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.
Similarly, at what time must insurable interest exist?
As a rule of thumb, for property insurance, the insurable interest must exist both at the time of purchase of insurance and at the time of occurrence of loss. For life insurance, the insurable interest must exist at the time of purchasing life insurance.
Considering this, what factors do insurance companies use to determine the potential risk of an applicant?
The riskier you are to insure, the higher your life insurance premiums will be. Your age, gender, medical history, occupation, and even your hobbies can carry a certain level of risk. When you apply for life insurance, these factors are evaluated and your risk class is determined.
What happens when someone does not have health insurance?
Without health insurance coverage, a serious accident or a health issue that results in emergency care and/or an expensive treatment plan can result in poor credit or even bankruptcy.
What happens when someone doesn’t have health insurance?
California Individual Mandate
In 2021, the annual penalty for Californians who go without health insurance is 2.5% of household income or at least $750 per adult and $375 per dependent under 18, whichever is greater. The dollar figures will rise yearly with inflation.
What is an insurable interest when must an insurable interest exist?
Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without repairment or damage, of the insured object (or in the case of a person, their continued survival).
What is the initial requirement for an insured to become eligible for benefits under waiver of premium provision?
In most cases, you must be less than 60 years of age when the disability begins in order to qualify for Waiver of Premium. The provision amount in force on the date of disability is then maintained until the age listed in the policy (typically age 65) without the payment of premium.
What is the initial requirement for an insured to become eligible for benefits?
What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision? Insured must be under a physician’s care. You just studied 62 terms!
Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? To determine the premium rate on a Whole Life policy, an insurance company will consider the risk classification of the applicant.
Which of the following actions is required by an insured who leaves the primary area of medical?
If an insured leaves the primary area of medical coverage and seeks medical care, the insured first needs to: contact the insurer to obtain prior approval for the medical service.
Which of the following actions will an insurance company most likely not take?
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? The correct answer is “Issue the policy with an altered Time of Payment of Claims provision”.
Which of the following entities can legally bind coverage?
Your insurance coverage can be bound one of two ways: coverage can be bound through the insurance company issuing the policy or by the verbal or written commitment (called a “binder”) of an authorized representative of the company, such as an agent.
Which of the following is not a required provision in group life policies?
Which provision is NOT a requirement in a group life policy? An AD&D provision is not required in a group life policy. The correct answer is “the entire cost of the plan is paid for by the employer”. When an employer provides noncontributory group term life insurance, the employer pays the entire cost of the plan.
Which of these is not required when an insurance company request an inspection report on an applicant?
Which of these is NOT required when an insurance company requests a consumer report on an applicant? The consent of the agent is not needed when requesting a consumer report on an applicant.