used by underwriters to learn about the person applying for insurance |
|
|
|
Attending Physician's Statements (APS) |
Statement/medical records of the doctor who treated the applicant for a particular illness or disease Applicant MUST sign consent form to authorize release |
|
|
|
Medical Information Bureau (MIB) |
Database where member insurers report adverse medical conditions to share with other member insurers |
|
|
|
Risk Classification |
3 classes: Preferred-lower risk/premium Standard-average risk/premium Sub-standard-higher risk/premium |
|
|
|
Non-Medical Application |
Life insurance application in which the proposed insured might not be required to undergo a medical exam. *the insurer always reserves the right to require a medical exam if it feels one is necessary |
|
|
|
Life Premium Components |
Premiums = Mortality - Investment Income + Expenses + Reinsurance |
P = M-I+E+R (P=MIXR) |
|
|
Payment Modes |
Frequency of premium payments (the higher the frequency, the higher the premium); Anually, semi-annually, quarterly, monthly |
|
|
|
Policy Dividends |
Non-guaranteed return if premium paid to a policyowner out of an insurance company's surplus *penalties for guaranteeing dividends: misdemeanor offense w/ up to 1 year in jail |
|
|
|
One Year Term |
Dividend used to purchase 1 year term Policy |
A dividend option |
|
|
Cash Option |
Dividend paid out in cash to policyowner |
Dividend option |
|
|
Reduced Premium |
Dividend applied to current premium in order to reduce it |
|
|
|
Accumulate at Interest |
Dividend retained by insurer in a special account that earns interest (like a savings account) |
Dividend option |
|
|
Paid-Up Additions |
Dividend used as single premium to purchase paid-up whole life insurance |
Dividend option |
|
|
Par v. Non-Par |
Par = Participating; eligible for dividends Non-Par = Non-Participating; not eligible for dividends |
|
|
|
Earned Surplus |
Earnings not paid it as dividend, but reinvested in the business. |
AKA: retained earnings |
|
|
Life Policy Illustration |
A presentation or depiction that includes both guaranteed and nonguaranteed elements if a life policy over a period of years into the future. Rules: -ensure illustrations do not mislead consumer -ensure illustrations are understandable by prescribing standard formats to be followed -ensure certain required disclosures are specified |
|
|
|
Binding Receipts |
Initial premium must be paid; offices immediate coverage for stated period, which applies even if underwriter declines the application |
|
|
|
Conditional Receipts |
Initial premium must be paid; provides coverage from date of app only if application is ultimately approved by the underwriter |
|
|
|
Binders |
When agreement issued by F&C insurer providing temporary coverage (90 days or less) while an application is being underwritten; NOT used in Life and Disability insurance |
|
|
|
Frequency |
Number of times losses occur over a specified amount of time |
"How Many?" |
|
|
Severity |
Dollar amount of loss |
"How much?" |
|
|
Exposure Unit |
Fixed unit of insurance coverage (usually $100 or $1000) used for pricing |
|
|
|
Rate |
Price of insurance for each exposure unit |
|
|
|
Premium |
= # of exposure units x rate |
|
|
|
Renewal |
Continuation of a policy beyond its original term |
|
|
|
Nonrenewal |
Not renewing a policy for another term once it reaches the end of its term |
|
|
|
Cancellation |
Termination of a policy during its term; can be instituted by insured or insurer |
|
|
|
Earned Premium |
Portion of premium that represents coverage already provided and that belongs to insurer |
|
|
|
Unearned Premium |
Portion if premium that represents the unexpired part of the policy period; must be refunded w/in 25 days after insurer receives notice of cancellation |
|
|
|
Pro-Rata |
100% of the unearned premium |
|
|
|
Short Rate |
Less than 100% of unearned premium; penalizes policyowner for early termination |
|
|
|
Lapse |
Termination of a policy due to nonpayment of premium |
|
|
|
Effective Data Disclosure |
At time of app, agent must provide insured/apparent with: -effective date of coverage (if known) -circumstances under which coverage with be effective |
|
|
|
Pre-Selection |
Agent only collects information requested on the application; must not withhold any pertinent information from underwriter |
|
|
|
Post-Selection |
Underwriter uses information on application; may use urged underwriting tools (MIB, Mexican exams, APS, questionnaires, insurrection reports, etc.) To evaluate and classify risk |
|
