Exam fx texas life and health insurance flashcards (latest ) Rated 100%

What law protects consumers from the circulation of inaccurate or obsolete information? - Answer- The Fair Credit Reporting Act What do individuals use to transfer their risk of loss to a larger group? - Answer- Insurance What term describes the fee a person pays an insurance company to start coverage? - Answer- Premium When a change needs to be made on the application for insurance, which is the best method for correcting the information? - Answer- complete a new application or ask the applicant to initial the corrections on the original application how is the information obtained for an investigative consumer report? - Answer- through interviews with the applicants associates, friends, and neighbors. What risk classification would typically qualify for lower premiums? - Answer- Preferred Risk what are the three risk classifications in life insurance? - Answer- Standard, Substandard, Preferred what is the main responsibility of a company's underwriting unit? - Answer- Risk Selection When would a misrepresentation be considered material? - Answer- when it may alter the underwriting decision What entities make up the Medical Information Bureau? - Answer- Insurers if an applicant for an insurance policy and the potential insured are two different people, what would be the underwriters main concern? - Answer- the existence of insurable interest between the applicant and the insured What is adverse selection? - Answer- People who are more likely to submit insurance claims are seeking insurance more often than preferred risks What type of report provides information about the applicant's hobbies, habits and financial status? - Answer- Inspection report At what point does coverage begin when an agent issues a conditional receipt for a life insurance policy? - Answer- either on the date of the application or the date of the medical exam (whichever occurs last) what is the best way to handle incomplete insurance applications? - Answer- return the application to the applicant for completion when does an insurance policy go into effect? - Answer- When the policy is delivered and the premium is paid what are the three main instances when insurable interest exists in life insurance? - Answer- Insuring your own life, the life of a family member, or the life of a business partner or someone who has a financial obligation to the policyholder. Insurance is a contract that protects the insured from what? - Answer- loss what report is used to assess risk associated with a health insurance applicants lifestyle and