TX - Life Section 3 - Application, Underwriting, and Policy Delivery

Medical Information Bureau

A bureau that keeps coded information on the health conditions of individuals who have been insured in the past

Representation

A collateral statement, either by writing nor inserted in the policy or by parol, of such facts or circumstances, relative to the proposed adventure, as are necessary to be communicated to the underwriters, to enable them to form a just estimate of tile risks.

Misrepresentation

A false or misleading statement that, if intentional and materials can allow the insurer to void the insurance contract

Premium Collection and Conditional Receipts

A receipt involved in life and health insurance contracts; if the insured is deemed to be covered by the insurer, the coverage begins on the date the insured receives the conditional binding receipt

Collect on Delivery (COD)

A type of transaction in which payment for a good is made at the time of delivery

Fair Credit Reporting

a U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies

Legal Contract (COAL)

a contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay

Warranties

a guarantee or promise which promise which provides assurance by one party to the other party that specific facts or conditions are true or will happen.

Underwriter

a term used by life insurers to describe the process of assessing risk, ensuring that the cost of the cover is proportionate to the risks faced by the individual concerned.

Fraud

any act committed with the intent to obtain a fraudulent outcome from an insurance process

Insurable Interest

exists when an insured person derives a financial or other kind of benefit from the continuous existence, without impairment or damage, of the insured object

Concealment

the act of purposefully not reporting information that would affect the issuance or rate of an insurance contract

Investor/Stranger Owned

the purchase and subsequent sale of a newly issued life insurance policy to an investor or group of investors who have no insurable interest in the person being insured