Feild underwriting procedures

An insurer neglects to pay a legitimate claim that is covered under the term of the policy. Which of the following insurance principles has the insurer violated?

Consideration

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

When an insurer's underwriter approves coverage

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Which of the following best describes the aleatory nature of insurance contract?

Exchange of unequal values

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

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

Material misrepresentations (a material misrepresentation is statement that, if discovered, would alter the underwriting decision of the insurance company.)

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

conditional

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must the initial the change?

Applicant ( Any changes made to the application must be initiated by the applicant)

What document describes an insured's medical history, including diagnoses and treatment

Attending physician's statement

Who must pay for the cost of medical examination required in the process of underwriting?

insurer