Insurance Unit 2

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

What does the state require for continuing education if you hold a license 6+ years?

20 hours and 5 in ethics

What are the rating services?

A.M. Best Company; S & P; Moody's; Fitch

Agent

Represent the company, has an agent contract; Classified as captive

What does the state require for continuing education if you hold a license for less than 6 years?

24 hours and 5 must be in ethics

What is the grace period in an industrial policy?

4 weeks= 28 days

Independent Agency System

Also known as American Agency System; Sell everything; work with multiple carriers

What is the Safe Guaranty Association?

Association to support insurers to protect consumers if an insurer becomes insolvent and cannot pay

Reinsurer

Assume a portion of the risk from the ceding company; Insure insurers not policy owners or public

A reinsurer is a company that?

Assumes a portion of the risk from another insurers

How are agents classified?

Career, captive and independent

Ceding Company

Company that is transferring the risk.

All of the following methods support the role of insurance through agents and brokers except?

Direct selling System

Stock Insurers

Do not participate in dividends

Personal Producing General Agency (PPGA)

Do not recruit, train or supervise (ex: State Farm)

Domestic Insurers

Doing business in the state in which it was incorporated Ex Florida/Florida

An insurance organized ad headquartered in Florida can be described as what type of company?

Domestic

How do you describe insurance companies and site of incorporation?

Domestic, Foreign, Alien

The Buyers Guide is intended to accomplish all of the following except?t

Ensure that buyers obtain the lowest price possible

Role of conversion

If client has more than one policy they can combine into 1 policy without having to go through underwriting

What are the different types of Home Service Insurers?

Industrial Policy, Debit Policy, Credit Policy

In an insurance transaction license agents legally represent which of the following?

Insurer

Alien

Insurers incorporated in a country other than the U.S Ex: Florida/Canada

How is the safe Guaranty Association funded?

It is funded by insurance companies through assessments

Foreign Insurers

License and doing business in a state other than the state incorporated Ex: Florida/Georgia

Which of the following is not service producer?

Loyd's of London

The head of state office of insurance regulation is responsible for all of the following except?

Making insurance laws

Reciprocal Insurers

Managed by attorney in fact; have no stockholders; owners are the policyholders

Fraternal Benefit Societies

Non-profit; Issue insurance certificate to member

Direct Selling System

Not allowed in Florida unless you have a license

Direct Selling

Not allowed in Florida unless you have a license; Selling policies through ads, no agent or broker is involved

Loyd's of London

Not an insurance company; group of individuals or companies that underwrite insurance

Mutual Insurers

Participate in dvidends

Career Agency System

Recruit, train and supervise; Supervised by a general agent who has a vested right in the business (Ex: AFLAC)

Which of the following statements regarding types of insurers is not correct?

Reinsurers usually deal with group insurance

Broker

Represents the buyer

In addition to the state, the organization that regulates variable life and variable annuities is the?

Securities and Exchange Commission (SEC)

Home Service Insurers

Small policies in the amount of 1,000-2,000; Premiums are collected weekly or monthly by the agent.

The state guarantee association guarantees?

That a claim will be paid if an insurer becomes insolvent

Regarding landmark cases and laws involving the regulation of insurance, which of the following statements is not correct?

The Federal Trade Commission (FTC) directly supervises all insurance marketing activities.

What happens if a company is unable to pay its claims?

The Safe Guaranty Association pay it

What is the NAIC most notable for?

The creation of the Advertising Code and Th Unfair Trade Practice Act

What is grace period?

Time given if a insurer forgets to pay their premium (Usually 30 days)

NAIC National Association of Insurers

To protect insurers not insurance companies

Captive Career Agent

Works for one insurance company and sells only that company policies.

Risk Retention Group (RRG)

mutual insurance company formed to insure people in the same business/occupation (dentist, Doctor)

In Florida properly licensed appointed agents may act as brokers in insurance transactions in which case they may legally represent?

the applicant and the insurer


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