Insurance and Underwriting Flashcard

Front

In the context of insurance, what is the promise called when the insured promises to meet certain conditions, like installing a security system?

Back

A promise made by the insured that certain conditions will be met

Answer explanation

This promise is known as a "promise made by the insured that certain conditions will be met." Mason's commitment to install and maintain a security system is a condition of the insurance policy.

Front

What is an example of concealment when applying for health insurance?

Back

Failing to disclose a previous heart condition

Answer explanation

Concealment in insurance refers to not disclosing important information. Failing to disclose a previous heart condition is a clear example, as it can significantly affect the risk assessment and coverage options.

Front

What is the primary purpose of underwriting in health insurance?

Back

To assess and price the risk of insuring a person or entity

Answer explanation

The primary purpose of underwriting is to assess and price the risk of insuring a person or entity. This process helps insurance companies determine the appropriate premiums based on the individual's health and risk factors.

Front

Which act requires financial institutions to explain their information-sharing practices?

Back

Gramm-Leach-Bliley Act

Answer explanation

The Gramm-Leach-Bliley Act requires financial institutions to disclose their information-sharing practices to customers, ensuring transparency about how personal information is handled.

Front

Which law regulates the collection, dissemination, and use of consumer information?

Back

The collection, dissemination, and use of consumer information

Answer explanation

The correct choice is 'The collection, dissemination, and use of consumer information' as it directly relates to the regulation of credit history checks, ensuring consumer information is handled properly.

Front

What is the document called that is used by an applicant to request insurance coverage?

Back

A form used by an applicant to request insurance coverage

Answer explanation

The document Hannah fills out to request health insurance coverage is called a form. This form is specifically used by applicants to apply for insurance, making it the correct choice.

Front

What is the purpose of the Terrorism Risk Insurance Act (TRIA)?

Back

To provide a government backstop for insurance claims related to acts of terrorism

Answer explanation

The Terrorism Risk Insurance Act (TRIA) provides a government backstop for insurance claims related to acts of terrorism, helping insurers cover losses and stabilize the market after such events.

Front

What does the territory provision in an insurance policy define?

Back

The geographic area where coverage applies

Answer explanation

The territory provision in an insurance policy defines the geographic area where coverage applies, ensuring Aria knows where her insurance is valid while traveling.

Front

What type of insurance should Isla consider to protect her bakery from various liabilities, such as customer injuries or property damage?

Back

Commercial General Liability (CGL) insurance

Answer explanation

Isla should consider Commercial General Liability (CGL) insurance, as it protects businesses from various liabilities, including customer injuries and property damage, ensuring her bakery is safeguarded.

Front

What is covered under Premises and Operations Liability when a customer slips and falls inside a store?

Back

Bodily injury or property damage on the insured's premises

Answer explanation

Bodily injury or property damage on the insured's premises is covered under Premises and Operations Liability, making it the correct choice. The other options do not relate to injuries occurring on the premises.