GENERAL INSURANCE
A reduction, decrease, or disappearance of value of a person or property insured by a policy by a peril is known as?
A loss
The type of company organized to return any surplus money to their policy holder is?
A mutual insurer
What are three examples of risk retention?
Co-payments, self insurance, and deductibles
An insurer neglects to pay a legitimate claim that is covered under terms of the policy.What best describes what the insurer violated?
Consideration
Authority granted to an agent through the agents contract is referred to as?
Express authority
Certificates of Authority are not insured by what?
Group insurance participants
A participating insurance may do what?
Pay dividends to the policy holder
If a court ordered payment for a loss that was not coveredin the policy even if it was clearly worded, is an example of what legal concept?
Reasonable Expectations
This type of insurance provider would be considered a risk sharing arrangment
Reciprocal
What is not an example of risk retention?
Premiums
A disaster that destorys property would be an example of what?
A peril
What is an example of apparent authority of an agent appointed by an insurer?
An agent accepts a premium payment after the end of the grace period
An agents accepts the premium payment 35 days after it is due, telling the insured that there will be no problem keeping the policy in place represents what type of authority?
Apparent authority
An insurer that holds a Certificate of Authority in a state in which it transacts business is considered a what?
Authorized insurer
What authority is not stated in an agents contract but is required for the agent to conduct business?
Implied Authority
In insurance transactions, fiduciary responsibility means?
handling insurer funds in a trust capacity
This insurance principle states the insured may only receive benefits for the amount lost?
indemnity
What is not true regarding insurable risks?
Insured cannot be randomly selected
To insure legal purpose of a life insurance policy it MUST have what two things?
Insurable intrest and consent
What is an example of an agents fiduciary responsibilities?
Promptly forwarding premiums to the insurance company
A situation which a person can only have a lose or no change represents?
Pure risk