Exam Queen Study
People who are risker than the average person
Adverse selection
people who are more prone to losses than the average person
Adverse selection
How does reinsurance benefit the insurer
It helps protects the insurer against catastrophic losses
talking badly about the financial condition of another company
Defamation
*Due to chance *Definite and measurable *Statistically Predictable *Not catastrophic *Randomly selected/ large loss exposure
Elements of Insurable Risk
The right to enforce that right in the future is no longer available
Estoppel
The written authority of an insurance producer that is in the agency contract
Express
sharing, transfer, avoidance, reduction, and retention
Methods for handling risks
The main purpose of the fair credit reporting act is?
Protect against circulation of inaccurate obsolete information
Insurance that is a result of a agreements of indemnity between subscribers is known as
Reciprocal
What does Cease and Desist mean?
Stop immediately
Government insurance programs ae funded by
Taxes
According to the general rules of agency, an agent represents
The Insurer
selling more to family than the public
controlled business
which of the following is a competent party?
a lawyer on daily medication for blood sugar levels
Insurers submit financial statements
annually
Assumed or perceived by the customer
apparent
you cannot act as an agent for a company until you have an
appointment
which is not one of the available methods for dealing with exposure to risk?
ascertain the risk
a customer provides premium and application, this is known as
consideration
when both parties bring something of vale to the table
consideration
authority given in the contract w/ the insurer
express
the authority which is given by the insurer that is not specified is
implied
who pays for an examination done by the commissioner?
insurer
if you commit an unfair trade practice you are guilty of a
misdemeanor
when can a commissioner take away your license?
only after a hearing
the cause of a loss is
peril
the purpose of the commissioner closing examinations
protect the public
offering cash to get a client to buy a policy
rebating
insurance is regulation by
state government
charging people in the same class different premiums
unfair discrimination
a contract that is one sided
unilateral
To voluntarily give up a known right
waiver
when are you share commisson?
when both agents are duly licensed
