When must a producer provide disclosure about information practices to an applicant? A producer must give a disclosure notice about information practices to an applicant prior to or at the time of signing the application .
What must be disclosed when a producer advertises a life insurance policy?
Advertisements must be truthful and not misleading in fact or by implication . -An advertisement will not use as the name or title of a life insurance policy any phrase that does not include the words “life insurance” unless accompanied by other language clearly indicating it is life insurance.
What is the disclosure rule in insurance?
The ABA Model Court Rule on Insurance Disclosure requires lawyers to disclose on their annual registration statements whether they maintain professional liability insurance .
In what situation would an insurance policy's coverage be modified?
In what situation could an insurance policy's coverage be modified? Applicant is a substandard risk .
At what time must a policyowner have insurable interest?
For life insurance, the insurable interest only needs to exist at the time the policy is purchased . Since a policyowner must have an insurable interest in the insured at the time the policy is purchased, individuals cannot arbitrarily take out a life insurance policy on anyone they want.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment , rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment. For example, the claims representative keeps “forgetting” to send the claim forms.
Which of the following is the best reason to purchase life insurance rather than annuities?
Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be to provide for your loved ones if you do not have much saved up . ... With life insurance, you gain an instant legacy. After that first premium is paid, should you die, your heirs have an instant estate.
What is the purpose of disclosure statement?
A disclosure statement is a financial document given to a participant in a transaction explaining key information in plain language . Disclosure statements for retirement plans must clearly spell out who contributes to the plan, contribution limits, penalties, and tax status.
What are the consequences of non-disclosure?
If the insured/assured fails to disclose, then the insurer/assurer avoid the contract . So, only in cases of fraud, the party defrauded can not only avoid the contract, but also can claim damages/compensation for it.
What is the primary purpose of insurance disclosure?
The New York State insurance department defines an insurance disclosure as a statement meant “ to provide explanatory information regarding the significant features of the insurance policy to enable the insured to make an informed decision regarding purchasing the insurance policy .” So a disclosure is designed to help ...
Why is it called underwriting?
The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium . Although the mechanics have changed over time, underwriting continues today as a key function in the financial world.
What is the initial source of underwriting for an insurance policy?
Your application: The basic source of underwriting information is your completed application for term insurance . The questions on the application are designed to give the insurer much of the information needed to make a decision.
What is the face amount of a 50000 graded death benefit?
At what point are death proceeds paid in a joint life insurance policy? Which statement regarding universal life insurance is correct? What is the face amount of $50,000 graded death benefit life insurance policy when the policy is issued? Under $50,000 initially, but increases over time .
What is not considered an insurable interest?
People not subject to financial loss do not have an insurable interest . Therefore a person or entity cannot purchase an insurance policy to cover themselves if they are not actually subject to the risk of financial loss.
How do you prove insurable interest?
To confirm that an insurable interest is present, a life insurance company will usually talk to the policy owner, beneficiary and insured . They will investigate the relationship to the proposed insured and evaluate if there is an insurable interest.
What action should a producer take if the initial premium is NOT submitted with the application? The correct answer is “ Forward the application to the insurer without the initial premium “. In this situation, the producer should submit the application to the insurance company without the premium.
