Which requires insurers to disclose when an applicants consumer or credit history is being investigated?
The Fair Credit Reporting Act is a Federal law requiring an individual to be informed if that individual is being investigated by an inspection company. The McCarran-Ferguson Act was enacted in 1945 and made it clear that continued regulation of insurance by the states was in the public's best interest.
What is the name of the law that requires insurers to disclose information gathering practices?
The Privacy Protection Act requires insurers and insurance agents to provide applicants for insurance with information concerning what information is required, what information can be distributed, and how this might affect the applicant's personal information.
What is the consideration given by an insurer in the consideration clause of a life policy?
The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.
When must insurable interest be present in order?
When buying life insurance, insurable interest must exist at the time the life insurance policy is purchased. If the policyholder and insured person are different, both the policyholder and named beneficiary must have an insurable interest and prove financial loss and hardship if the insured were to pass away.
How many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
The user must disclose to the consumer that an investigative consumer report may be obtained. This must be done in a written disclosure that is mailed, or otherwise delivered, to the consumer not later than three days after the date on which the report was first requested.
Where would the underwriter find relevant information not presented by the applicant but communicated by the producer?
Where with the underwriter find relevant information not presented by the applicant but communicated by the producer? Application.
What is the applicants consideration in an insurance contract?
Consideration can be defined as the value given in exchange for the promises sought. In an insurance contract, consideration is given by the applicant in exchange for the insurer's promise to pay benefits. It also consists of the application and the initial premium.
What is the consideration given by an insurer in the consideration clause quizlet?
The Consideration clause of an insurance contract includes? The schedule and amount of premium payments. (The Consideration clause of a Life or Health policy includes the schedule and amount of premium payments.)
What qualifies as an acceptance of an insurance contract offer?
After filling in the requested details, you send the form to the company (sometimes with a premium check). This is your offer. If the insurance company agrees to insure you, this is called acceptance. In some cases, your insurer may agree to accept your offer after making some changes to your proposed terms.
At what time must a policy owner have insurable interest on the insured in order for the life policy to be valid?
At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? With life insurance, insurable interest must exist only at the policy inception.
At what time during the application and approval process for life insurance must insurable interest exist?
In a life insurance policy, when must insurable interest exist? In life insurance, insurable interest must exist between the policyowner and the insured at the time of the application.
Who will have to meet an insurable interest requirement in order for a policy to issue?
In the case of a life insurance policy, the owner of the policy must always have an insurable interest in the life of the insured. Also, if the owner of the policy is not the beneficiary then the beneficiary named in the contract would also need an insurable interest in the insured person.
Who elects the governing body of a mutual?
The quick answer to the question: who elects the governing body of a mutual insurance company is the policyholders. That is because they are the ones owning the mutual insurance company. They may receive surplus through dividends or they may opt to retain it in exchange for future premium reductions.
What type of reinsurance contract involves?
A common reinsurance contract between two insurance companies is called treaty reinsurance, which involves an automatic sharing of the risks assumed. Which involves an automatic sharing of the risks assumed.
Which of these describe a participating insurance?
A participating insurance policy is one in which the policyowner receives dividends deriving from the company’s divisible surplus.
What is the name of the law that requires insurers to disclose information gathering practices?
If you use consumer reports to underwrite insurance policies or screen high-risk applicants, you must comply with the Fair Credit Reporting Act (FCRA).
When must insurable interest exist for a life insurance contract to be valid?
For property and casualty insurance, the insurable interest must exist both at the time the insurance is purchased and at the time a loss occurs. For life insurance, the insurable interest only needs to exist at the time the policy is purchased.
At what point does an informal contract become binding?
An informal contract becomes binding when one party makes an offer and the other party accepts that offer. Life and health insurance policies are considered unilateral contracts because one party makes a promise, and the other party can only accept by performance.
At what point must a life insurance applicant be informed of their rights that full under the Fair Credit Reporting Act?
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? An applicant for life insurance must be informed of their rights upon completion of the application.
What is a settlement option in life insurance?
a life insurance beneficiary has chosen a settlement option in which the principal never decreases unless the beneficiary makes a withdrawal. This settlement option is called the: A. interest only option.
What is premium insurance?
an insurance premium can be defined as: A. money paid to an insurance company for benefits provided in the policy. B. a legal contract between an insured and insurer. C. money paid to an insured for benefits payable.
