EXAMFX Health Insurance: Field Underwriting Procedures
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
Applicant
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
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
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Consumer report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Consumer report
Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as
Contracts of adhesion
Which of the following is NOT an essential element of an insurance contract?
Counteroffer
The Federal Fair Credit Reporting Act
Regulates consumer reports. The Federal Fair Credit Reporting Act regulates consumer reports, also known as consumer investigative reports, or credit reports.
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
Unilateral
On a health insurance application, a signature is required from all the following individuals EXCEPT
the spouse of the policyowner
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
Application
An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?
Ask her to sign a statement of good health
In a replacement situation, all of the following must be considered EXCEPT
Assets
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?
At the time of application
What document describes an insured's medical history, including diagnoses and treatments?
Attending Physician's Statement
When delivering a policy, which of the following is an agent's responsibility?
Collect payment at time of delivery
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
What phase begins after a new policy is delivered?
Free-look period
Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informs the insured of this change, and he accepts it. In response, the agent must
Have the insured sign a statement acknowledging that he is aware of the change.
Under the Privacy rule for HIPAA, protected information includes all individually identifiable health information
In every form // Held or transmitted in any form
A life insurance policy has a legal purpose if both of which of the following elements exist?
Insurable interest and consent
Which of the following entities can legally bind coverage?
Insurer
Who must pay for the cost of a medical examination required in the process of underwriting?
Insurer
If an applicant does not receive a copy of the new insurance policy, who would be held responsible?
The agent
Who responsibility is it to determine if all of the questions on an application have been answered?
The agent
Whose responsibility is it to determine if all of the questions on an application have been answered?
The agent
An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation?
The applicant
Which is true regarding obtaining underwriting sources?
The applicant must be informed of the sources contacted and how the information is being gathered
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.
Which of the following is true about the requirements regarding HIV exams?
The applicant must give prior informed written consent.
On a health insurance application, a signature is required from all of the following individuals EXCEPT
The spouse of the policyowner
What document describes an insured's medical history, including diagnoses and treatments?
An Attending Physician's Statement
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends and neighbors provide the report's data
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued
The insurance policy, together with the policy application and any added riders form what is known as a(n)
entire contract