Life and Health (part 2)

Conditional

A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies which put the burden of condition on either the insurer or the policyowner

Commingling

A producer who fails to segregate premium monies from his own personal funds is guilty of

Fair Credit Reporting Act

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company

Authorized insurer

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a

Investigation consumer reports

Cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested

Consideration

Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representation made in the application

30

If a licensee changes his or her residence address within how many days must the department be notified

Whether an insurable interest exists between the individuals

If an applicant for a life insurance policy and person to be insured by the policy are two different people the underwriter would be concerned about

Charge a higher premium

If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to

The prospective insured and the insurer

In accordance with Code of Ethics agents must provide a completed application to

24 hours of continuing education in every 2 year period

In order to maintain an insurance license an agent will need to satisfy Florida continuing education requirement of

Lower premiums than a person who receives a standard risk

Lower premium than a person who receives a standard risk

Part 1 of the application

Part 1 of the application includes the general questions about the applicant including name age address birth date gender income marital status and occupation. Medical background is addressed in part 2- medical info

Medical Information Bureau(MIB)

The MIB makes information available to underwriters to assist them in the underwriting process. It is a nonprofit trade organization which receives adverse medical information from insurance companies and maintain confidential medical impairment information on individuals

Application

The application contains most of the information used for underwriting purposes this is why completeness and accuracy are so crucial

Twisting

Twisting is a misrepresentation that persuades an insured or policy owner to his or her detriment to cancel lapse or switch policies

If it is intentional and material

When would a misrepresentation on the insurance application be considered fraud

The trust that a client places in the producer in regards to handling premiums

Which of the following is an example of a producers fiduciary duty