Field Underwriting Procedures 2
which of the following would qualify as a competent party in an insurance contract: -applicant is intoxicated at the time of app -applicant is a 12 year old student -applicant is under the influence of a mind impairing medication at the time of app -applicant has a prior felony conviction
applicant has a prior felony conviction
what is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided: -application -policy request -insurance request form -request for insurance
application
an insurance contract must contain all of the following to be considered legally binding except: -competent parties -beneficiary's consent -offer and acceptance -consideration
beneficiary's consent
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. which of the following insurance principles has the insurer violated: -representation -adhesion -consideration -good faith
consideration
representations are written or oral statements made by the applicant that are: -guaranteed to be true -found to be false after further investigation -immaterial to the actual acceptability of the insurance contract -consider true to the best of the applicant's knowledge
considered true to the best of the applicant's knowledge
contracts that are prepared by one party and submitted to another party on a take it or leave it basis are classified as: -aleatory contracts -binding contracts -contracts of adhesion -unilateral contracts
contracts of adhesion
the MIB was created to protect: -insurance departments from lawsuits by policy owners -insureds from unreasonable underwriting requirements by the insurance companies -medical examiners that perform insurance physical exams -insurance companies from adverse selection by high risk persons
insurance companies from adverse selection by high risk persons
an applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. she receives a conditional receipt two weeks later. which of the following has the insurer done by this point: -approved the application -issued the policy -neither approved the application nor issued the policy -both approved the application and issued the policy
neither approved the application nor issued the policy
what is a definition of a unilateral contract: -two or more parties go into a contract understanding there may be an unequal exchange of value -one author: the company wrote the contract; the insured must accept it as written -if one party makes a condition, the other party can counteroffer -one sided: only one party makes an enforceable promise
one sided: only one party makes an enforceable promise
the federal fair credit reporting act: -regulates telemarketing -prevents money laundering -regulates consumer reports -protects consumer privacy
regulates consumer reports
which of the following would provide an underwriter with information concerning an applicant's health history: -inspection report -MIB -medical exam -agent's report
the MIB
whose responsibility is it to determine if all of the questions on an application have been answered: -insurer -applicant -beneficiary -agent
the agent
insurable interest can be best described by which of the following: -insured must be genuinely interested in the life of the applicant -all beneficiaries need to have notification of their status -it is not necessary for the insured to be aware of the insurable interest or give permission for the insurance that is to be written -the applicant must experience a financial loss due to an accident or sickness that befalls the Insured
the applicant must experience a financial loss due to an accident or sickness that befalls the insured
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 element does this describe: -conditional -unilateral -unidirectional -aleatory
unilateral
in forming an insurance contract, when does acceptance usually occur: -when an insured submits an app -when an insurer's underwriter approves coverage -when an insurer delivers the policy -when an insurer receives an application
when an insurer's underwriter approves coverage