1
Transfer of risk of loss from an individual to the company
What is insurance?
Must exist between policy owner and insured at the time of application.
What is insurable interest?
When the underwriter approves the application and issues the policy.
What is acceptance?
An agreement between two or more parties enforceable by law
What is a contract?
When the application for life insurance is submitted.
What is offer?
What is aleatory?
The binding force in the contract; something of value that each party gives to the other.
What is consideration?
The only person(people) insurable interest is not required for.
What is the beneficiary(beneficiaries)?
Certain conditions must be met for the contract to be executed.
What is conditional?
Parties of the contract must be capable of entering into a contract in the eyes of the law.
What is competent parties?
What is unilateral? (For extra 100, insurer)
Contract is prepared by one part and accepted or rejected by the other. Contract has no negotiation. Always settled in favor of the insured.
What is adhesion?
The two parts of a life insurance application.
What is general information and medical information?
The 3 types of risk classifications.
What is preferred, standard and substandard?
Described each for an extra 100 points each.
Written statement describing features and elements of the policy being issued. Must include agents name, home office of insurer, and generic name of basic policy and each rider. Also must be given to the insured when the policy is delivered.
Federal law that protects consumers against the circulation of inaccurate information.
What is Fair Credit Reporting act?
Information obtained through an investigation and interviews with associates, neighbors, friends. Must be advised in writing within 3 days of the date the report was requested.
What is investigative consumer report? (How long does insurer have to provide Information for extra 100)
Penalty for person who willfully violates the FCRA enough to constitute a general pattern or business practice.
What is $2,500?
Must be provided to all applicants prior to accepting their initial premium.
What is buyer's guide?
Information about a consumer's credit, character, reputation, or habits collected by a reporting agency.
What is consumer report?
Used when applicant submits the premium with the application; states that coverage will be effective either on the date of the application or date of the medical exam.
What is conditional receipt?
Nonprofit trade organization that collects adverse medical information from insurers; applicants cannot be refused coverage solely based on the basis of information from this source.
What is Medical Information Bureau?
Allows agent to communicate with underwriter and provide information that may assist in the underwriting process.
What is agent's report?
This person solicits the sale, meets with the client, completes the application and delivers the policy.
What is the field underwriter?
For policies with higher coverage amounts or additional health concerns.
What is Paramed or medical exam?