Chapter 3 Flashcards
a formal written request by the applicant requesting a policy from the insurer is called a
life insurance application
3 components of a life insurance application are:
1.) general information
2.) medical information
3.) agent’s report
The following is which component of a life insurance application:
medical history, present condition, recent surgeries
medical information
The following is which component of a life insurance application:
information that does not end up in the actual policy
agent’s report
The following is which component of a life insurance application:
name, age, address, income, marital status, hobbies, habits
general information
The policy itself, a copy of the application, and any agreed upon riders constitute the entirety of the insurance contract between the insurer and the policyowner is called…?
entire contract
A process of risk selection and classification is called…?
underwriting
Name 5 sources in which underwriters consider information
1.) the application
2.) medical exams and history (APS)
3.) DMV, court records, credit reports
4.) the MIB (medical information bureau)
5.) the agent
The rate at which people die, determines life insurance premiums is called…?
mortality rate
The rate at which disability due to accident or illness occurs, determines health insurance premiums
morbidity rate
The amount of money that state/feds require an insurance company to keep on hand to pay out policies is called
reserves
When coverage is effective as of the date of application, regardless of the applicant’s insurability, this is called…?
binding receipts
When a receipt for the first premium, which states that coverage will begin on that date if the insurance company accepts the risk, this is called…?
conditional receipts
