What is the name of the law that requires insurer to disclose information gathering practices and where the information was obtained?
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 requires insurers to disclose when an applicant's consumer or credit history is being investigated?
The federal Fair Credit Reporting Act gives insurers access to your credit information without your permission. However, insurers are required to inform you if the use of such credit information results in an "adverse action."
What is the consideration given by an insurer in the consideration clause?
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.
What is the purpose of agent's report in the application process?
What is the purpose of the agent's report? Provides the agent's personal observations concerning the proposed insured . Who is required to sign an application for life insurance? Both the agent and the proposed insured usually the applicant must sign the application.
What are the 3 most important things to be aware of when applying for a credit card?
Checklist of what to look out for when choosing a credit cardAnnual Percentage Rate (APR). This is the cost of borrowing on the card, if you don't pay the whole balance off each month. ... minimum repayment. ... annual fee. ... charges. ... introductory interest rates. ... loyalty points or rewards. ... cash back.
How many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
three daysThe 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.
What are the four rules of consideration?
Consideration must move from the promisee but need not flow to the promisor. Consideration must be sufficient but need not be adequate. Consideration cannot be illusory. Consideration must not be past.
What is legal consideration in life insurance contract?
In the case of insurance, legal consideration refers to the premiums paid, the funds paid to a third party and the protection against being sued. The exchange of these premiums is basically a promise of indemnity, whereas the third party then gives up a right to sue the insured.
What are the five rules of consideration?
Rules of considerationThe consideration must not be past.The consideration must be sufficient but need not be adequate.The consideration must move from the promisee.An existing public duty will not amount to valid consideration.An existing contractual duty will not amount to valid consideration.More items...
What are the rights and responsibilities of an agent?
As per section 219, an agent has a right to receive the agreed remuneration or in absence of agreement, a reasonable remuneration for rendering the services to the principal that are not voluntary or gratuitous. He becomes eligible to receive the remuneration as soon as he completes the work that he undertook.
What are the agents responsibilities?
In practice, the duty to act in the best interests of the principal requires the agent to use his due diligence and skill to negotiate terms of a transaction on behalf of his principal with a third party to the greatest advantage of his principal in the circumstances.
What are the duties and responsibilities of an agent?
Duties of AgentDuty not to delegate his authority.Duty to protect and preserve the interest.Duty to execute the mandate.Duty to act with care and skill.Duty to render proper account.Duty to communicate with the principal.Duty not to deal on his account.Duty not to make a secret profit.More items...•
What does the insured have to disclose information?
Under the duty of disclosure, a consumer applying for insurance (the insured) must disclose relevant information to the insurer. The duty of disclosure is extremely important to the insurance company's decision to agree to the contract of insurance.
What is a consumer reporting agency required to disclose?
Disclosures to consumers. (a) Every consumer reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer: (1) The nature and substance of all information (except medical information) in its files on the consumer at the time of the request.
What duty does the insured have to disclose information?
The duty of good faith includes the requirement that both the insured and the insurer disclose all material facts relating to the insurance contract to be entered into. The insured knowing more about the specific risk than would the insurer, has a duty to disclose all material information about the risk to be insured.
What is the insured expected to disclose?
The insured has the duty to disclose all material facts and circumstances of which he has knowledge prior to concluding the contract.
When must insurable interest exist for a life insurance contract to be valid?
For life insurance, the insurable interest only needs to exist at the time the policy is purchased.
What describes a participating life insurance policy?
A participating policy enables you as a policy holder to share the profits of the insurance company. It is also known as a with-profit policy. In non-participating policies the profits are not shared and no dividends are paid to the policyholders.
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).
Who is the participant in insurance?
Participant — an insured that utilizes a captive insurance company through a participant contract specifying the terms of participation, rather than through a shareholder or member contract.
Who signs an insurance application?
It is signed by the applicant and is part of the insurance policy if it is issued.
What is the consideration given by an insurer in the consideration clause of a life policy?
Investor-Originated Life Insurance. What is the consideration given by an insurer in the Consideration clause of a life policy? Promise to pay a death benefit.
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.
How long does life insurance last?
Even though the premium payments are limited to a certain period, the insurance protection extends until the insured's death, or to age 100.
Who is the primary beneficiary of E and F?
E and F are business partners. Each takes out a $500,000 life policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists.
What is unilateral insurance contract?
Insurance contracts are unilateral. This means the only one party (the insurance) makes any kind of enforceable promise.
What is family plan insurance?
Family plan policies usually cover the family head with permanent insurance and the coverage on the spouse and children is term insurance in the form of a rider.
Is variable life insurance a securities contract?
Because of the transfer of investment risk from the insurer to the policyowner, variable insurance products are considered securities contracts as well as insurance contracts.
