Life and Health Insurance Study GuideExamFX | 100% Correct Answers | Verified | Latest 2024 Version

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? - Aleatory: an aleatory contract means unequal amounts are exchanged between payments and benefits What is the Federal Credit Reporting Act? - Establishes procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used. Also protects consumers against the circulation of inaccurate or obsolete personal or financial information What are consumer reports? - Written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports and other public sources What is an investigative consumer report? - Also provide information on the consumer's character, reputation, and habits, but obtained through an investigation and interviews. A reporting agency conducts an investigation and interviews associated, friends and neighbors of the consumer. These reports can't be made unless the consumer is advised within 3 days of the report request What happens if someone knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses? - They are not complying with the Fair Credit Reporting Act and may be fined and/or imprisoned for up to 2 years What happens if someone unknowingly violates the Fair Credit Reporting Act? - They become liable in the amount equal to the loss to the consumer as well as any reasonable attorney fees incurred in the processWhat happens when someone willfully violates the Act enough to constitute a general pattern o