Field Underwriting Procedures 3
a life insurance policy has a legal purpose if both of which of the following elements exist: -offer and counteroffer -policy owners and named beneficiaries -insurable interest and consent -underwriting and reciprocity
insurable interest and consent
who makes up the MIB: -former insured -physicians and paramedics -insurers -hospitals
insurers
whose responsibility is it to determine if all of the questions on an application have been answered: -insurer -applicant -beneficiary -agent
the agent
which is true regarding obtaining underwriting sources: -insurer does not need to inform the applicant of how the info is gathered; informing only of the source is sufficient -insurer only needs to inform the applicant of how the information is being gathered; it is not necessary to disclose the sources -it is illegal to obtain information from outside sources in order to determine an applicant's insurability -applicant must be informed of the sources contracted and how the information is being gathered
the applicant must be informed of the sources contacted and how the information is being gathered
when both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is: -conditional -aleatory -personal -unilateral
conditional
what is a material misrepresentation: -any misstatement made by an applicant for insurance -any misstatement by the producer -concealment -a statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
a statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following: -contract of adhesion -acceptance -consideration -legal purpose
consideration
what phase begins after a new policy is delivered: -elimination period -grace period -free look period -insurability period
free look period
when would a misrepresentation on the insurance application be considered fraud: -any misrepresentation is considered fraud -if it is intentional and material -never: statements by the applicant are only representations -when the application is incomplete
if it is intentional and material
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
if only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it: -conditional -legal but unethical contract -unilateral -adhesion
unilateral
which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract: -concealment -indemnity -representation -warranty
warranty
which of the below statements is false regarding the process of completing and signing an application: -only the insured is required to sign the app -if the applicant and the insured are two different people, both need to sign the application -If a policy is issued, the application becomes part of the contract -the application itself is completed by an agent and medical examiner (if required)
only the insured is required to sign the application
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 the coverage
the federal fair credit reporting act: -regulates consumer reports -protects customer privacy -regulates telemarketing -prevent money laundering
regulates consumer reports