CT LIfe and Health Exam Chapter 3
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13 terms
Terms | Definitions |
|---|---|
 MIB | A clearing house of health information supplied by insurers from information on applications. Contains information about the applicants previous health history. |
| Unearned income | Age, occupation and family health history are all factors which affect life insurance risk. Something like this does not affect the risk. |
| Accept the risk and rate up the premium | If an applicant for life insurance is considered a substandard risk by an insurer but still insurable, the insurer will probably take which this action. |
| Countersignature receipt | Is not a type of premium receipts, Binding receipt, Approval conditional receipt, and insurability conditional receipt are types of premiums. |
| Policy Cancellation with returned premium | An applicant who conceals material information from an insurer may be subject to this. |
| The Insurance application | This is where the under witter receives the greatest amount of information. |
| Inform the insurer of this new information immediately | If a producer completes and application but does not collect an initial premium. He later finds out that the proposed insured has been diagnosed with a serious illness after the application was completed. What should they do? |
| Binding Receipt | Provides coverage for an insured immediately upon the payment of the premium. Becomes effective as soon as the premium is collected by the agent, sometimes referred to as an unconditional receipt. |
| Preferred Risk | Risk classification that is characterized by a lower annual premium. |
| Underwrite the policy and if he is found insurable, the insurer will pay the claim | John applies for life insurance and pays an initial premium. He is provided with an insurability type of conditional receipt. The next day John dies in an auto accident and the insurer is informed the next day what action will they take? |
| The insurer has waived the right to require an answer to the question. | What will happen if an application for insurance includes some unanswered questions and the policy is still issued? |
| Part 2 of the application | Where does the health history of a proposed insured appear in the life insurance application? |
| They can continue to contact a consumer where there is an established relationship. | According to the federal law, sales personnel and telemarketers are allowed to do which of the following with regard to "Do Not Call" Legislation. |
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