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This course explains the importance of an application for insurance as a request to multiple insurers for offers to provide insurance needed by the applicant. Insurance is a contract, and the insurance contract is a special type of contract. 

The applicant must understand that the application contains multiple representations on which the insurer will rely in making its decision whether or not to insure the applicant. The applicant must understand that when a person lies on an application for insurance, it can be rescinded and dealt with as if it never existed. This course also teaches the basis for the equitable remedy of rescission as it applies to policies of insurance and how to avoid the application of the remedy.

The course covers the following:

  1. What an application is and how it is used by an underwriter.
  2. The difference between a misrepresentation, concealment, or breach of warranty.
  3. The obligation of the applicant to deal fairly and in good faith with the insurer.
  4. What is material to an insurance underwriter.
  5. That fraud is not required to prove the need for rescission.
  6. The general rules with regard to relief for false statements on an application for insurance.

Learning Objectives

  • Recognize the importance of honest responses to questions on an application for insurance.
  • Explore how to respond to questions posed on the application.
  • Explore what an insurer needs to prove it is entitled to rescission.
  • Identify the elements of the equitable remedy of rescission.
  • Recognize the difference between a misrepresentation and a concealment of material fact.
  • Explore how to establish that a representation is material.
  • Explore how to establish a concealment of fact is material.
  • Identify that a statement is a warranty.
  • Identify the effect of a false warranty.
  • Recognize the need to make accurate representations to an insurer.
  • Explore “Post Loss Underwriting” and why it is an Oxymoron.

Included In Certifications

This course is included in the following Expert Certifications:

16 CoursesCertified Expert in Corporate Property Insurance

  1. Introduction: Excellence in Claims Handling
  2. How to Acquire a First-Party Property Insurance Policy
  3. How to Read and Understand an Insurance Policy
  4. The Necessity of an Honest and Complete Insurance Application
  5. The Law of Contracts for the Insurance Professional
  6. Ethics for the Insurance Professional
  7. What is the Problem with Fraud?
  8. Interviewing Techniques for the Insurance Professional
  9. Investigation of a First-Party Property Insurance Claim
  10. The Creation of a Scope, Statement, and Proof of Loss
  11. The Duties of an Insured Presenting a First-Party Property Claim
  12. The Insurance Examination under Oath (EUO)
  13. Insurance Fraud Prevention
  14. Compliance with Special Investigation Unit Regulations
  15. Compliance with Good Faith Settlement Practices Regulations
  16. The Obligations of a Public Insurance Adjuster

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 ext. 106, or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  11:13Introduction to The Necessity for an Honest and Complete Application for Insurance
  12:26California's Insurance Code 358 and Fraud
  10:29Fraud and Materiality
  7:40General Rule and Rescission
  9:59Imperial Casualty and Indemnity Co. v. Sogomonian
  11:23More Cases
  8:30"Post Loss Underwriting" is an Oxymoron
CONTINUOUS PLAY
  1:11:58The Necessity for an Honest and Complete Application for Insurance
SUPPORTING MATERIALS
  PDFSlides: The Necessity for an Honest and Complete Application for Insurance
  PDFThe Necessity for an Honest and Complete Application for Insurance Glossary
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM