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20 Cards in this Set
- Front
- Back
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What does COAL stand for? |
Elements of a contract. Consideration, Offer, Acceptance, Legal purpose & competent parties |
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Warranty |
Absolutely true statement of what the insurance policy depends. |
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Representations |
Statements believed to be true, not guaranteed |
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Material misrepresentation |
If discovered, would alter the underwriting decision. Intentionally, considered fraud. Material means important |
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Contract of Adhesion |
Prepared by the insurer and accepted by the insured. Offered on a take it or leave it basis |
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Aleatory |
An exchange of unequal amounts/value |
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Unilateral Contract |
Only one part of the party is legally bound |
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To correct a mistake, the applicant must... |
Initial the correct answer |
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A conditional receipt; the agent can or cannot bind coverage? |
They cannot, (can for Life Insurance) |
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Medical Info Bureau |
Source from which the underwriting is gathered, adhering to the Fair Credit Reporting Act. |
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MIB Medical Info Bureau |
Confidential Adverse medical info, owned by insurance companies |
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Fair Credit Reporting Act |
Law that ensures records are confidential, accurate, relevant. |
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Consumer Reports |
Written/oral info regarding a consumer’s credit, character, rep. |
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Privacy Rule for HIPAA |
Protected health info. |
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Investigative reports are obtained via how? When must an insure notify consumer And how long do they have to respond to a consumer regarding their report? |
Friends, co-workers, family & consumer notified in 3 days, responds in 5 days |
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When replacing a policy, it’s important to... |
Not mislead the client or cancel current policy before new policy’s instilled. |
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When’s the earliest day coverage could start? |
Day of the application |
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True or False: insurable Interest must be present at the time of the application and claim. |
False, just at the time of the application. |
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For more expensive policies, underwriter may require a medical exam. The two options are: |
Attending physician statement or paramedical report |
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When does the free look begin and does the agent have to hand deliver it? |
At policy delivery & no |
