Insurance basics

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

what are the 4 elements of an insurance contract

1) agreement 2) consideration 3) competent parties 4) legal propose

What is a warranty in an insurance contract?

An absolutely true statement upon which the validity of the policy is based

who is considered a nonresident agent

An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state

if an insurer meets the states financial requirements and is approved to transact business in the state it is considered

Authorized or admitted

What document is required for an insurance company to transact insurance?

Certificate of authority

What are the three types of insurers

Domicile, Foreign, and alien

the requirements that agents must account for and promptly remit all insurance funds collected is known as what type of responcibility

Fiduciary

what are conditions that increase the chance of loss

Hazards

What two elements are necessary for a life insurance contract to have a legal purpose?

Insurable intrest and consent

if the applicant conceals relevant health info, the applicant presents what type of hazard

Moral

what are the three types of hazards

Physical, Moral, and Morale

Who can usually be granted a temporary license?

Producer's spouse or designee in case the licensed producer dies or becomes disabled

a risk where there is a chance of loss and no gain

Pure risk

to whom may a certificate of authority be issued

To an insurer authorized to transact business in this state

what is the purpose of a cease and desist order

To prevent a producer or insurer from further violating laws for transacting insurance

what are the most common penalties for violations of insurance status

a cease and desist order, a fine, and licensing suspension or revocation

who is an insurgence agent

a person authorized to sell solicit and negotiate insurance contracts

What type of licensee represents the insured

broker

If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?

defamation

what do people use to transfer the risk of loss

insurance

someone who dose not lock their doors presets what type of hazard

morale

who can make a change on an application

only the applicant can make a change and they must initial it.

who must be notified of a producers change of address

the department of insurance

what are producers required to do in order to renew their license

complete continuing education hours and pay a renewal fee

Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?

discrimination

in general who can be excluded from producer licensing and examination requirements

insurance company officers directors or any other employees who do not transact insurance and who do not receive commission for their services

Insurance is a contract that protects the insured from what?

loss

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?

misrepresentation

on its advertisement a company claims that it has funds in its possession that are in fact not available for the payment of losses or claims what is the company guilty of

misrepresentation

an insurance policy pid a non taxable dividend to the insured one year but not the next. what type of insurer issued the policy

mutual (participating)

who may share in the commission for the sale of a life insurance policy

only producers properly licensed for the type of insurance transaction

what is the term for the causes of loss insured against in an policy

perils

what strategies are used by the underwriters to prevent adverse selection

restriction of coverage, refusal to accept a risk, and accepting a risk at a higher rate..

if the commission/ superintendent finds a licensee engaging in an unfair method of compensation or an unfair practice what order will be issued

cease and desist order

what type of insurer is formed in another country

alien

if something is missing from the application what must the agent do

go back to the applicant and have them finish the application.

what are the 5 characteristics of an Ideally Insurable risk

los must be- 1) due to chance 2) definite and mesurable 3) statistically predictable 4) non catastrophic 5) coverage cannot be mandatory

who dose the insurance gent represent?

the insurance company the insurer

who is responsible for the cost associated with the examination of insurers

the insurer who is being examined

What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

twisting

when would a misrepresentation on an application be considered fraud

when it is intentional and material

in insurance when is the offer usually made on a contract

when the insurance application is submitted

in forming an insurance contract when dose the acceptance usually occur?

when the insurer approves a prepaid application?

when dose an insurance policy go into effect

when the policy is delivered and the premium is paid

When can the Commissioner or Director examine insurers?

whenever deemed necessary but at least once every few years

for what reason can a temporary license be issued

For continuation of business in case the licensed producer dies or becomes disabled

when risks with higher probability of loss are seeking insurance more often than other risks this is know as

adverse selection

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

authorized or admitted

is an insurer holds a certificate of authority it is known as what type of insurer

authorized or admitted

Wagering on a sporting event is an example of what type of risk?

speculative

the insurer organized to return a profit to stock holders what type of insurance?

stock company

who owns stock companies

stockholders

According to the Law of Agency, who represents the principal?

the Agent or producer

What type of licensee represents the insurance company?

the agent

if an applicant dose not receive his or her policy who is held responsible

the agent

When agents act within the scope of their contract, their actions will be assumed to be the acts of whom?

insurer

in the agent/ insurer relationship who is considered the principle

insurer

what entity make up the Medical Info bureau

insurers

What kind of risk is insurable?

pure risk

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

rebating

who is responsible for making sure an application is completely filled out

the agent

what is risk in insurance

the uncertainty of loss


Set pelajaran terkait

Chapter 8: Insurance Regulation Quiz

View Set

Science Quiz 2: Types of Cell Division

View Set

Communications test 2 quizzes 5-8

View Set

social psychology week 10 chapter 9

View Set

中文 第三级 第五课 我是谁(语句)

View Set

MGT101 (1,2,3,4,6,7,8,10,11,14,15)

View Set