General Insurance
Whole Life
-Permanent to age 100 -Lifetime protection -Has cash value
The period of coverage for events such as death or divorce through COBRA
36 months
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 Days
If the insured pays $100 premium for every month with insurance coterage yet the insurer promises to pay $10,000 for the cover losses what characteristics of an insurance contract is as described
Aleatory
Unequal amounts are exchanged between payments and benefits
Aleatory Contract
An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?
Apparent
Consolidated Onibus Reconciliation Act
COBRA
Provides continuation of coverage for terminated employees
COBRA
Peril
Causes of loss insured against in an insurance policy.
In order for an insurer to legally transact insurance, it must obtain?
Certificate of authority
Hazards
Conditions of situations that increase the probability of an insured loss. Can be physical, moral or morale
Which of the following best describes an insurance company that has been formed under the laws of this state
Domestic
Employment Retirement Income Security Act
ERISA
Authorities that an agent can hold
Express and implied
Authority granted to an agent through the agent's contract is referred to as
Express authority: express powers are written into the contract between the insurer and the agent
In insurance transactions fiduciary responsibility means
Handling insurer funds in a trust capacity
Life Insurance
Insures against the financial loss cause by the premature death of the insured.
Casualty Insurance
Insures against the loss and/or damage of property and resulting liabilities.
Health Insurance
Insures against the loss of physical property or the loss of its income producing abilities
An insurer incorporated in which of the following locations would be considered a foreign insurer in Washington D.C.?
Maryland A foreign insurer is an insurance company that is incorporated in another state or territorial possession. Mexico and Canada are foreign countries, so their insurers will be considered alien. An insurer that is incorporated and that operates in Washington D.C. would be considered domestic.
Companies owned and controlled by their policyholders. Any surplus money is returned to the policyholders as dividends
Mutual companies
Retention
Planned assumption of risk by an insured through the use of deductibles, co-payments, or self-insurance.
Which of the following is NOT consideration on the part of an insured?
Promise to submit timely claims
An example of an agents Fiduciary Responsibilities
Promptly forwarding premiums to the insurance company
Pure Risk
Refers t situations that can only result in a loss or no change. There is no opportunity for financial gain. Pure risk is the only type of risk that insurance companies are willing to accept.
An insurance agent's responsibilities include all the following EXCEPT
Represent the client
Only insurance owned by stockholders
Stock insurance
Insurance not available in the regular market is called
Surplus line
A nonadmitted insurer who provides insurance coverage's that are not not available from an admitted insurer is called
Surplus lines insurer.
Not all losses are insurable, and there are certain requirements that must be met before a risk is proper subject for insurance. These requirements include all of the following EXCEPT
The loss is intentional
Risk
The uncertainty or chance of a loss occurring.
A statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
Self-insurance
When the insured accepts the responsibility of the death before the insurance company steps in and pays.
Speculative Risk
involves the opportunity for loss or gain. Example would be gambling. These risks are uninsurable.
Insurance is a contract by which one seeks to protect another from
loss
Ensures the employees receive the pension and other benefits promised by their employers.
ERISA
Term Life
-Temporary -Specific period of time -No cash value
Purpose of Retention
-To reduce expenses and improve cash flow -to increase control of claim reserving and claims settlements -To fund for losses that cannot be insured
Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is
A mutual insurer
What company produces evaluations of insurer financial status often used by the Insurance Department?
AM Best & Company- assigns ratings to life, property and casualty insurance companies based upon the financial stability of the insurer.
Which or the following best describes the concept that the insured pays a small
Aleatory contract
the appearance of, or the assumption of, authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Apparent authority
Representations are written or oral statements made by the applicant which
Are considered true to the best of the applicant's knowledge.
What insurance concept is associated with the words "Weiss" and "Fitch"?
Guides describing company financial integrity
When a person develops a formal program identifying, Evaluating, and funding its losses
Self-insuring
The binding force in any contract
consideration
According to the Law of Agency, a principal is represented by a/an
Agent
