Primerica Life Insurance Exam Manual Colorado Chapter 1

Agents Report - answer-Personal Observations Aleatory Contract - answer-Exchange of unequal amounts of values Application - answer-The main source of underwriting Attending Physician's Statement (APS) - answer-Doctor's Records Needs written consent Beneficiary - answer-Insured Buyers Guide - answer-Basis and Generic information about life insurance policies offered at the time of application Competent Parties - answer-Parties to a contract must be capable of entering a contract Conditional Contract - answer-Requires that certain conditions must be met Conditional Receipt - answer-If they submit a prepaid application and the policy is issued as applied for, coverage will be effective on the date of the medical exam. Consequence of Incomplete Application - answer-Delay of coverage and need to redo application Consideration - answer-Something of value that each party gives to the other The Binding force in any contract Consumer Reports - answer-Agent asks neighbors / family about consumer on high profile cases Contract of Adhesion - answer-Take it or leave it Effective Date of Coverage - answer-When they paid is when they are covered Factors in Premium Determination - answer-Risk - already determined Interest - How much can the company get sooner Expense - How much is the company paying people to operate Fair Credit Reporting Act - answer-Protects consumers against fraud Field Underwriter - answer-Agent General Information - answer-Name, age, address, date of birth, gender, income, marital status, occupation, ect. HIPPA - answer-Health Information Insurable Interest - answer-Blood and Money at the time of application Insurance Company - answer-Insurer Investigative Consumer Reports - answer-Unknowingly violates Fair credit reporting act - liable in the amount equal to the loss of the consumer Willfully - Penalty of up to $2500 Consumer has the right to know what was in the report Legal Purpose - answer-Purpose of contract is legal and not against public policy Medical Information - answer-Med background, present healthy, medical visits, medical status of living relatives, causes of deaths of relatives, ect. Medical Information Bureau (MIB) - answer-Medical Database Misrepresentation - answer-False statements that aren't always legally binding Material Misrepresentation - Will most likely void the contract Offer and Acceptance - answer-Offer - Application Acceptance - Issued Policy Paramedical Report - answer-Completed by a registered nurse Policy Owner - answer-Payer of Premium Policy Summary - answer-Describing the features and elements of the policy Preferred - answer-Meets requirements for lower premiums Premium Payment Mode - answer-The frequency the policy owner pays the premium Premium Receipt - answer-Receipt for Policy Representation - answer-Statements believed to be true by the applicant Required Signatures - answer-Agent and proposed insured (applicant) Solicitation of Insurance - answer-An attempt to persuade a person to buy an insurance policy Standard - answer-Average person without a large amount of risk