field Underwriting Procedures

Question 1

elements of a contract

Answer 1

agreement (offer and acceptance)
consideration (something of value that each party gives each other)
competent parties
legal purpose ( Must have insurable interest and consent)

Question 2

insurable interest

Answer 2

Required at the time of policy insurance for health and life

Question 3

conditional

Answer 3

certain conditions must be met by the policy owner and company for the contract to be executed

Question 4

unilateral

Answer 4

the only one of the parties is legally bound to do anything

Question 5

adhesion

Answer 5

prepared by the insurer accepted or denied by insured, insured has little to say about provisions

Question 6

aleatory

Answer 6

exchange of unequal amounts of value

Question 7

completeness and accuracy of application

Answer 7

the agents responsibility to ensure the application is complete and accurate to the best knowledge of the applicant

Question 8

whos signatures are required on contract?

Answer 8

Proposed insured
policy owner ( if different than insured)
agent

Question 9

correct way to make changes to an applications

Answer 9

1. start over with fresh application (best option)
2. draw a line through the wrong answer insert correct one, applicant initials correct answer
   (any changes on the application must be initialed by applicant or insured)

Question 10

premiums with the application

Answer 10

an initial premium and sent with the application
-conditional receipt is given from the agent

Question 11

when does coverage start?

Answer 11

when application is approved and policy issued

Question 12

what is required if premium isn’t collected during application?

Answer 12

premium and statement of continued good health before releasing the policy

Question 13

Medical information Bureau (MIB)

Answer 13

nonprofit trade organization that collect maintain and available to insurance companies

Question 14

who is responsible for the costs of medical exam report?

Answer 14

insurer

Question 15

consumer reports

Answer 15

written or oral info regarding consumers collected by the reporting agency through employment records, credit reports, and other public sources

Question 16

what info is collected in a consumer report?

Answer 16

credit
character
reputation
habits

Question 17

what are the four characteristics of a contract?

Answer 17

adhesion
aleatory
conditional
unilateral

Question 18

whats the best way for accurate information on an applicants medical history?

Answer 18

Attending physician report

Question 19

MIB report

Answer 19

helps insurance companies share adverse medical information of insureds

Question 20

credit reports

Answer 20

contain factors related to a risk’s potential for loss. include consumer reports and investigative consumer reports

Question 21

investigative consumer reports (ICR)

Answer 21

provides info on character, reputation, and habits

Question 22

how is information gathered in an investigative consumer reports?

Answer 22

through investigation and interview with associates, friends, and neighbors

Question 23

when must a consumer be notified of an investigative consumer report?

Answer 23

must have written notice within 3 days of the date the report was requested
(insurance applicants must be notified in writing whenever insurers request investigative consumer reports)

Question 24

when must an applicant receive information found in an investigative consumer report?

Answer 24

5 days upon request

Question 25

who conducts medical exam reports?

Answer 25

physicians, paramedics, certified nurse

Question 26

what are an agent’s responsibilities?

Answer 26

• compare benefits, limitations, and exclusions found in the current and proposed replacement policy
• Ensure that the current policy is not canceled before the new policy is issued

Question 27

types of cost sharing

Answer 27

Deductible, coinsurance

Question 28

Deductible

Answer 28

paid first, set dollar amount, larger the deductible the lower the premium

Question 29

coinsurance

Answer 29

paid after the deductible and after the insurer paid their share, percentage, the higher the coinsurance percentage the lower the premium