VLIFE AND HEALTH LICENSE MAINE
COMPLETE SOLUTION 100% VERIFIED
ANSWERS A+ GRADED FREE
Lapse - policy termination due to nonpayment of premium
Premium - amount paid to the insurance company for the insurance policy
"Insurance Transaction" (by email or other means) - Solicitation
Negotiations
Sale
Advising an individual concerning coverage or claims
Elements of legal contract to be legally binding
(4 Essential elements) - 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
Consideration
(contract) - Is something of value that each party gives to another.
Insured = payment on premium
Insurer = promise to pay in event of loss.
Competent Parties - Must be entering contract in eyes of the law.
-Both parties must be legal age, mentally competent, not under influence of alcohol or drugs.
,Contract of Adhesion - prepared by one party (insurer) and accepted or rejected by the other party.
Aleatory Contract - Means exchange of unequal amounts or values. Premium paid is small in relation to
amount paid by insurer in event of loss.
Unilateral Contract - Only one parties to the contract is legally bound to do anything.
(Insured = no legally binding promises, Insurer promises to pay losses covered by policy)
Conditional Contract - Certain conditions met by policy owner and company in order for the contract to
be executed. (Proof of loss...)
Warranty - Absolutely true statement upon which the validity of insurance policy depends.
Representations - Statements believed to be true to best of one's knowledge.
Misrepresentations & Material Misrepresentations can lead to..... - FRAUD
"Completing application" - 2 basic Parts:
Part 1: general information
Part 2: Medical information
Agent's Report - Provides the agents personal observations concerning the proposed insured.
Changes in Application - Should have applicant initial the change or complete a new application.
Consequences of Incomplete Application - Incomplete then must return it to applicant. If a policy is
issued with questions left, insurer waived it right to have an answer to the question.
, Collecting premium - Whenever agent collects premium, must issue "premium receipt."
"Conditional receipt" is used only when the applicant submits a prepaid application.
Replacement - Terminating policy or letting it lapse, and getting a new one.
Underwriting - Risk selection process. Underwriter responsible for selecting only those risks that are
considered insurable and meet insurer's standards.
Sources of underwriting information - Application
Agent's Report
Investigative Consumer Report (Inspection) - Underwriter can order inspection from investigation firm or
credit agency. (subject to fair credit reporting act)
Fair Credit Reporting Act - est. procedures that consumer-reporting agencies must follow.
Consumer Reports - written / oral information regarding consumers credit, character, reputation, or
habits.
Investigative consumer reports - Similar to Consumer report but use information from friends, neighbors
and associates.
Medical Information Bureau (MIB) - (A nonprofit trade organization) Owned by member insurance
companies, receives medical information from insurance companies and maintains confidential
information.
Medical Examinations - Two kinds:
1. Paramedical report - completed by paramedic or registered nurse.
2. Attending Physician's Statement (APS)
COMPLETE SOLUTION 100% VERIFIED
ANSWERS A+ GRADED FREE
Lapse - policy termination due to nonpayment of premium
Premium - amount paid to the insurance company for the insurance policy
"Insurance Transaction" (by email or other means) - Solicitation
Negotiations
Sale
Advising an individual concerning coverage or claims
Elements of legal contract to be legally binding
(4 Essential elements) - 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
Consideration
(contract) - Is something of value that each party gives to another.
Insured = payment on premium
Insurer = promise to pay in event of loss.
Competent Parties - Must be entering contract in eyes of the law.
-Both parties must be legal age, mentally competent, not under influence of alcohol or drugs.
,Contract of Adhesion - prepared by one party (insurer) and accepted or rejected by the other party.
Aleatory Contract - Means exchange of unequal amounts or values. Premium paid is small in relation to
amount paid by insurer in event of loss.
Unilateral Contract - Only one parties to the contract is legally bound to do anything.
(Insured = no legally binding promises, Insurer promises to pay losses covered by policy)
Conditional Contract - Certain conditions met by policy owner and company in order for the contract to
be executed. (Proof of loss...)
Warranty - Absolutely true statement upon which the validity of insurance policy depends.
Representations - Statements believed to be true to best of one's knowledge.
Misrepresentations & Material Misrepresentations can lead to..... - FRAUD
"Completing application" - 2 basic Parts:
Part 1: general information
Part 2: Medical information
Agent's Report - Provides the agents personal observations concerning the proposed insured.
Changes in Application - Should have applicant initial the change or complete a new application.
Consequences of Incomplete Application - Incomplete then must return it to applicant. If a policy is
issued with questions left, insurer waived it right to have an answer to the question.
, Collecting premium - Whenever agent collects premium, must issue "premium receipt."
"Conditional receipt" is used only when the applicant submits a prepaid application.
Replacement - Terminating policy or letting it lapse, and getting a new one.
Underwriting - Risk selection process. Underwriter responsible for selecting only those risks that are
considered insurable and meet insurer's standards.
Sources of underwriting information - Application
Agent's Report
Investigative Consumer Report (Inspection) - Underwriter can order inspection from investigation firm or
credit agency. (subject to fair credit reporting act)
Fair Credit Reporting Act - est. procedures that consumer-reporting agencies must follow.
Consumer Reports - written / oral information regarding consumers credit, character, reputation, or
habits.
Investigative consumer reports - Similar to Consumer report but use information from friends, neighbors
and associates.
Medical Information Bureau (MIB) - (A nonprofit trade organization) Owned by member insurance
companies, receives medical information from insurance companies and maintains confidential
information.
Medical Examinations - Two kinds:
1. Paramedical report - completed by paramedic or registered nurse.
2. Attending Physician's Statement (APS)
