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17 Cards in this Set
- Front
- Back
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Agreement |
Offer and acceptance |
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Consideration |
The binding force in any cintract. Premiums are representation on the part of the insured; payment of claims on the part of the insurer |
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The 4 pieces of a contract |
- Agreement - Consideration - Competent Parties - Legal Purpose |
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Competent Parties |
- Legal Age - Sound Mind - Consenting - Not under the influence |
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Warranty |
Absolutely true statement on which the validity of the policy depends. |
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Representations |
Statements that are believed to be true |
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Adhesion |
One party prepared the contract, the other party just accept it as is. Contract is offered on a take it or leave it basis |
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Aleatory |
Uneven exchange of values |
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Notice to the applicant |
Notice must be given to the applicant about a credit check and seeking approval for the insurance policy. |
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Fair Credit Reporting Act |
Protects consumer |
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Legal Purpose |
Not against public policy |
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Unilateral |
Only one of the parties to the contract is legally bound to do anything. |
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Attending Physician Report (APS) |
Best for accurate information on the applicant's medical history. If the underwriter deems it necessary, an APS will be sent to the applicant's doctor to be completed. Doctor can explain exactly what patient was treated forz the treatment required, the length of treatment and recovery, and prognosis. |
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Medical Information Bureau (MIB) Report |
Helps companies share adverse medical information on insureds. Insurers CANNOT refuse coverage solely on the basis of the MIB report. |
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Credit reports |
Contain factors related to a risk's potential for loss. Include consumer reports and investigative consumer reports. Investigative consumer reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date that the report was requested. |
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Medical Exam Report |
Conducted by physicians or paramedics |
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Underwriting |
It is the underwriters duty to evaluate risk and decide whether or not a person is eligible for coverage When replacement is involved the insured may be under the assumption that are replacing policy is in his / her best interests but after being evaluated by an underwriter or premium and risk are exchanged and insured may not be paying the same premium or receiving the same benefits. |
