Chapter 1:General Portion:Common to P&C Insurance

Within how many days of requesting an Investigative Consumer Report must an insurer notify the consumer in writing that the report will take place?

3

What party in an unilateral contract is bound and makes a promise to do something?

An insurer(company)

The amount of a claim settlement based on the concept of indemnity is determined by the:

Application of pure risk

The powers that the public assumes a producer have, are known as what types of powers?

Implied

The concept of returning an insured to the financial position they occupied prior to a loss is referred to as the concept of:

Indemnity

Which report is the most thorough?

Investigative consumer reports

The extent to which one may be affected bu a peril is referred to as:

Loss exposure

Which is managed by a board of trustees?

Mutual companies

Mr. Smith's home was destroyed by a hurricane. This describes which of the following terms.

Peril

Who assumes control over an insurance company's funds and management if they become insolvent?

Property and casualty insurance guaranty corporation

When an insurance company agrees to automatically assume a portion of a risk written by another insurance company it is known as?

Reinsurance

When an insurer has the right to cancel a policy because an applicant refused to provide their insurer with pertinent information, this refers to which term?

Rescission

What is the chance of a loss occuring called?

Risk

Which of the following is not the consideration in a policy?

The application given to a prospective insured

What is the privilege of an insurer regarding any ambiguity in a contract?

The privilege is to design the contract with their wording

Insurance is designed to:

To restore an insured's loss

If information was omitted on an application, and an insurer issued a policy, it would be ruled by a court that the questions were not asked by the agent. This best describes which of the following terms?

Waiver