When the insured purchased his health policy he was a window washer He has since?
Asked by: Newell King | Last update: January 8, 2026Score: 4.6/5 (37 votes)
When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old. When in fact she was 37?
Explanation: If an insured person has misstated her age on a disability income policy and the policy contains the optional misstatement of age provision, then the correct answer is that amounts payable under the policy will reflect the insured's correct age.
What is a policy with a 31 day period implies?
A 31-day grace period in an insurance policy means the policy will not lapse for 31 days even if the premium is not paid when due. This means the policyholder has an additional 31 days to pay without losing the coverage. It has nothing to do with incontestability, benefit payment time frames, or returning the policy.
What is it called when insurance companies often purchase insurance to cover their own exposure to loss?
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event.
When the insured initiates the cancellation policy?
The only time short-rate cancellation would occur would be when the insured initiates the cancellation prior to the expiration date. With short-rate cancellation, the insurer is entitled to retain a greater percentage of unearned premium than would otherwise apply with pro rata cancellation.
President Obama Answers: Penalty vs. Insurance
When the insured purchased his health policy, he was a window washer.?
Explanation: When the insured transitions from a high-risk occupation (like a window washer) to a lower risk one (like a library manager), the insurer should consider decreasing the premium (Option C). Insurance premium is the amount paid periodically by the insured to the insurance company to keep the policy active.
When can an insured cancel a policy?
Policyholders can cancel their auto insurance policy at any time, for any reason. And you never have to wait until the end of your policy period to cancel your policy. Even if your policy only started a few days ago, you may cancel it. Contact your insurer or agent to find the best way to cancel your policy.
What is considered an exposure in insurance?
Exposure is an individual's inclination to Risk in their daily life. For example, the more a person drives their car, the higher their Exposure to an accident. Insurance companies use Exposure to measure the risks of taking on certain policies and to help determine Premiums.
What is it called when an insurer buys insurance to reduce its exposure to loss?
Reinsurers may also buy reinsurance protection, which is called “retrocession.” This is done to reduce any further spread risk and the impact of catastrophic loss events. Overview: Reinsurance is an essential tool insurance companies use to manage risks and the amount of capital they must hold to support those risks.
What is the proximity clause in insurance?
Proximate Cause Insurance Definition
When determining the extent of the insurer's liability, the proximate cause is the first factor taken into account. Thus, if the direct cause of damage is a recognised risk that is covered by insurance, the insurer is required to compensate the insured for their loss.
What is a 28 day period?
The average menstrual cycle lasts 28 days. The cycle starts with the first day of one period and ends with the first day of the next period. The average woman ovulates on day 14.
What is the grace period of a policy?
The policyholder needs to pay the premiums on time so that he or she can claim the benefits of the policy without any hassle. Generally, insurance companies provide a grace period of 30 days. However, it may change from company to company.
What is the policy period time?
The policy period is the defined timeframe during which an insurance policy is valid and provides coverage to the policyholder. It represents the start and end dates of the insurance contract, dictating the duration of coverage and the obligations and benefits associated with the policy.
Under what is an insured considered to be totally disabled in a disability income contract?
Any Occupation
The insured is considered disabled if he or she is unable to perform the duties pertaining to any gainful occupation. It limits payments to those insured's who are unable to work in any occupation based on their education, training and experience, as determined by the insurance carrier.
What is a policy with a 31 day grace period implies?
The policy is incontestable after 31 days of delivery. A mandatory provision of life insurance policies requires that a grace period be provided. The grace period is the period of time after the premium due date in which premiums may still be paid before the policy lapses for nonpayment of the premium.
How many years after a disability policy has been enforced is it considered incontestable?
Incontestable:(a) After this policy has been in force for a period of two years during the lifetime of the insured (excluding any period during which the insured is disabled), it shall become incontestable as to the statements contained in the application.
When one insurer buys insurance from another company to minimize the effects?
Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss in case of disaster.
What is the known loss rule in insurance?
The known loss rule is the principle of insurance practice that states that coverage may not be obtained against a loss that has already occurred and that is known to the person seeking to obtain the coverage.
What is it called when an insurance company drops you?
There are two ways insurance companies can end a customer's policy: through non-renewal or cancellation. Non-renewal means the insurance company will see out the rest of your policy term but let you go as a customer after that.
What are examples of exposure?
If you place someone or something in an environment that causes them to experience something, you can call this exposure. Exposure to sun and rain will cause wood to turn gray. In school, you will be given exposure to the basic principles of math, science and language.
What are the 4 types of loss exposures?
Organizations must effectively manage four categories of loss exposures: property, liability, personnel, and net income loss exposures. Understanding the definitions of these loss exposures helps insurance personnel to properly identify and analyze them.
What is the exposure of home insurance?
A condition that presents the possibility that a person or an organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to property in which that person or organization has a financial interest.
Can an insurance company close a claim without my consent?
Yes, your insurer can close your claim without your consent.
What can cause an insurance policy to be terminated?
Generally, your policy can be canceled for these reasons: Non-payment of premium. Material misrepresentation / fraud. Breaches of contractual duties by the insured.
When can an employer cancel health insurance?
An employer may at any time amend the terms of an existing plan, including termination of the plan. Additionally, an employer may reduce or terminate health benefits of retired former employees who become eligible for Medicare Benefits without violating the Age Discrimination in Employment Act.