General Insurance

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Whole Life

-Permanent to age 100 -Lifetime protection -Has cash value

The period of coverage for events such as death or divorce through COBRA

36 months

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 Days

If the insured pays $100 premium for every month with insurance coterage yet the insurer promises to pay $10,000 for the cover losses what characteristics of an insurance contract is as described

Aleatory

Unequal amounts are exchanged between payments and benefits

Aleatory Contract

An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?

Apparent

Consolidated Onibus Reconciliation Act

COBRA

Provides continuation of coverage for terminated employees

COBRA

Peril

Causes of loss insured against in an insurance policy.

In order for an insurer to legally transact insurance, it must obtain?

Certificate of authority

Hazards

Conditions of situations that increase the probability of an insured loss. Can be physical, moral or morale

Which of the following best describes an insurance company that has been formed under the laws of this state

Domestic

Employment Retirement Income Security Act

ERISA

Authorities that an agent can hold

Express and implied

Authority granted to an agent through the agent's contract is referred to as

Express authority: express powers are written into the contract between the insurer and the agent

In insurance transactions fiduciary responsibility means

Handling insurer funds in a trust capacity

Life Insurance

Insures against the financial loss cause by the premature death of the insured.

Casualty Insurance

Insures against the loss and/or damage of property and resulting liabilities.

Health Insurance

Insures against the loss of physical property or the loss of its income producing abilities

An insurer incorporated in which of the following locations would be considered a foreign insurer in Washington D.C.?

Maryland A foreign insurer is an insurance company that is incorporated in another state or territorial possession. Mexico and Canada are foreign countries, so their insurers will be considered alien. An insurer that is incorporated and that operates in Washington D.C. would be considered domestic.

Companies owned and controlled by their policyholders. Any surplus money is returned to the policyholders as dividends

Mutual companies

Retention

Planned assumption of risk by an insured through the use of deductibles, co-payments, or self-insurance.

Which of the following is NOT consideration on the part of an insured?

Promise to submit timely claims

An example of an agents Fiduciary Responsibilities

Promptly forwarding premiums to the insurance company

Pure Risk

Refers t situations that can only result in a loss or no change. There is no opportunity for financial gain. Pure risk is the only type of risk that insurance companies are willing to accept.

An insurance agent's responsibilities include all the following EXCEPT

Represent the client

Only insurance owned by stockholders

Stock insurance

Insurance not available in the regular market is called

Surplus line

A nonadmitted insurer who provides insurance coverage's that are not not available from an admitted insurer is called

Surplus lines insurer.

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

The loss is intentional

Risk

The uncertainty or chance of a loss occurring.

A statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

Self-insurance

When the insured accepts the responsibility of the death before the insurance company steps in and pays.

Speculative Risk

involves the opportunity for loss or gain. Example would be gambling. These risks are uninsurable.

Insurance is a contract by which one seeks to protect another from

loss

Ensures the employees receive the pension and other benefits promised by their employers.

ERISA

Term Life

-Temporary -Specific period of time -No cash value

Purpose of Retention

-To reduce expenses and improve cash flow -to increase control of claim reserving and claims settlements -To fund for losses that cannot be insured

Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is

A mutual insurer

What company produces evaluations of insurer financial status often used by the Insurance Department?

AM Best & Company- assigns ratings to life, property and casualty insurance companies based upon the financial stability of the insurer.

Which or the following best describes the concept that the insured pays a small

Aleatory contract

the appearance of, or the assumption of, authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.

Apparent authority

Representations are written or oral statements made by the applicant which

Are considered true to the best of the applicant's knowledge.

What insurance concept is associated with the words "Weiss" and "Fitch"?

Guides describing company financial integrity

When a person develops a formal program identifying, Evaluating, and funding its losses

Self-insuring

The binding force in any contract

consideration

According to the Law of Agency, a principal is represented by a/an

Agent


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