General Insurance quiz

insurance company receives an application with some information missing and issues the policy anyway

waiver

what documentation grants express authority to an agent

agents contract with the principal

Rescission

an insurer cancels a policy after it has been issued and refunds all premiums

type of agent authority is also called "perceived authority

apparent

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage this is an example

concealment

An insurer neglects to pay legitimate claim that is covered under the terms of the policy.

consideration

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what?

consideration

the authority granted to an agent through the agents contract is referred to as

express authority

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization

fraternal benefit society

insurance principle states that is a policy allows for a greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost.

indemnity

which statement regarding insurable risks is not correct

insureds cannot be randomly selected

Unilateral contract

one-sided:only one part make an enforceable promise

what is not an example of risk retention

premiums

what is the definition of fiduciary responsibility

promptly forwarding premiums to the insurance company

Which services are associated with standard and poors and AM best

rating the financial strength of insurance companies

Adverse selection

risks with higher probability of loss seeking insurance more often than other risk

An insured wants to transfer his personal insurance policy to a friend. under what conditions would this be possible

the insured will need written consent of the insurer

When an individual purchases insurance, what risk management technique is he or she practicing?

transfer

when an individual purchases insurance, what risk management technique is he or she practicing

transfer

which is the basis for a claim against an insurance policy

loss

tornado that destroys property would be an example of

a peril