Chapter 3 insurance marketplace

Gram leach bililey act

In 1990 in order to repair oh part of the glass said Gail act of 1933 removing barriers in the financial service market among banks security brokerage and insurance companies that prohibited any one institution from I think as a combination of an investment bank a commercial bank and insurance company

supplement illustrations

• it is attended to Accompanied Buy or preceded by a basic illustration that complies with this chapter The non-guarantee element shown are not more favorable to the policy owner and I'll corresponding elements based on the scale used in the basic illustration It contains the same statement as required as a basic illustration under subdivision Or a policy that has a

Types of insurers

Accoctiation Organization partnership business trust Limited liability or Corporation any person who is capable of making contract

Professionalism

Agent should also conduct business and professional manner this includes avoid any type of high pressure sales tactics

Competency

Agent should also know and understand the duties of their job which include continuously improving and updating their knowledge of the industry products and other related information

Errors and omissions coverage

Type a professional liability insurance that protects individuals and company again claims that are made by clients for inadequate work or negligent actions

Honesty

Agents should conduct business fairly and honestly including not concealing or miss representing any information

Rule regarding sales to seniors and the types of insurance

All insurance brokers agents and other that are engaged in the transactions of Insurance oh a prospect of insured who is age 65 or older a duty of honesty good faith and good fair dealing

Accident and health agent

An accident and health agent is entitled to current insurance coverage for sickness bodily injury and accidental death including benefits for disability income 24 hour care coverage in long-term care

Insurance agent versus solicitor

An insurance agent is authorize appointed by am on behalf of animated insurance company to transact all classes of insurance business other then life disability or help you joint

Insurance agent

An insurance agent is authorized appointed by the behalf of ANT and made insurance company to transact all classes of insurance business other then life disability or health insurance

Insurance broker

An insurance broker is a person who is become compensation and on the behalf of another person transact insurance other than life disability or health insurance with but not on the behalf of an insuer

Apparent authority

Another name for Apparent authority is perceived authority this type authority gives the impression that already exist the authority may actually not exist therefore this type of Dority when the insurance agent stubs over his or her actual authority either expressed or implied

Fiduciary

Applicants and insured place their faith trust and confidence in their agents and that the agent will suck your proper insurance coverage for them and will forward their premiums to the insurer

Conservation

Applies to insurers and persons intend to conduct insurance business in the state of California who needs a certified and authority to transact

Prohibited conduct

Based on regulation that is set forth by California insurance law there are certain prohibited activities of which insurance producers may levied fines and or penalties if they undertake such activities

Require a recording keeping

Every inshore that is a made in a state of California to transact the class of life or disability or both must maintain certain records that are specified by the California insurance code

Express authority

Express authority is the specific authority that A principle or inshore gives the agent in writing therefore this type of agent is actually expressed in the agency contract

Insurer divisions

For a Life insurance company to operate successfully it must process several functional areas all of which must coordinate their functions efficiently marketing sales

Prohibition of free insurance

In addition knowing sure shall participate in any plan to offer or affect any kind or kind of insurance annuities in the state of California as a indefinite to the purchase or rental by the public of any property real or personal or mixed or service without any separate charge to the insured or such Insurance

Policy illustrations

In order to protect customers in foster customers education it is in the intent of the legislature to ensure the illustrations to not mislead purchasers of life insurance and that illustrations are made more understandable by having standard format prescribe standards to be followed when used and by providing certain disclosures that are required

Administrator

Insurance administers refer to any person who collects any charge or Premium form or who adjust or settles claims on California residents in connection with life health or annuity coverages

Insurance producers

Insurance companies and agents and brokers who are in license through them must operate underA principal called agency law

Agency system

Insurance company built it on agency distributing System by recruiting and training agents to exclusively represent the insured

Underwriting

Insurance sales agent takes an application from a proposed insured they will send it to either there or at your home office or to the branch office for proper underwriting The responsibility of underwriting department is to classify all the applications for coverage correctly as well as to charge premium rates that are appropriate for the type of risk that is being taken on claims in policyholder services actuarial focuses on developing and pricing products and ecstatically surrender non-forfeiture and loan value

Life license

Is a person who is authorized to act as life agent on the behalf of a life insurance or disability insurance to friends at life insurance accidental and health insurance or life and accident health insurance

Life only agent

Life slowly agent are entitled to try and act insurance coverage on human lives including benefits of in Endowment and annuities and may include benefits in the event of death or dismemberment meant by accident and benefits for disability income

The California insurance code

Name of ensure • name and business address of the producer or insured authorized representative • name age and sex of proposed insured • underlining or rating classification upon which the illustration is bass Generic name of the policy the company product name if it is different and the form number initial death benefit

Primary components of agency law

The acts of an agent within the hope of their authority are asked of the principal • A contract that is completed by an agent on behalf of the principle is a contact that is considered to have been completed by a principal• payment that Made to an agency on behalf of the principal or payment to the principal•Knowledge of the agency is presumed to also be knowledge of the principal

Insurance distribution system

The insurance industry uses a verity of different dispution systems in order to provide insurance coverage to customers

Require applications notifications in recording keeping

The name is too similar to the name that has already been field and order is in use by another license• The use of the name may be misleading to the public• The name implies that the wise it is and it sure motor club hospital service plan or entitled to engage in activities that are actual not permitted under the lights and stuff are currently held or being applied for

Life settlement broker

A person who on behalf of a owner and for a free commission or other bailable consideration offers or attempts to negate life settlement contracts between an owner and providers

Implied authority

Implied authority is not provided to the agent in writing nor is it Specifically weekly expressed by the insurer is writing

Important educational objectives

Place to customers interest first No your job and continue to increase your level of competitive I didn't find the customers needs and recommend product and service that meets those neat

Direct response

Potential policyholders will complete an application for coverage and then mail the application into the insurance company for approval

Efforts to combat fraud

Reports to national automobile Theft bureau Every insurer must report leverage private passenger automobiles that are involved in therapy and salvage total losses including the Vin number and any other required information to the national autoMobile theft

Insolvent insurer

That does not have the funds to meet all the financial obligations that is contracted to me

Definition of transact

•solicitation •negotiations preliminary to execution • execution of a contract of insurance • actions of matter subsequence it to execution of the contract and arising out of it