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;
26 Cards in this Set
- Front
- Back
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
|
--lapsed, terminated
--reissued with reduction in value --converted to reduce paid up insurance --pledged as collateral --amended to reduce benefits or term of coverage |
|
each producer who sends in an application must submit the following also:
|
--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 |
|
Where a replacement is involved, producer must do the following:
|
--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 |
|
How many days does a replacing insurance company have to notify existing ins. co. of proposed replacement
|
5 days from date of application
|
|
If an insurer plans to seed and use information from investigators, they must provide applicant with a written
|
Disclosure Authorization Notice
|
|
the process in which an insurance company determines whether or not a particular applicant is insurable
|
underwriting
|
|
Who is the field underwriter
|
agent
|
|
Responsibilities of field underwriter:
|
--proper solicitation of applicants
--completing the application --obtaining signatures --collect premium and issue receipt --deliver policy |
|
If a policy is issued with questions left unanswered, the contract will be interpreted as
|
the insurer waiving its right to answer the question and barred from any right of denying coverage based on unanswered question
|
|
risk which are more likely to suffer a loss
|
adverse selection
|
|
Primary criteria underwriters will use in assessing an applicants desirability
|
health (past and current)
occupation lifestyle hobbies and habits |
|
what is the starting point and basic source of information used by underwriters
|
application
|
|
three basic sections of an application
|
general information
medical information Agents report |
|
what does not become a part of the entire contract
|
The agent's report
|
|
What does a contract consist of?
|
Policy and application
|
|
Who must sign application
|
Applicant and agent
|
|
When does a policy go into affect?
|
premium is paid and
deliver of policy |
|
When agent collects premium what should be issued?
|
premium receipt
|
|
three types of premium receipts? most common
|
--conditional receipt
--approval conditional receipt --unconditional receipt conditional receipt |
|
When the insurer relinquishes control of the policy by mailing it to the policyowner
|
constructive delivery
|
|
a statement that is signed by insured attesting to their continued good health since application to deliver of policy
|
statement of good health
|
|
When an agent delivers the policy by hand to policyowner what must be signed?
|
delivery receipt
|
|
a statement usually obtained from the applicant's doctor
|
attending physician statement
|
|
a non profit trade organization which receives adverse medical information from insurance companies
|
Medical Information Bureau (MIB)
|
|
What does underwriters do with the information obtained from Medical Information Bureau?
|
a client can not be refused because of the report but must further investagate applicant's insurability
|
|
Three rating classifications
|
substandard
standard preferred |