MY LIFE AND HEALTH INSURANCE
STUDY GUIDE- EXAMFX
Anginsuredgpaysgag$100gpremiumgeverygmonthgforghisginsurancegcoverage,gyetgtheginsur
ergpromisesgtogpayg$10,000gforgagcoveredgloss.gWhatgcharacteristicgofganginsurancegcontr
actgdoesgthisgdescribe?g-gans--
Aleatory:gangaleatorygcontractgmeansgunequalgamountsgaregexchangedgbetweengpayme
ntsgandgbenefits
WhatgisgthegFederalgCreditgReportinggAct?g-gans--
Establishesgproceduresgthatgconsumer-
reportinggagenciesgmustgfollowgingordergtogensuregthatgrecordsgaregconfidential,gaccurate,
grelevant,gandgproperlygused.
Alsogprotectsgconsumersgagainstgthegcirculationgofginaccurategorgobsoletegpersonalgorgfin
ancialginformation
Whatgaregconsumergreports?g-gans--Writtengand/
orgoralginformationgregardinggagconsumer'sgcredit,gcharacter,greputation,gorghabitsgcollect
edgbygagreportinggagencygfromgemploymentgrecords,gcreditgreportsgandgothergpublicgsour
ces
Whatgisganginvestigativegconsumergreport?g-gans--
Alsogprovideginformationgongthegconsumer'sgcharacter,greputation,gandghabits,gbutgobtain
edgthroughganginvestigationgandginterviews.
Agreportinggagencygconductsganginvestigationgandginterviewsgassociated,gfriendsgandgnei
ghborsgofgthegconsumer.gThesegreportsgcan'tgbegmadegunlessgthegconsumergisgadvisedg
withing3gdaysgofgthegreportgrequest
Whatghappensgifgsomeonegknowinglygandgwillfullygobtainsginformationgongagconsumergfro
mgagconsumergreportinggagencygundergfalsegpretenses?g-gans--
TheygaregnotgcomplyinggwithgthegFairgCreditgReportinggActgandgmaygbegfinedgand/
orgimprisonedgforgupgtog2gyears
WhatghappensgifgsomeonegunknowinglygviolatesgthegFairgCreditgReportinggAct?g-gans--
Theygbecomegliablegingthegamountgequalgtogtheglossgtogthegconsumergasgwellgasganygreas
onablegattorneygfeesgincurredgingthegprocess
,WhatghappensgwhengsomeonegwillfullygviolatesgthegActgenoughgtogconstitutegaggeneralgp
atterngorgbusinessgpractice?g-gans--Theygaregsubjectgtogagpenaltygofgupgtog$2,500
Whatgrightsgdoesgagconsumerghavegifganginsurancegpolicygisgdeclinedgorgmodifiedgbecaus
egofginformationgcontainedgingeithergconsumergreport?g-gans--
Mustgbegadvisedgandgprovidedgwithgthegnamegandgaddressgofgthegreportinggagency
Hasgthegrightgtogknowgwhatgwasgingthegreport
Hasgthegrightgtogknowgthegidentitygofganyonegwhogreceivedgagcopygofgthegreportgduringgthe
gpastgyear.
Hasgthegrightgtogchallengeganyginformationgingthegreportgandgthegagencygisgrequiredgtogrei
nvestigategandgamendgthegreport.
Ifgthegreportgisgfoundgtogbegwrong,gitgmustgbegcorrectedgandgsentgoutgtogallgpartiesgthatgha
vegreceivedgagreportging2gyears.
WhatgisgMIB?g-gans--ThegMedicalgInformationgBureaug(MIB)g
Agmembershipgcorportationgownedgbygmemberginsurancegcompanies.gIt'sgagnonprofitgtra
degorganizationgwhichgreceivesgmedicalginformationgfromginsurancegcompaniesgandgmai
ntainsgconfidentialginformationgongindividuals.
Itgisgonlygusedgasgagwaygtogcomparegtheginformationgyoughavegwithgotherginsurancegcomp
aniesgandgseegwheregyougneedgtoglookgintogmore.gAgpolicygcannotgbegdeniedgsolelygbeca
usegofgthesegreports
WhatgisgHIPAA?g-gans--ThegHealthgInsurancegPortabilitygandgAccountabilitygAct
Agfederalglawgthatgprotectsghealthginformation.gProvidegprotectiongforgthegprivacygofgcertai
ngindividuallygidentifiableghealthginformation
Whatgaregpreferredgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Preferredgrisksgaregindividualsgwhogmeetgcertaingrequirementsgandgqualifygforglowergprem
iumsgthangthegstandardgrisk.gTheyghavegsuperiorgphysicalgcondition,glifestyle,gandghabits
Whatgaregstandardgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Standardgrisksgaregentitledgtoginsurancegprotectiongwithoutgextrgratinggorgspecialgrestrictio
ns.gTheygaregrepresentativegofgthegmajoritygofgpeoplegtheirgagegandgwithgsimilarglifestyles,
gaveragegrisk.
Whatgaregsubstandardgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Substandardg(highgexposure)garegnotgacceptablegatgstandardgratesgbecausegogphysicalgc
ondition,gpersonalgorgfamilyghistorygofgdisease,goccupation,gorgdangerousghabits
Alsogreferredgtogasg"rated"gbecausegtheygcouldgbegissuedgthegpremiumg"ratedgup",gorghig
her.
, Whatgaregdeclinedgrisks?g-gans--Peoplegwhogaregrejectedgfromglifeginsurance
Agriskgmaygbegdeclinedgbecausegtheregisgnoginsurableginterest,gthegapplicantgisgmedicallyg
unacceptable,gthegpotentialgforglossgisgsoggreatgitgdoesgnotgmeetgthegdefinitiongforginsuran
ce,gandgtheginsurancegisgprohibitedgbygpublicgpolicygorgisgillegal
WhatgisgSTOLI?g-gans--Stranger-originatedglifeginsuranceg
Aglifeginsurancegarrangementgingwhichgagpersongwithgnogrelationshipgtogtheginsuredgpurch
asesgaglifegpolicygongtheginsured'sglifegwithgthegintentgofgsellinggthegpolicygtoganginvestorga
ndgprofitinggfinanciallygwhengtheginsuredgdies.
STOLIsgviolategthegprinciplegofginsurableginterest
Whengdoesgcoveragegbegin?g-gans--
Ifgpaymentgisgcollectedgatgthegtimegofgapplication,gitgbeginsgongthegdategofgthegapplication.
Ifgagpaymentghasgnotgbeengreceived,gitgmustgbegreceivedgwhengthegpolicygisgdeliveredgan
dgthengthegstartgdategisgthegdategofgdelivery
WhatgisgthegUSAgPATRIOTgAct?g-gans--
ThegUnitinggandgStrengtheninggAmericagbygProvidinggAppropriategToolssgRequiredgtogInt
erceptgandgObstructgTerrorismgAct.
EnactedgongOct.g26,g2001
Purposegisgtogaddressgsocial,geconomic,gandgglobalginitiativesgtogfightgandgpreventgterrori
stgactivities
Whatgaregtheg3gkeygfactorsgforglifeginsurance?g-gans--Mortality,ginterestgandgexpense
Agpersongwhogdoesgnotglockgthegdoorsgtogtheirghousegshowsgangindifferentgattitude.gThisg
persongpresentsgwhatgtypegofghazard?g-gans--Morale
Whatgaregthegfourgaspectsgofganginsurancegcontract?g-gans--
Agreement,gconsiderations,gcompetentgparties,gandglegalgpurpose
Angapplicantgconcealsgrelevantghealthginformationgongthegapplication.gThegapplicantgpres
entsgwhatgtypegofghazard?g-gans--Moral
Whatgaregthegthreegtypesgofgagentgauthority?g-gans--Expressed,gimplied,gandgapparent
Whatgaregthegfivegcharacteristicsgofgangideallyginsurablegrisk?g-gans--
Lossgmustgbegduegtogchance,gdefinitegandgmeasurable,gstatisticallygpredictable,gnotgcatas
trophic,gandgcoveragegcannotgbegmandatory
Insurersgaregclassifiedgaccordinggtogtheirgdomicile.gWhatgaregthegthreegtypesgofginsurers?
g-gans--Domestic,gforeigngandgalien
Whatgtypegofgriskgisggambling?g-gans--Speculativegandgcannotgbeginsured.
STUDY GUIDE- EXAMFX
Anginsuredgpaysgag$100gpremiumgeverygmonthgforghisginsurancegcoverage,gyetgtheginsur
ergpromisesgtogpayg$10,000gforgagcoveredgloss.gWhatgcharacteristicgofganginsurancegcontr
actgdoesgthisgdescribe?g-gans--
Aleatory:gangaleatorygcontractgmeansgunequalgamountsgaregexchangedgbetweengpayme
ntsgandgbenefits
WhatgisgthegFederalgCreditgReportinggAct?g-gans--
Establishesgproceduresgthatgconsumer-
reportinggagenciesgmustgfollowgingordergtogensuregthatgrecordsgaregconfidential,gaccurate,
grelevant,gandgproperlygused.
Alsogprotectsgconsumersgagainstgthegcirculationgofginaccurategorgobsoletegpersonalgorgfin
ancialginformation
Whatgaregconsumergreports?g-gans--Writtengand/
orgoralginformationgregardinggagconsumer'sgcredit,gcharacter,greputation,gorghabitsgcollect
edgbygagreportinggagencygfromgemploymentgrecords,gcreditgreportsgandgothergpublicgsour
ces
Whatgisganginvestigativegconsumergreport?g-gans--
Alsogprovideginformationgongthegconsumer'sgcharacter,greputation,gandghabits,gbutgobtain
edgthroughganginvestigationgandginterviews.
Agreportinggagencygconductsganginvestigationgandginterviewsgassociated,gfriendsgandgnei
ghborsgofgthegconsumer.gThesegreportsgcan'tgbegmadegunlessgthegconsumergisgadvisedg
withing3gdaysgofgthegreportgrequest
Whatghappensgifgsomeonegknowinglygandgwillfullygobtainsginformationgongagconsumergfro
mgagconsumergreportinggagencygundergfalsegpretenses?g-gans--
TheygaregnotgcomplyinggwithgthegFairgCreditgReportinggActgandgmaygbegfinedgand/
orgimprisonedgforgupgtog2gyears
WhatghappensgifgsomeonegunknowinglygviolatesgthegFairgCreditgReportinggAct?g-gans--
Theygbecomegliablegingthegamountgequalgtogtheglossgtogthegconsumergasgwellgasganygreas
onablegattorneygfeesgincurredgingthegprocess
,WhatghappensgwhengsomeonegwillfullygviolatesgthegActgenoughgtogconstitutegaggeneralgp
atterngorgbusinessgpractice?g-gans--Theygaregsubjectgtogagpenaltygofgupgtog$2,500
Whatgrightsgdoesgagconsumerghavegifganginsurancegpolicygisgdeclinedgorgmodifiedgbecaus
egofginformationgcontainedgingeithergconsumergreport?g-gans--
Mustgbegadvisedgandgprovidedgwithgthegnamegandgaddressgofgthegreportinggagency
Hasgthegrightgtogknowgwhatgwasgingthegreport
Hasgthegrightgtogknowgthegidentitygofganyonegwhogreceivedgagcopygofgthegreportgduringgthe
gpastgyear.
Hasgthegrightgtogchallengeganyginformationgingthegreportgandgthegagencygisgrequiredgtogrei
nvestigategandgamendgthegreport.
Ifgthegreportgisgfoundgtogbegwrong,gitgmustgbegcorrectedgandgsentgoutgtogallgpartiesgthatgha
vegreceivedgagreportging2gyears.
WhatgisgMIB?g-gans--ThegMedicalgInformationgBureaug(MIB)g
Agmembershipgcorportationgownedgbygmemberginsurancegcompanies.gIt'sgagnonprofitgtra
degorganizationgwhichgreceivesgmedicalginformationgfromginsurancegcompaniesgandgmai
ntainsgconfidentialginformationgongindividuals.
Itgisgonlygusedgasgagwaygtogcomparegtheginformationgyoughavegwithgotherginsurancegcomp
aniesgandgseegwheregyougneedgtoglookgintogmore.gAgpolicygcannotgbegdeniedgsolelygbeca
usegofgthesegreports
WhatgisgHIPAA?g-gans--ThegHealthgInsurancegPortabilitygandgAccountabilitygAct
Agfederalglawgthatgprotectsghealthginformation.gProvidegprotectiongforgthegprivacygofgcertai
ngindividuallygidentifiableghealthginformation
Whatgaregpreferredgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Preferredgrisksgaregindividualsgwhogmeetgcertaingrequirementsgandgqualifygforglowergprem
iumsgthangthegstandardgrisk.gTheyghavegsuperiorgphysicalgcondition,glifestyle,gandghabits
Whatgaregstandardgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Standardgrisksgaregentitledgtoginsurancegprotectiongwithoutgextrgratinggorgspecialgrestrictio
ns.gTheygaregrepresentativegofgthegmajoritygofgpeoplegtheirgagegandgwithgsimilarglifestyles,
gaveragegrisk.
Whatgaregsubstandardgrisks?g-gans--
Agriskgclassificationgusedgwhengdeterminingghowgmuchgriskgagconsumergisgandghowgmuc
hgtheirgpremiumgshouldgbe
Substandardg(highgexposure)garegnotgacceptablegatgstandardgratesgbecausegogphysicalgc
ondition,gpersonalgorgfamilyghistorygofgdisease,goccupation,gorgdangerousghabits
Alsogreferredgtogasg"rated"gbecausegtheygcouldgbegissuedgthegpremiumg"ratedgup",gorghig
her.
, Whatgaregdeclinedgrisks?g-gans--Peoplegwhogaregrejectedgfromglifeginsurance
Agriskgmaygbegdeclinedgbecausegtheregisgnoginsurableginterest,gthegapplicantgisgmedicallyg
unacceptable,gthegpotentialgforglossgisgsoggreatgitgdoesgnotgmeetgthegdefinitiongforginsuran
ce,gandgtheginsurancegisgprohibitedgbygpublicgpolicygorgisgillegal
WhatgisgSTOLI?g-gans--Stranger-originatedglifeginsuranceg
Aglifeginsurancegarrangementgingwhichgagpersongwithgnogrelationshipgtogtheginsuredgpurch
asesgaglifegpolicygongtheginsured'sglifegwithgthegintentgofgsellinggthegpolicygtoganginvestorga
ndgprofitinggfinanciallygwhengtheginsuredgdies.
STOLIsgviolategthegprinciplegofginsurableginterest
Whengdoesgcoveragegbegin?g-gans--
Ifgpaymentgisgcollectedgatgthegtimegofgapplication,gitgbeginsgongthegdategofgthegapplication.
Ifgagpaymentghasgnotgbeengreceived,gitgmustgbegreceivedgwhengthegpolicygisgdeliveredgan
dgthengthegstartgdategisgthegdategofgdelivery
WhatgisgthegUSAgPATRIOTgAct?g-gans--
ThegUnitinggandgStrengtheninggAmericagbygProvidinggAppropriategToolssgRequiredgtogInt
erceptgandgObstructgTerrorismgAct.
EnactedgongOct.g26,g2001
Purposegisgtogaddressgsocial,geconomic,gandgglobalginitiativesgtogfightgandgpreventgterrori
stgactivities
Whatgaregtheg3gkeygfactorsgforglifeginsurance?g-gans--Mortality,ginterestgandgexpense
Agpersongwhogdoesgnotglockgthegdoorsgtogtheirghousegshowsgangindifferentgattitude.gThisg
persongpresentsgwhatgtypegofghazard?g-gans--Morale
Whatgaregthegfourgaspectsgofganginsurancegcontract?g-gans--
Agreement,gconsiderations,gcompetentgparties,gandglegalgpurpose
Angapplicantgconcealsgrelevantghealthginformationgongthegapplication.gThegapplicantgpres
entsgwhatgtypegofghazard?g-gans--Moral
Whatgaregthegthreegtypesgofgagentgauthority?g-gans--Expressed,gimplied,gandgapparent
Whatgaregthegfivegcharacteristicsgofgangideallyginsurablegrisk?g-gans--
Lossgmustgbegduegtogchance,gdefinitegandgmeasurable,gstatisticallygpredictable,gnotgcatas
trophic,gandgcoveragegcannotgbegmandatory
Insurersgaregclassifiedgaccordinggtogtheirgdomicile.gWhatgaregthegthreegtypesgofginsurers?
g-gans--Domestic,gforeigngandgalien
Whatgtypegofgriskgisggambling?g-gans--Speculativegandgcannotgbeginsured.
