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Applicant submits an application for insurance is known as what?
Offer
When the insurance company issues a policy is known as?
Acceptance
When an insurance company promises to pay a claim, it is known as what?
Consideration
What 2 things must the policy owner do to complete their steps of consideration?
statements on application/premium payment
What 3 factors determine the "competent parties"?
legal age/mentally competent/not under the influence of drugs or alcohol
What does legal purpose mean?
Not against public policy.
True/False: Warranties are absolutely true statements?
True
True/False: Representations are not guaranteed to be true.
True
Information that was misrepresented that would have changed the insurer’s underwriting decision is known as what?
A material misrepresentation
Unequal exchange is known as:
Aleatory
Take it or leave it is known as
Adhension
One-sided promise is known as
Unilateral
This medical plan has NO deductible/First Dollar Coverage.
Basic medical
This medical plan type has high limits and is comprehensive.
Major Medical
This major medical plan type is limited. Think of a closed box. An insured can only see providers within the box (in network). Lower premium, but less freedom.
HMO
This major medical plan type is a lot more open. Think of a box with no lid. Insureds can save money by seeing providers in the box (in network), but have the freedom to leave and see any provider (out-of-network).
PPO
