What is Part 1 of a life insurance application?
The application is defined as a "form supplied by the insurance company, usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. It is signed by the applicant and is part of the insurance policy if it is issued. It gives information to the home office underwriting department, so it may consider whether an insurance policy will be issued, and if so, in what classification and at what premium rate." Show
The application is the basic source of insurability information. Regardless of what other sources of information an underwriter will draw from, this is the first source to be reviewed and will be evaluated thoroughly. What is the purpose of the insurance application form? The application provides the insurance company with necessary information regarding the insured's age, address, health history and other factors. This information is important so that the insurance company can properly determine if the applicant meets their underwriting rules and can determine the proper premium. What type of information is requested on the application? There is a series of questions on the application that provide information for underwriting the policy. These questions include name, address, age, height, weight, sex, occupation, earnings, beneficiary, insurance history and medical history. There are basically three sections in a typical life insurance application:
An agent used to be able to accept an application by mail or by phone as long as the applicant signed the application; however, that is no longer the case. An agent must assist the purchaser in person during the process of completing the application. The reason for this is that the agent will be able to make certain observations that aren't available to the underwriter. Sometimes visual observations can tell things that are not included in the Agent's Report. Once the application has been completed, the agent cannot make any changes to it without requiring the applicant to initial the changes. For instance, Brittany realized she put the wrong home phone number on the application and she wants her agent to correct it. Even though this change isn't anything that will affect the underwriting process, the agent still cannot legally make the change. He can write it down, but he still needs to get Brittany's initials witnessing that she actually approved the change.As a matter of fact, several signatures must be obtained in order to complete the application. It must, of course, contain the signature of the applicant (policyowner) and if the policyowner is not the same as the proposed insured, the application must contain the proposed insured's signature as well. If the policy is taken out on the life of a child (under age 15), the application must be signed by a parent or legal guardian. If the application is for a business entity, the application must contain signatures of one or more partners or officers of the company. It is an unfair trade practice to willfully submit to an insurer an application for insurance or policy-related document that contains a false or fraudulent signature. Doing so is a third-degree felony and subject to $5,000 for each non-willful violation and $75,000 for each willful violation. The soliciting agent's signature MUST appear on the application. Any additional questionnaires or forms must be signed as well such as medical release forms, automatic payment plan documents, etc. In Florida, the name of the insurance company and the agent's name and license identification number must also appear on the application. Remember: The application must contain the name of the insurance company, the name of the soliciting agent, and the agent's I.D. number. How does the law define misrepresentation in insurance applications? 1. Knowingly making false or fraudulent statements or representations on, or relative to, an application for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurance company, agent, broker or individual. 2. Knowingly making a material omission in the comparison of a life, health, or Medicare supplement insurance replacement policy with the policy it replaces for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. A material omission includes the failure to advise the insured of the existence and operation of a preexisting condition clause in the replacement policy. Life insurance can help ensure that your dependents have the resources they need to replace your income should you die. But how do you go about purchasing coverage? And what can you do to get the best possible rate? Understanding the process of obtaining life insurance can help you get the coverage you need at a price you can afford. Read on to learn about what's involved in buying life insurance from the application process to the underwriting process. This will typically involve filling out some paperwork, submitting to a paramedical exam, and providing your and your immediate family's health histories. The lower the risk you present to the insurer (often associated with youth and healthiness), the lower you can expect your premiums to be. Key Takeaways
Determining Your Life Insurance Coverage NeedsThere are two main categories of life insurance: permanent life insurance, which provides coverage for your entire life, and term life insurance, which provides coverage for a set period of time. A local insurance broker can help you understand more about your options. Once you have decided to purchase life insurance, you'll need to determine your coverage amount by considering how much your beneficiaries will need after you die, and how much you already have covered through personal assets or group term insurance (such as a policy offered by your employer). The amount of life insurance coverage you will need depends on several factors, including the age of your dependents, your spouse's earning ability, any debt you may have, and your combined financial resources. Medical Questions on the Life Insurance ApplicationYou will need to apply for life insurance. The application will ask for basic information such as your name, address, and employer. It will also ask for the following personal information:
While it may be tempting to lie about your weight or other health issues, it's important to tell the truth. If the company discovers you lied about a health condition or lifestyle, it can increase your premium, cancel your policy, or deny a beneficiary's claim to the death benefit. Some insurance companies will accept your answers to health-related questions, such as which medications you take or any surgeries you've had, on the application. These no-exam life insurance—such as guaranteed issue life insurance and simplified issue life insurance—are usually more expensive and have a lower face value than insurance that requires a medical exam. The Life Insurance Medical ExamMost companies and policies require an in-person medical exam. A life insurance agent will arrange for a paramedical (a licensed healthcare professional contracted by the insurance company) to meet you at your home, office, or a clinic selected by the insurance company. During the exam, the paramedical will likely:
There may be additional tests you need to undergo depending on your age, the type of policy you want, and the amount of coverage you're applying for. Additional tests could include an EKG, a chest X-ray, or a treadmill test. Next, an underwriter at the insurance company will review your application and medical exam results. They may order medical records from your physician to learn more about any medical conditions you may have and any treatment received. This information helps them determine what risk you represent to the company financially and how much to charge you for coverage. Once your application and medical exam have been reviewed, the company will either approve or deny your request to purchase coverage. That process can take days or weeks, depending on whether you submitted a complete application, how long it takes to receive lab results, if the company requests information from your physician, and so on. If you lie about a medical condition, the insurance company may not only deny you coverage but may also "red-flag" you, meaning other insurers will know you were denied coverage because you lied. If Your Coverage Is DeniedIf you "fail" the medical exam and the insurance company declines to cover you—or if it offers to cover you at a higher rate due to the results of your exam—you have a few options. You can pursue group term life insurance through your employer, which often doesn't require a medical exam, ask your insurance broker if there is a company that will work with your medical status, or try for a no-exam policy. If you are offered a policy but aren't happy with the rate, you can purchase it for now and then ask to be re-evaluated at a future date (and aim to improve your health during that time). And, of course, you can enquire with more than one insurance company to try and find the best possible life insurance policy for your circumstances. Ways to Reduce Your Life Insurance PremiumWhile you can't do anything about two of the three main factors affecting your insurance premium (age and family medical history), there are steps you can take regarding the third: lifestyle. You could lower your insurance premium if you:
Other non-lifestyle-related ways to reduce your premium include:
When Does My Doctor Fill out a Life Insurance Questionnaire for Me?Many life insurance companies will contact your doctor's office and obtain medical records after you have given permission to do so. The doctor's office will also complete a medical questionnaire. The doctor may also be required to sign an attending physician's statement asserting the veracity of this information. Why Is an Applicant’s Signature Required on a Life Insurance Application?It is considered insurance fraud if you lie or knowingly misrepresent information on a life insurance application. By signing the policy, you affirm that everything included in the application was accurate and truthful. What Is the Minimum Age at Which a Person Can Sign a Life Insurance Application?This will vary by location, but the minimum age at which someone can sign a life insurance application in most states is 18. In Washington State, those aged 15 and older must sign any life insurance application someone takes out on them. What Are the Requirements for Taking a Life Insurance Policy on Someone Else?In order to take out a life insurance policy on someone else, you need to be able to show that there is an insurable interest in that person. This requires proof that an individual or entity would experience financial or other hardships as the result of the death of a person. What are the parts of a life insurance application?There are basically three sections in a typical life insurance application:. Part I - General.. Part II - Medical.. Part III - Agent's Report.. What is Part 2 of life insurance application?Part II contains medical information, provided by an examining physician and/or laboratories if the applicant is required to have a physical examination, and self-reported (as in use of alcohol, tobacco, etc.)
What is contained in Part III of an application for insurance?Part III of the application provides additional information about the applicant's financial condition, character, purpose of the sale, how long the agent has known the applicant.
What are the three basic parts of a life insurance contract?There are four basic parts to an insurance contract:. Declaration Page.. Insuring Agreement.. Exclusions.. Conditions.. |