Life and Health (part 2)
Conditional
A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies which put the burden of condition on either the insurer or the policyowner
Commingling
A producer who fails to segregate premium monies from his own personal funds is guilty of
Fair Credit Reporting Act
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company
Authorized insurer
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a
Investigation consumer reports
Cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested
Consideration
Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representation made in the application
30
If a licensee changes his or her residence address within how many days must the department be notified
Whether an insurable interest exists between the individuals
If an applicant for a life insurance policy and person to be insured by the policy are two different people the underwriter would be concerned about
Charge a higher premium
If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to
The prospective insured and the insurer
In accordance with Code of Ethics agents must provide a completed application to
24 hours of continuing education in every 2 year period
In order to maintain an insurance license an agent will need to satisfy Florida continuing education requirement of
Lower premiums than a person who receives a standard risk
Lower premium than a person who receives a standard risk
Part 1 of the application
Part 1 of the application includes the general questions about the applicant including name age address birth date gender income marital status and occupation. Medical background is addressed in part 2- medical info
Medical Information Bureau(MIB)
The MIB makes information available to underwriters to assist them in the underwriting process. It is a nonprofit trade organization which receives adverse medical information from insurance companies and maintain confidential medical impairment information on individuals
Application
The application contains most of the information used for underwriting purposes this is why completeness and accuracy are so crucial
Twisting
Twisting is a misrepresentation that persuades an insured or policy owner to his or her detriment to cancel lapse or switch policies
If it is intentional and material
When would a misrepresentation on the insurance application be considered fraud
The trust that a client places in the producer in regards to handling premiums
Which of the following is an example of a producers fiduciary duty