Chapter 1

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

What is a buy sell agreement

Agreements that helps establish what happens to a company if one owner dies.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements

Consideration. Legal purpose. Offer and acceptance.

The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called

expenses

There are three income periods

family dependency, preretirement, and retirement.

Which of the following is goal of risk retention?

•To reduce expenses and improve cash flow •To increase control of claim reserving and claims settlements •To fund losses that cannot be insured