TERMS
Licensed individual that represents an insurance company.
What is Agent/Producer/Field Underwriter
This is an absolute true statement
What is a warranty
Provides basic and generic information about life insurance
Buyer's Guide
Contract is prepared by one party (insurer) and accepted or rejected by the other (insured)
"Take it or leave it"
What is contract of adhesion
Better than average risk, lower premium
What is preferred
Individual that solicits insurance.
What is Insured
A statement believed to be true. "to the best of my knowledge"
What is Representation
These two elements make up the agreement of an insurance contract
What is offer and acceptance
An exchange of UNEQUAL things of value.
What is aleatory
Average risk, the majority of insureds.
What is standard
Company that provides insurance.
What is insurer
False statement that may effect coverage decision
What is a Misrepresentation
Exchange of things of values between the parties. Premium/DB
What is consideration
Only one party is legally obligated to do something. a one sided contract.
What is Unilateral
Poorer than average risk, rated premiums (higher)
What is substandard
Individual that holds the rights in a life policy.
What is policyowner
A statement that is intentionally a lie. May be considered fraud.
What is Material Misrepresentation
Parties entering the contract must be capable of understanding they're entering a legal contract
What is competent parties
Premiums must be paid up to date and proof of loss required to cover a claim.
What is conditional
Risk selection and classification process
What is underwriting
Has to exist at the time of application and before receiving any premium.
What is insurable interest
The transfer of risk is known as
What is Insurance
Requires insurance contracts to be legal and must have insurable interest at the time of application.
What is legal purpose
Issued to client when first month premium is collected with application
Conditional Receipt
Number of parts on an application
What is three
General info, medical info, agent's report