Snapshot Answer Key || All Correct.

What are the four elements of an insurance contract? correct answers Agreement- offer & acceptance, consideration, competent parties, and legal purpose. What does representation mean and how does it differ from warranty? correct answers Representation are statements believe to be true to the best of ones knowledge. A warranty is an absolute true statement upon which the validity of the insurance company depends. How can an insurance company use the information it obtains from MIB? correct answers It can use MIB information to conduct further investigation into an applicant current insurability? What is the purpose of the Fair Credit Reporting Act? correct answers The act established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, relevant , and properly used. It also protects consumers against the circulation of inaccurate or obsolete information. What is the difference between a consumer report and investigative consumer report? correct answers Investigative consumer report are similar to consumer reports in that they also provide information on the consumers, character, reputation, and habits. The primary difference is that the information is obtain through an investigation and interviews with associates, friends, and neighbors of the consumers. According to the HIPAA Privacy Rule, What is protected health information (PHI)? correct answers All individually identifiable health information about the insured, such as demographic data that relates to past, present, or future physical or mental health or conditions pr payment information. In a replacement situation, how long must the current policy remain in force? correct answers The current policy may not be cancelled before the new policy is issued so there is no gap in coverage. Explain the concept of coverage on a first dollar basis. correct answers First dollar coverage does not require the insured to pay a deductible. What coverages are provided by a Major Medical Expense policy? correct answers After basic policy pays, the supplemental major medical will provide coverage for expenses that were not covered by basic policy, and expenses that exceed the maximum. If the time limitation is used up in the basic policy, the supplemental coverage will provide coverage after. Why do HMOs encourage members to get regular checkups? correct answers In this way the HMO hopes to catch disease in its earliest stage when treatments has the greatest chances for success.