Missouri Life and Health Insurance Questions With 100% Correct Answers.

Insurance transaction includes: - By mail or other means: - Solicitation - Negotiation - Sale - Advising an individual about coverage Elements of a legal contract - -Agreement (offer and acceptance) - Consideration - Competent parties - Legal purpose - Negotiation does NOT need to happen Who make the offer in an insurance application - - Applicant When does acceptance take place - - An insurers underwriter approves the application and issues a policy The binding force in any contract - - Consideration - insurer promises to pay in the event of a loss Contract of adhesion - - Prepared by the insurer and accepted or rejected by the insured - "Take it or leave it" basis Insurance contracts are - - Aleatory - exchange of unequal amounts of valuesUnilateral contract - - only one of the parties is legally bound - "one-way contract" "When does an insurance policy go into effect" - - When the insured receives it Conditional contract - - certain conditions must be met by the policy owner Warranty - - An absolutely true statement upon upon which the validity of the insurance policy depends Representions - - Statements believed to be true Misrepresentation - - Untrue statements on the applications - Can void the contract Material misrepresentation - - Would alter the underwriting decision of insurance company Part 1- General Information - - Name, age, address, birth date, gender, income, marital status, and occupation Part 2- Medical Information - - Medical background, present health - Medical visits in recent years - Medical status of relatives/ causes of deaths Field underwriter - - Solicited the potential insured - Analyzes health - Gets info on client Agents report - - Observations concerning the proposed insured- Does not become a part of the entire contract - communicate with underwriter and provide info about the applicant known by the agent Required signatures - - the proposed insured - the agent - the policy owner (if not proposed insured) Changes in the application - - Applicant must initial the change