Accident & Sickness: Field Underwriting Procedures Flashcard

Front

What is required when correcting an error on an insurance application?

Back

Applicant's initials

Answer explanation

When correcting an error on an insurance application, the applicant's initials are required to acknowledge the change. This ensures that the applicant is aware of and agrees to the correction made.

Front

What does the MIB report provide in the context of insurance?

Back

Medical information

Answer explanation

The MIB report provides medical information relevant to insurance underwriting, helping insurers assess risk based on an applicant's health history.

Front

What triggers conditional coverage in insurance?

Back

Initial premium payment

Answer explanation

Conditional coverage in insurance is triggered by the initial premium payment. This payment confirms the policyholder's intent to activate the coverage, making it effective.

Front

What must an agent do after collecting an insurance application and premium?

Back

Submit them promptly for underwriting

Answer explanation

After collecting an insurance application and premium, the agent must submit them promptly for underwriting to ensure timely processing and evaluation of the application.

Front

What is the purpose of obtaining a delivery receipt when delivering a policy?

Back

To verify the policy was received

Answer explanation

The purpose of obtaining a delivery receipt is to verify the policy was received. This confirmation ensures that the intended recipient has acknowledged receipt of the policy document.

Front

What should an agent explain during policy delivery?

Back

Coverage, riders, exclusions, and ratings

Answer explanation

During policy delivery, the agent should explain coverage, riders, exclusions, and ratings to ensure the client understands the policy details. This information is crucial for informed decision-making.

Front

What is a key consideration when replacing an insurance policy?

Back

Avoiding loss of benefits or higher costs

Answer explanation

When replacing an insurance policy, it's crucial to avoid loss of benefits or incurring higher costs. Ensuring that the new policy maintains or improves coverage is essential for the client's financial protection.

Front

What is an example of consideration in an insurance contract?

Back

Monthly premium payment

Answer explanation

In an insurance contract, consideration refers to something of value exchanged. The monthly premium payment is the policyholder's consideration, as it is the payment made in exchange for the insurer's coverage.

Front

What constitutes an offer in an insurance contract?

Back

Application and premium

Answer explanation

An offer in an insurance contract is constituted by the application and premium payment. This indicates the applicant's intent to enter into the contract, making it a binding offer upon acceptance by the insurer.

Front

Who cannot be a policyowner due to lack of competent parties?

Back

A minor

Answer explanation

A minor cannot be a policyowner due to lack of legal capacity to enter into contracts. Unlike adults, minors are not considered competent parties in legal agreements.