FX Health question Ch 2

5 days

Consumer request additional info concerning an investigative consumer report how long does the insurer or reporting agency have to comply?

Keep insurance companies from adverse selection by high risk persons

Medical Info. Bureau (MIB) created to

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial inso?

The Fair Credit Reporting Act

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy which of the following insurance principles has the insurer violated

Consideration

Insured Neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer VIOLATED

Consideration

The proposed insured makes the premium payment on a new insurance policy. If the insurer should die the insurance will pay the death beneficiary if the policy is approved. This is an example of what kind of contract.

Conditional

Aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the ins. company

Insurer

legally bind coverage

3 Days

Within how many days of requesting an Investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

insurable interest and consent

exist if a life insurance policy has a legal purpose

Attending Physician Statement

insured medical history with diagnosis and treatments

Contracts that are prepared by one party and submitted to the other as take it or leave it basis are classified as

Contracts of Adhesion

A life insurance policy has a legal purpose if both of which of the following elements exist

Insurable interest and consent

Premiums always stay the same

Underwriting is a mojor consideration when an insured wishes to replace her current policy for all of the following reason EXCEPT

Consideration

premiums and representations on the part of the insured; payments of claims on the part of the insured

Insurable interest

described the applicant must experience a financial loss when the insured is hurt or sick insurable interest is only needed by the applicant and only at the time of application

An insurance contract must contain all of the following to be considered legally binding EXCEPT

Beneficiary's consent

An insurance contract does not contain _______ to be considered legally binding.

Beneficiarys consent

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable the contract is A: personal - b. unilateral - c. conditional D. aleatory

Conditional

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy Which of the following insurance principles has the ins. violated. A. consideration. b. good faith. c. representation. D. Adhesion

Consideration

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basic are classified as - A. contracts of adhesion. B. unilateral contracts. C. aleatory contracts. D binding contracts

Contracts of adhesion

Adhesion

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe

Insurable interest can be best described by which of the following?

The applicant must experience a financial loss due to an accident or sickness that befalls the insured

In forming an insurance contract when does acceptance usually occur A. when an insured submits an application. b. when an insurer's underwriter approves coverage, c. when an insurer delivers the policy d. when an insurer receives an application

When an insurer's underwriter approves coverage

Conditional

both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable

Insurance policy - application - rider - is

entire contract