My Life and Health Insurance Study Guide- ExamFX questions with correct answers

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? CORRECT ANSWER Aleatory: an aleatory contract means unequal amounts are exchanged between payments and benefits What is the Federal Credit Reporting Act? CORRECT ANSWER 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? CORRECT ANSWER 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? CORRECT ANSWER 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