General Insurance

When risks with higher probability of laws are seeking insurance more often than other risks, this is known as what

Adverse selection

According to the law of agency a principal is represented by whom

Agent or producer

What are the four elements of an insurance contract

Agreement (offer and acceptance ), consideration ,competent parties ,and legal purpose

A state issue document empowering an insurance company to become an admitted insurer is called what

Certificate of authority

When a change needs to be made on the application for insurance, which is the best method for correcting the information

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

Insurers are classified according to their domicile what are the three types of insurers

Domestic, foreign, and alien

What are the three types of agent authority

Express, implied, and apparent

Insurance is used to transfer what to the insurance company

Financial responsibility for loss

What type of insurer is a voluntary formed organization that provides insurance benefits for members of an affiliated lodge or religious organization with a representative form of government

Fraternal insurer

What two elements are necessary for life insurance contract to have legal

Insurable interest and consent

What do individuals use to transfer their risk of loss to a larger group

Insurance

Whom does an insurance agent represent

Insurance company

And the agent/insurer relationship who is considered the principal

Insurer

When agents act within the scope of their contract their actions will be assumed to be the acts of whom

Insurer

What entities make up the medical information bureau

Insurers

What are the five characteristics of an ideally insurable risk

Lost must be due to chance ,definite in measurable ,statistically predictable, not catastrophic, coverage cannot be mandatory

An applicant conceals relevant health information on the application. The applicant presents what type of hazard

Moral

What is the term for the causes of loss insured against in an insurance policy

Peril

What are the three types of hazards

Physical, moral, and morale

If an insurer needs to obtain information about the applicant from investigators what is the insurer required to do

Provide the applicant a disclosure authorization notice

What type of risk is insurable

Pure

A situation in which a person can only experience a loss and no gain presents what type of risk

Pure risk

What are the strategies used by underwriters to prevent adverse selection

Restriction of coverage ,refusal to accept a risk , and accepting a risk at a higher rate

What are the strategies used by underwriters to prevent adverse selection

Restriction of coverage ,refusal to accept a risk, and accepting a risk at a higher rate

What is the best way to handle incomplete insurance applications

Return the application to the applicant for completion

If an agent tells to obtain the applicant signature on the insurance application what must insurer do

Send the application back to the applicant for signature

Wagering on a sporting event is known as what type of risk

Speculative

The insurer organized to return a profit to the stockholders is what type of insurer?

Stock company

Who owns stock companies

Stockholders

If an applicant does not receive his or her insurance policy he would be held responsible

The agent

What laws protect consumers from the circulation of inaccurate or obsolete information

The fair credit reporting act

For the purpose of insurance what is risk?

Uncertainty of loss

What is the name of the process that insurance companies use to determine whether or not an applicant is insurable

Underwriting

When would a misrepresentation on an insurance application we considered fraud

When it is intentional and material

A state issued document empowering an insurance company to become an admitted insurer is called what

Certificate of authority

Insurance is a contract that protects the insured from what

Loss

What law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated

Law of large numbers

The reduction decrease or disappearance of value of the person or property insured in the policy is known as wet

Loss

The reduction decrease our disappearance of value of the person or property insured in a policy is known as what

Loss

The type of insurance company organized to return any surplus money to his policy owners is known as what

Mutual company

The insurer organized to report a profit to the stockholders is what type of insurer

Stock company

In insurance when is the offer usually made on the contract

When the insurance application is submitted

In forming an insurance contract when does an acceptance usually occur

When the insurer approves a pre-paid application

When does an insurance policy go into effect

When the policy is delivered and the premium is paid

What type of insurance is formed under the laws of another country

Alien

What type of insurer Is formed under the laws of another country

Alien

In order to transact insurance within a given state an alien insurer must first obtain what

Certificate of authority

In order to transact insurance within a given state in alien insurer must first obtain what

Certificate of authority

What type of report provides information about the applicants hobbies habits and financial status

Inspection report

What law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated

Law of large number

What are the five characteristics of an ideally insurable risk

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

An applicant conceals relevant health information on the application. that applicant presents what type of Hazzard

Moral

What is the name of the process that insurance companies use to determine whether or not the applicant is insurable

Underwriting

When would a misrepresentation on the insurance application be considered fraud

When it is intentional and material

In insurance when is the offer usually made on a contract

When the insurance application is submitted

What Document is required for an insurance company to transact insurance

Certificate of authority

An insurance company that is formed under the laws of another state is known as what type of insurer

Foreign

Conditions that increase the chance of a loss are known as what

Hazards

A person who does not lock the doors to his or her house shows and in different attitude this person represents what type of Hazzard

Morale

If an applicant does not receive his or her insurance policy who would be held responsible

The agent

Who's responsibility is it to determine that all the questions on an insurance application are answered

The agents

In an insurance contract when does acceptance usually occur

When the insurer approves a pre-paid application

An insurance company that is formed under the laws of another state is known as what type of insurer?

Foreign

And insurance policy paid a non-taxable dividend to the insured one year, and nothing the next. from what type of insurer did the insured purchased the policy

Mutual

If an agent feels to obtain the applicant signature on the insurance application what must insurer do

Send the application back to the applicant for signature

And insurance company is domiciled in California and transacts insurance in Nevada. What is the insurer's classification in Nevada

Foreign

And insurance company is domiciled in California and transacts insurance in Texas. what is the insurers classification in Texas

Foreign