general insurance

in what way can an agent demonstrate a high standard of ethics

Putting the client's best interest before their own

What are the three types of authority

implied, apparent/ perceived & express

all of the following would be considered an insurance transaction except (negotiating coverage, soliciting a policy, advising a policyholder regarding a claim

obtaining an insurance license

a Nonadmitted Insurer who provides unique insurance coverage that is not available from an admitted insurer is called

surplus lines insurer

an insurance company receives an application with some information missing and issues the policy anyway. what is this called

waiver

Which of the following is not a characteristic of an insurable risk

Loss must be catastrophic

because an agent is using stationary with the logo of an insurance company applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. what type of agent authority does this describe

apparent

an insurance producer who by contract is bound to write insurance for only one company is classified as

captive/ exclusive agent

Courts will interpret any ambiguity in an insurance contract

In favor of the insured

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a

Lloyd's Association

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?

Reasonable expectations

what method do insurers use to protect themselves against catastrophic losses

Reinsurance

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT ( must be definite, not catastrophic, reasonably predictable )

The loss may be intentional

an individual applies for a life policy. two years ago he suffered a head injury from an accident, so he cannot remember parts of his past but is otherwise competent, he has also been hospitalized for drug abuse but does not remember this when applying for insurance. the insurer issues the policy and learns of his history one year later. what will probably happen

The policy will not be affected

the reduction decrease or disappearance of value of the person or property insured in a policy by a peril insured against is known as

loss

all of the following are marketing arrangements used by insurers except ( direct response marketing system, independent agency system, general agency system)

reinsurance system