Texas Life and Health
An agent makes a mistake on the application and then correct his mistake by physically entering the necessary information. Who must then initial that change?
Applicant
Kindra's agent is ready to deliver her policy but has not yet received payment. Upon delivery, the agent collects her premium check, answers any questions that she maybe have, and then leaves. What did he forget to do?
Ask her to sign a statement of good health
An underwriter must review an applicant with an extensive medical history. Which document would give the underwriter a better understanding of how the insured was treated for various illnesses?
Attending Physician's Statement
What document describes an insured's medical history, including diagnoses and treatments?
Attending Physician's Statement
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Beneficiary's consent.
The proposed insured makes the premium on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
Because an insurance policy is a contract between the insure the insurer and the insured, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions.
Contracts that are prepared by one party and submitted to the other party on a "take it or leave it" basis are classified as
Contracts of adhesion
Q was treated for hypertension prior to applying for a major medical policy. As the producer who is writing the replacing policy, what should you tell Q?
His hypertension may be considered a pre-existing condition, and may not be covered under his new policy.
What is a definition of a unilateral contract?
One-sided; only one party makes an enforceable promises
If an applicant does not receive his or her policy, who would be held responsible?
The agent
Mr. R. purchases a health insurance policy for his daughter, who recently graduated from college. The daughter receives the required medical examination, and the insurance application. Who needs to sign the application?
The agent, Mr. R and his daughter
Under what conditions would a contract between an insurer and prospective insured be legal?
The applicant has been convicted of a felony.
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract elements does this describe?
Unilateral
In forming an insurance contract, when does acceptance usually occur?
When an insurer approves a prepaid application