Life and Health

Take it or leave it basis contract is called?

Contracts of Adhesion

Which of the following best details the underwriting process for life insurance? A Reporting and rejection of risks B Selection, classification, and rating of risks C Solicitation, negotiation and sale of policies D Issuance of policies

Selection, classification, and rating of risks The underwriting process is accomplished by reviewing and evaluating information about an applicant and applying what is known of the individual against the insurer's standards and guidelines for insurability and premium rates.

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer Report Consumer reports include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Must be informed of the source of the report Under the Fair Credit Reporting Act, if an insurance policy is declined or modified because of information contained in a consumer report, the consumer must be advised and provided with the name and address of the reporting agency.

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has 5 days to provide the consumer with the additional information.

How is it determined whether an insurer is allowed to write business in a state?

The insurers domicile or location of incorporation will determine whether a company is domicile, foreign, or alien.

Who might recieve dividends from a mutual insurer?

Policyholders