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