General Insurance quiz
insurance company receives an application with some information missing and issues the policy anyway
waiver
what documentation grants express authority to an agent
agents contract with the principal
Rescission
an insurer cancels a policy after it has been issued and refunds all premiums
type of agent authority is also called "perceived authority
apparent
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage this is an example
concealment
An insurer neglects to pay legitimate claim that is covered under the terms of the policy.
consideration
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what?
consideration
the authority granted to an agent through the agents contract is referred to as
express authority
Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization
fraternal benefit society
insurance principle states that is a policy allows for a greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost.
indemnity
which statement regarding insurable risks is not correct
insureds cannot be randomly selected
Unilateral contract
one-sided:only one part make an enforceable promise
what is not an example of risk retention
premiums
what is the definition of fiduciary responsibility
promptly forwarding premiums to the insurance company
Which services are associated with standard and poors and AM best
rating the financial strength of insurance companies
Adverse selection
risks with higher probability of loss seeking insurance more often than other risk
An insured wants to transfer his personal insurance policy to a friend. under what conditions would this be possible
the insured will need written consent of the insurer
When an individual purchases insurance, what risk management technique is he or she practicing?
transfer
when an individual purchases insurance, what risk management technique is he or she practicing
transfer
which is the basis for a claim against an insurance policy
loss
tornado that destroys property would be an example of
a peril