Chapter:Completing the Application,Underwriting,and delivering the policy

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the the report will be obtained?

3 days

Insurance is the transfer of

Risk

When must the policy summary for a life insurance policy be delivered to the policy owner ?

Time of policy delivery

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

5 days

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

5 days

What is a warranty in an insurance contract ?

A true statement which validity of insurance contract is based

Insurance policies are not drawn up through negotiations,and an insured has little to say about it provisions. What contract characteristic does this describe ?

Adhesion

What is the purpose of the agents report during the application process?

Agents personal observations about proposed insured that help in underwriting process

What are the four elements of an insurance contract ?

Agreement(Offer and acceptance),consideration,competent parties,and legal purpose

What is a warranty in an insurance contract ?

An absolutely true statement upon which the validity of the insurance contract is based

When must the policy summary for a life insurance policy be delivered to the policy owner?

At the time of policy delivery

When a change needs to be made on the application for insurance, which is the best method for correcting the information?

Complete new application or ask applicant initial the correction in the original application

Health contracts are prepared by insurers and must be accepted by the insured on an as is basis. This describes what aspect of a health insurance Contract?

Contract of adhesion

At what point does coverage begin when an agent issued a conditional receipt for a life insurance policy ?

Date of application or date of medical exam (Whatever happens last)

At what point does coverage begin when an agent issued a conditional receipt for a life insurance policy ?

Date of application or medical exam

According to the fair credit reporting act, all of the following would be considered negative information about a consumer EXCEPT

Disputes regarding consumer report information

What are the three main instances when insurable interest exist in life insurance ?

Family,There own self, business partners

An insurer receives a report regarding a potential insured that includes the insureds financial status,hobbies and habits. What type of a report is that ?

Inspection report

An insurer receives report regarding a potential insured that includes the insureds (financial status,hobbies and habits.what type of a report is that ?

Inspection report

Stranger-originated life insurance policies are in direct-opposition to the principe of

Insurable interest

What entities make up the medical information bureau?

Insurers

Untrue statements on the application unintentionally made by insured,if discovered would alter underwriting decision of the insurance company, are called

Material misrepresentation

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

Medical information

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages

What is adverse selection?

People who are more likely to submit insurance claims are seeking insurance more often than preferred risk

What is adverse selection?

People who are more likely to submit insurance claims are seeking insurance more often than preferred risk.

What risk classification would typically qualify for lower premiums?

Preferred risk

What is insurance underwriting?

Process of risk selection and classification

The Gramm-Leach Boleyn act was passed to ?

Protect private customer information filed with a financial institution

What is the main responsibility of a company's underwriting unit ?

Risk selection

What are the three types of risk rating classifications in life insurance ?

Substandard ,preferred, standard

What's the purpose of the agents report during the application process?

The agents report discusses observation on proposed insured that help in underwriting

How is the information obtained for an investigative consumer report?

Through interviews with applicants associates,and neighbors

During which stage in the insurance process do insurers evaluate information that identified adverse selection risks?

Underwriting

During which stage in the insurance process do insurers evaluate information that identifies adverse selection risks?

Underwriting

What is the name of the process that insurance companies use to determine whether or not an applicant is insurable?

Underwriting

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur ?

When an insurers underwriter approves coverage

When would a misrepresentation be considered material?

When it affects underwriting decision

When would a misrepresentation be considered material?

When it may alter underwriting decisions

In forming an insurance contact, when does an acceptance usually occur ?

When the insurer approves a prepaid application

If a policy includes a free-look period of at least 10 days, the buyers guide may be delivered to the applicant no later than ?

With the policy