🟥A) General Insurance ⛑️

4 elements of an insurance contract?

1) Agreement (offer + acceptance) 2) Consideration 💰 3) Competent Parties 🎉 4) Legal Purpose⭐️

Documentation that grants Express Authority to an agent?

AGENT'S CONTRACT📝 W THE PRINCIPAL

when risks with higher probability of loss are seeking insurance more often than other risks, this is known as what?

Adverse Selection

If an applicant does not receive their insurance policy, who is responsible?

Agent 👩‍💼

According to the Law of Agency, a Principal is represented by whom?

Agent 👩‍💼 or Producer

A producer, who fails to separate premium monies from his own personal funds, is guilty of...

COMMINGLING

5 characteristics of an ideally insurable risk?

Loss must be... 1) due to chance 2) definite and measurable 3) statistically predictable 4) not ❌ catastrophic 5) coverage cannot ❌ be mandatory

Which of the following is NOT ❌ the Consideration in a policy?

The application given to a prospective insured 👵 Consideration is something of value that is transferred between the two parties to form a legal contract.

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

Best way to handle INCOMPLETE insurance applications

return the application to the applicant for completion

when is the offer usually made on a contract?

when the insurance application is submitted

In forming an insurance contract when does acceptance usually occur?

when the insurer approves a prepaid application

Two elements necessary for a life insurance contract to have a legal purpose?

Insurable INTEREST + Consent

Which statement regarding insurable risks is not ❌ correct?

Insured 👵 cannot be randomly selected.

In agent/insurer relationship, who is Principal?

Insurer💒

When would a Misrepresentation on a insurance application be considered Fraud?

Intentional + MATERIAL

Which of the following is NOT ❌ a goal of Risk Retention? Reduce expenses and improve, cash flow Minimize the insured's level of liability in the event of loss Increase control of claim, reserving and claims settlements Fund losses, that cannot be insured

Minimize the insured's level of liability in the event of loss

If a court ordered payment for a loss that was not covered in the policy, even if it was clearly worded, it would be an example of which legal concept?

REASONABLE EXPECTATIONS

Strategies are used by underwriters to prevent Adverse Selection?

Restriction of coverage Refusal to accept a risk Accepting a risk at a higher rate

when a CHANGE needs to be made on the application for Insurance, which is the best method for correcting information?

complete a new application or ask the applicant to initial the correction on the original application