What does rescind mean in insurance?
What does rescind mean in insurance?
Rescission — with respect to a directors and officers (D&O) liability insurance policy, a declaration by an insurer that the policy was never in effect, the result being that coverage for a claim, when tendered by a corporate organization to an insurer, is not covered.
What prevents a life insurance policy from being rescinded by the insurer?
What prevents a life insurance policy from being rescinded by the insurer after being in force for two years? Insurers are prohibited from denying claims or rescinding a policy based on misstatements in a life, accident, or disability policy application after the policy has been in force for two years.
When handling premiums for an insured an agent is acting in which capacity?
Terms in this set (15) When handling premiums for an insured, an agent his acting in which capacity? The insured and the insurer contribute equally to the contract.
What is the price of insurance for each exposure unit?
A rate is the price per unit of insurance for each exposure unit, which is a unit of liability or property with similar characteristics. For instance, in property and casualty insurance, the exposure unit is typically equal to $100 of property value, and liability is measured in $1,000 units.
Which type of risk is gambling?
Gambling is an example of a speculative risk.
What are an applicant’s statements concerning occupation?
What are an applicant’s statements concerning occupation, hobbies, and personal health history regarded as? Statements by an applicant concerning personal health history, family health history, occupation, and hobbies are referred to as representations.
What makes an insurance contract legally binding?
To be legally enforceable, a contract must be made with a definite, unqualified proposal (offer) by one party and the acceptance of its exact terms by the other. In many cases, the offer of an insurance contract is made by the applicant when the application is submitted with the initial premium.
What does the cobra of 1985 allow an employee to do?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) Passed in 1985, COBRA is a federal law that allows employees of certain companies to continue their health insurance with the same benefits even after they stop working for their employer.
How does life insurance create an immediate estate?
What does the statement “Life insurance creates an immediate estate” mean? “The total death benefit is paid whenever the insured dies”. Life insurance creates an immediate estate by paying a death benefit whenever the insured dies.
When can a beneficiary change occur?
Such last-minute beneficiary changes happen when the insured is gravely ill, in the hospital or nursing home, or of diminished mental capacity. Most of the time they occur a day or two before the insured’s death.
How does life insurance create an immediate estate quizlet?
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? (An immediate estate can be created because the face amount may be available to the beneficiary after the first premium is paid.)
