NJ Health and Accident QUESTIONS &
ANSWERS | A+ GRADED 100% VERIFIED
• The Applicant/ Proposed insured is . Answer: a person applying for the
insurance
• The insurable interest is . Answer: the policy owner facing the
possibility of losing something of value in the event of loss
• What does Consent mean? . Answer: permission to do something
• What is an Insurance Policy? . Answer: a contract between a policy
owner and insurance company which agrees to pay for loss caused by
specific event
• the "insured" is . Answer: The person covered by the insurance policy;
may or may not be the policy owner
• The "insurer" is . Answer: the principal or company who issues an
insurance policy
• What is the "Policyowner"? . Answer: the person entitled to excercise
the right and privileges in the policy
• What is "Premium" . Answer: The money paid to the insurance
company for the insurance policy
• What are the elements of a legal contract? . Answer: Agreement (offer
& accepted), Consideration, Competent Parties and Legal purpose
• Insurable Interest is proven by . Answer: love and affection, economic
or financial loss. In life and health insurance, it is required at the time of
policy issuance.
, • When a contract is "conditional" it... . Answer: requires that certain
conditions must be met by the policyowner and the company in order for
the contract to be excecuted
• A unilateral contract mean . Answer: only one of the parties to the
contract is legally bound to do anything. The insured makes no legally
binding promises. However, insurer is legally binding to pay losses
covered by a policy in force
• A contract of adhesion is . Answer: a contract prepared by the insurer
and accepted or rejected by the insured. it's on a take-it or leave-it bases
and any ambiguities in the contract will be settled in favor of the
insured.
• What is a Warranty . Answer: an absolutely true statement upon which
the validity of the insurance policy depends.
• What does Representation mean in a contract? . Answer: statements
believed to be true to the best of one's knowledge, but they are not
guaranteed to be true. Untrue statements on application are considerd
misrepresentations and could void the contract
• What is the Fair Credit Reporting Act? . Answer: established
procedures that consumer reporting agencies must follow in order to
ensure that records are confidential, accurate, relevant, and properly
used.
• An underwriter may request additional information about a applicant's
risk by using the following outside sources . Answer: Consumer Report
and Investigative Consumer Reports
• If the application raised questions concerning the prospective insured's
health, the underwriter may require a medical examination. What are the
two options? . Answer: Paramedical report: completed by paramedic or
registered nurse, and Attending Physician's Statement (APS): from a
ANSWERS | A+ GRADED 100% VERIFIED
• The Applicant/ Proposed insured is . Answer: a person applying for the
insurance
• The insurable interest is . Answer: the policy owner facing the
possibility of losing something of value in the event of loss
• What does Consent mean? . Answer: permission to do something
• What is an Insurance Policy? . Answer: a contract between a policy
owner and insurance company which agrees to pay for loss caused by
specific event
• the "insured" is . Answer: The person covered by the insurance policy;
may or may not be the policy owner
• The "insurer" is . Answer: the principal or company who issues an
insurance policy
• What is the "Policyowner"? . Answer: the person entitled to excercise
the right and privileges in the policy
• What is "Premium" . Answer: The money paid to the insurance
company for the insurance policy
• What are the elements of a legal contract? . Answer: Agreement (offer
& accepted), Consideration, Competent Parties and Legal purpose
• Insurable Interest is proven by . Answer: love and affection, economic
or financial loss. In life and health insurance, it is required at the time of
policy issuance.
, • When a contract is "conditional" it... . Answer: requires that certain
conditions must be met by the policyowner and the company in order for
the contract to be excecuted
• A unilateral contract mean . Answer: only one of the parties to the
contract is legally bound to do anything. The insured makes no legally
binding promises. However, insurer is legally binding to pay losses
covered by a policy in force
• A contract of adhesion is . Answer: a contract prepared by the insurer
and accepted or rejected by the insured. it's on a take-it or leave-it bases
and any ambiguities in the contract will be settled in favor of the
insured.
• What is a Warranty . Answer: an absolutely true statement upon which
the validity of the insurance policy depends.
• What does Representation mean in a contract? . Answer: statements
believed to be true to the best of one's knowledge, but they are not
guaranteed to be true. Untrue statements on application are considerd
misrepresentations and could void the contract
• What is the Fair Credit Reporting Act? . Answer: established
procedures that consumer reporting agencies must follow in order to
ensure that records are confidential, accurate, relevant, and properly
used.
• An underwriter may request additional information about a applicant's
risk by using the following outside sources . Answer: Consumer Report
and Investigative Consumer Reports
• If the application raised questions concerning the prospective insured's
health, the underwriter may require a medical examination. What are the
two options? . Answer: Paramedical report: completed by paramedic or
registered nurse, and Attending Physician's Statement (APS): from a
