IOWA HEALTH LICENSE EXAM
QUESTIONS AND ANSWER
Agent/Producers-
sans✔✔Aslegalsrepresentativesofsansinsurancescompany;sthesclassificationsofsasproducersu
suallysincludessagentssandsbrokers;sagentssaresthesagentssofsthesinsurer
Applicantsorsproposedsinsureds-sans✔✔Aspersonsapplyingsforsinsurance
Consents-sans✔✔Permissionstosdossomething
Insurablesinterests-
sans✔✔Thespolicyownersfacingsthespossibilitysof slosingssomethingsofsvaluesinstheseventsofs
asloss
Insurancespolicys-
sans✔✔Ascontractsbetweensaspolicyowners(and/orsinsured)sandsansinsurancescompanyswh
ichsagreesstospaysthesinsuredsorsthesbeneficiarysforslossscausedsbysspecificsevents
Insureds-
sans✔✔Personscoveredsbysthesinsurancespolicy; smaysorsmaysnotsbesthespolicyowner
Insurers(principal)s-sans✔✔thescompanyswhosissuessansinsurancespolicy
Policyowners-sans✔✔Thespersonsentitledstosexercisesthesrightssandsprivilegessinsthespolicy
Premiums-sans✔✔Thesmoneyspaidstosthesinsurancescompanysforsthesinsurancespolicy
Elementssofsascontracts-sans✔✔1)sAgreements-sOffers&sAcceptance
2)sConsideration
3)sCompetentsparties
4)sLegalspurpose
Applicant's/Insured'ss"consideration"sinstermssofsansinsurancescontracts-
sans✔✔Thespaymentsofsaspremiumsandsstatementssonsthesapplication
Insurer'ss"consideration"sinstermssofsansinsurancescontracts-
sans✔✔Thespromisestospaysin stheseventsofsansinsured'ssloss
DefinitionsofsInsurablesInterests-
sans✔✔Provensbyslove sandsaffection,seconomicsorsfinancialsloss.
,Warrantys-
sans✔✔Ansabsolutelystruesstatementsuponswhichsthesvaliditysofsthesinsurancespolicysdepen
ds.
Representationss-
sans✔✔Statementssbelievedstosbestruesto sthesbestsofsone'ssknowledge,sbutstheysaresnotsgu
aranteedstosbestrue.
Thesesanswerssaresconsideredsrepresentationssbecauseswhilestheysaresbelievedstosbestru
estheyscouldspotentialsbesinaccurate.s-
sans✔✔Aresthesanswerssgivensbysinsuredssonsansinsurancesapplicationsconsideredstosbesas
"warranty"sorsas"representation"?
Misrepresentationss-
sans✔✔Untruesstatementssonsansapplicationsthatscouldsvoidsthescontract.
MaterialsMisrepresentations-
sans✔✔Asfalsesstatementsthatschangessthesoutcomesofsissuingsaspolicy.
Ifsintentionallysmisstated,swouldsbesconsideredsfraud.
Whatsmakessansinsurancespolicysas"conditionalscontract"?s-
sans✔✔Thespolicysissonlysvalid sandsinseffectsbasedsonsthesconditionsthatsthesinsuredsissupsto
sdatesonsthespaymentsofstheirspremiums.
UnilateralsContracts-
sans✔✔Ansagreementsinswhichsonlysonesofsthespartiessisslegallysboundstosdosanything.sThes
insuredsmakessnoslegallysbindingspromise.sHowever,sthesinsurersisslegallysboundstospayslos
sesscoveredsbysaspolicysinsforce.
ContractsofsAdhesions-
sans✔✔Ascontractsthatsisspreparedsbysonesofsthespartiess(insurer)sandsacceptedsorsrejected
sbysthesotherspartys(insured).sInsotherswords,sinsurancescontractssaresofferedsonsastake-it-
or-leave-itsbasessbysansinsurer.
Aleatorys-
sans✔✔Ansexchangesofsunequalsamountssorsvalues.sThespremiumspaidsbysthesinsuredsisss
mallsinsrelationstosthesamountsthatswillsbespaidsbysthesinsurersinstheseventsofsloss.
MedicalsInformationsBureaus(MIB)s-
sans✔✔Ansinformationsdatabasesthatsstoresstheshealthshistoriessofsindividualsswhoshavesa
ppliedsforsinsurancesinsthespast.sMostsinsurancescompaniesssubscribestosthissdatabasesfors
underwritingspurposes.
False.sInsurersscanschargeshighersratessbasedsonsadversesinformationsbutscannotsdenysco
verage.s-sans✔✔TruesorsFalse?
, AnsinsurerscansrefusescoveragessolelysonsthesbasissofsadversesinformationsonsansMIBsrepor
t.
1)sParamedicalsreports(completedsbysasparamedicsorsRN)
2)sAttendingsPhysician'ssStatements(APS)s(Fromsasmedicalspractitionerswhostreatedsthesap
plicantsforsaspriorsmedicalsproblem).s-
sans✔✔Whatsaresthesonlystwostypessofsmedicalsexaminationsthatsinsurersscansrequiresofsan
sapplicant?
Trues-sans✔✔TruesorsFalse?
Ifsansinsurancescompanysrequiressansapplicantstostakesasmedicalsexamination,sthesexpens
esissputsonsthesinsurer.
True.sInsaddition,sadversesunderwritingsforsthespresencesofsHIV/AIDSssymptomssissprohibit
edsunlesssHIV/AIDSsissconfirmedsinsrelationstosthessymptoms.s-sans✔✔TruesorsFalse?
AnsinsurancescompanyscansrequiresansapplicantstostakesansHIVstest,sasslongsasstheysaresno
tsoverlysdiscriminatoryswithsthesadministeringsofsthestests.
FairsCreditsReportingsActs-sans✔✔1970slawsthatsestablishedsproceduressconsumer-
reportingsagenciessmustsfollowsinsorderstosensuresthatsrecordssaresconfidential,saccurate,sr
elevantsandsproperlysused.
Alsosprotectssconsumerssagainststhescirculationsofsinaccuratesorsobsoletespersonalsorsfina
ncialsinformation
ConsumersReportss-
sans✔✔Includeswrittensand/orsoralsinformationsregardingsa sconsumer'sscredit,scharacter,sr
eputation,sorshabitsscollectedsbysasreportingsagencysfromsemploymentsrecords,screditsrepo
rts,sandsotherspublicssources.
InvestigativesConsumersReportss-
sans✔✔Whilesthesesreportssalsosprovidesinformationsonsasconsumer'sscharacter,sthesinfosis
sobtainedsthroughsansinvestigationsandsinterviews swithsassociates,sfriends,sandsneighborss
ofsthesconsumer.
False.sThesesreportsscannotsbesmadesunlesssthesconsumersissadvisedsinswritingsaboutsthes
reportswithins3sdayssofsthesdatesthesreportswassrequested.sThesconsumerssmustsbesadvised
sthatstheyshavesasrightstosrequestsadditionalsinformationsconcerningsthesreport,sandsthesinsu
rersorsreportingsagencyshass5sdaysstosprovidesthesconsumerswithsthesadditionalsinformation
.s-sans✔✔TruesorsFalse?
Ifsansinsurersrequestssansinvestigativesconsumersreport,stheresissnoswaysforsthesconsumerst
osarguesagainstsorspreventsthesinvestigation.
TypessofsPerils-sans✔✔Sickness-sIllnesssthatsfirstsmanifestssitselfswhilesthespolicysissinsforce
QUESTIONS AND ANSWER
Agent/Producers-
sans✔✔Aslegalsrepresentativesofsansinsurancescompany;sthesclassificationsofsasproducersu
suallysincludessagentssandsbrokers;sagentssaresthesagentssofsthesinsurer
Applicantsorsproposedsinsureds-sans✔✔Aspersonsapplyingsforsinsurance
Consents-sans✔✔Permissionstosdossomething
Insurablesinterests-
sans✔✔Thespolicyownersfacingsthespossibilitysof slosingssomethingsofsvaluesinstheseventsofs
asloss
Insurancespolicys-
sans✔✔Ascontractsbetweensaspolicyowners(and/orsinsured)sandsansinsurancescompanyswh
ichsagreesstospaysthesinsuredsorsthesbeneficiarysforslossscausedsbysspecificsevents
Insureds-
sans✔✔Personscoveredsbysthesinsurancespolicy; smaysorsmaysnotsbesthespolicyowner
Insurers(principal)s-sans✔✔thescompanyswhosissuessansinsurancespolicy
Policyowners-sans✔✔Thespersonsentitledstosexercisesthesrightssandsprivilegessinsthespolicy
Premiums-sans✔✔Thesmoneyspaidstosthesinsurancescompanysforsthesinsurancespolicy
Elementssofsascontracts-sans✔✔1)sAgreements-sOffers&sAcceptance
2)sConsideration
3)sCompetentsparties
4)sLegalspurpose
Applicant's/Insured'ss"consideration"sinstermssofsansinsurancescontracts-
sans✔✔Thespaymentsofsaspremiumsandsstatementssonsthesapplication
Insurer'ss"consideration"sinstermssofsansinsurancescontracts-
sans✔✔Thespromisestospaysin stheseventsofsansinsured'ssloss
DefinitionsofsInsurablesInterests-
sans✔✔Provensbyslove sandsaffection,seconomicsorsfinancialsloss.
,Warrantys-
sans✔✔Ansabsolutelystruesstatementsuponswhichsthesvaliditysofsthesinsurancespolicysdepen
ds.
Representationss-
sans✔✔Statementssbelievedstosbestruesto sthesbestsofsone'ssknowledge,sbutstheysaresnotsgu
aranteedstosbestrue.
Thesesanswerssaresconsideredsrepresentationssbecauseswhilestheysaresbelievedstosbestru
estheyscouldspotentialsbesinaccurate.s-
sans✔✔Aresthesanswerssgivensbysinsuredssonsansinsurancesapplicationsconsideredstosbesas
"warranty"sorsas"representation"?
Misrepresentationss-
sans✔✔Untruesstatementssonsansapplicationsthatscouldsvoidsthescontract.
MaterialsMisrepresentations-
sans✔✔Asfalsesstatementsthatschangessthesoutcomesofsissuingsaspolicy.
Ifsintentionallysmisstated,swouldsbesconsideredsfraud.
Whatsmakessansinsurancespolicysas"conditionalscontract"?s-
sans✔✔Thespolicysissonlysvalid sandsinseffectsbasedsonsthesconditionsthatsthesinsuredsissupsto
sdatesonsthespaymentsofstheirspremiums.
UnilateralsContracts-
sans✔✔Ansagreementsinswhichsonlysonesofsthespartiessisslegallysboundstosdosanything.sThes
insuredsmakessnoslegallysbindingspromise.sHowever,sthesinsurersisslegallysboundstospayslos
sesscoveredsbysaspolicysinsforce.
ContractsofsAdhesions-
sans✔✔Ascontractsthatsisspreparedsbysonesofsthespartiess(insurer)sandsacceptedsorsrejected
sbysthesotherspartys(insured).sInsotherswords,sinsurancescontractssaresofferedsonsastake-it-
or-leave-itsbasessbysansinsurer.
Aleatorys-
sans✔✔Ansexchangesofsunequalsamountssorsvalues.sThespremiumspaidsbysthesinsuredsisss
mallsinsrelationstosthesamountsthatswillsbespaidsbysthesinsurersinstheseventsofsloss.
MedicalsInformationsBureaus(MIB)s-
sans✔✔Ansinformationsdatabasesthatsstoresstheshealthshistoriessofsindividualsswhoshavesa
ppliedsforsinsurancesinsthespast.sMostsinsurancescompaniesssubscribestosthissdatabasesfors
underwritingspurposes.
False.sInsurersscanschargeshighersratessbasedsonsadversesinformationsbutscannotsdenysco
verage.s-sans✔✔TruesorsFalse?
, AnsinsurerscansrefusescoveragessolelysonsthesbasissofsadversesinformationsonsansMIBsrepor
t.
1)sParamedicalsreports(completedsbysasparamedicsorsRN)
2)sAttendingsPhysician'ssStatements(APS)s(Fromsasmedicalspractitionerswhostreatedsthesap
plicantsforsaspriorsmedicalsproblem).s-
sans✔✔Whatsaresthesonlystwostypessofsmedicalsexaminationsthatsinsurersscansrequiresofsan
sapplicant?
Trues-sans✔✔TruesorsFalse?
Ifsansinsurancescompanysrequiressansapplicantstostakesasmedicalsexamination,sthesexpens
esissputsonsthesinsurer.
True.sInsaddition,sadversesunderwritingsforsthespresencesofsHIV/AIDSssymptomssissprohibit
edsunlesssHIV/AIDSsissconfirmedsinsrelationstosthessymptoms.s-sans✔✔TruesorsFalse?
AnsinsurancescompanyscansrequiresansapplicantstostakesansHIVstest,sasslongsasstheysaresno
tsoverlysdiscriminatoryswithsthesadministeringsofsthestests.
FairsCreditsReportingsActs-sans✔✔1970slawsthatsestablishedsproceduressconsumer-
reportingsagenciessmustsfollowsinsorderstosensuresthatsrecordssaresconfidential,saccurate,sr
elevantsandsproperlysused.
Alsosprotectssconsumerssagainststhescirculationsofsinaccuratesorsobsoletespersonalsorsfina
ncialsinformation
ConsumersReportss-
sans✔✔Includeswrittensand/orsoralsinformationsregardingsa sconsumer'sscredit,scharacter,sr
eputation,sorshabitsscollectedsbysasreportingsagencysfromsemploymentsrecords,screditsrepo
rts,sandsotherspublicssources.
InvestigativesConsumersReportss-
sans✔✔Whilesthesesreportssalsosprovidesinformationsonsasconsumer'sscharacter,sthesinfosis
sobtainedsthroughsansinvestigationsandsinterviews swithsassociates,sfriends,sandsneighborss
ofsthesconsumer.
False.sThesesreportsscannotsbesmadesunlesssthesconsumersissadvisedsinswritingsaboutsthes
reportswithins3sdayssofsthesdatesthesreportswassrequested.sThesconsumerssmustsbesadvised
sthatstheyshavesasrightstosrequestsadditionalsinformationsconcerningsthesreport,sandsthesinsu
rersorsreportingsagencyshass5sdaysstosprovidesthesconsumerswithsthesadditionalsinformation
.s-sans✔✔TruesorsFalse?
Ifsansinsurersrequestssansinvestigativesconsumersreport,stheresissnoswaysforsthesconsumerst
osarguesagainstsorspreventsthesinvestigation.
TypessofsPerils-sans✔✔Sickness-sIllnesssthatsfirstsmanifestssitselfswhilesthespolicysissinsforce
