Unit 7 - Life & Health

What is required to complete a life insurance policy transaction?

Policy must be delivered to policyowner insurer must issue policy premium must be paid

Insured's health insurance policy requires payment of a sum of money for the policy to be effective. what is this sum of money called?

Premium

within how many days of notification of death must a life insurance claim typically be paid?

60 days

What type of receipt says if initial premium is paid with application and applicant satisfies all of the conditions then coverage takes effect just af if the policy had already been issued.

Conditional Receipt

When is effective date if no premium is paid at application time?

Date that the policy was issued

When is effective date of coverage when premium is collected at time of application?

Effective date is the date of appli8cation or medical exam

When does accident coverage take effect when policy is issued?

Immediately

When can insurance company deny a claim?

If life insurance application was sent to insurer with no premium, insurer declined the application. before the applicant was notified of decision, the insured died.

An application was sent to insurer with no premium payment. the policy was issued and at deliver, the premium was paid. in context of legal contracts, in this transaction, who made an offer?

Insurer

When does sickness coverage take effect?

May require a probationary period

No Loss/No Gain

Require benefits for ongoing (disability) claims that started under an old plan to continue without imposing the new plan's eligibility requirements.

If insured died during the life insurance underwriting process, which insured risk classification will receive the most benefit of a conditional receipt?

Standard or better if proposed insurted dies before policy is issed.

What is required at policy delivery?

conditional receipt for premium paid statement of good health.

What is function of an underwriter?

protect insurer from adverse selection.

Binding Receipt

provide coverage for a specified time or until insurer issues or rejects the policy.

A life insurance agent is recommending to an existing life insurance client to convert an existing policy to reduced paid-up insurance and buy a new policy, this act is

replacement

What is the responsibility of the producer at the delivery of a health insurance policy?

review the policy, riders and exclusions with the policyowner