Chapter 10 Terms

Question 1

Cease and desist

Answer 1

to stop or discontinue

Question 2

Coercion

Answer 2

forceful act or threat aimed to influence a person to act against their will

Question 3

Commission

Answer 3

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Question 4

Commissioner

Answer 4

the head of the State Department of Insurance

Question 5

Exempt

Answer 5

not subject to an obligation

Question 6

Home office

Answer 6

insurer’s headquarters, principal place of business

Question 7

Inducement

Answer 7

an offer that attempts to influence the other party

Question 8

Insolvent

Answer 8

unable to meet financial obligations

Question 9

Moral turpitude

Answer 9

conduct that is contrary to community standards of justice, honesty or good morals

Question 10

Reciprocity

Answer 10

a mutual interchange of rights and privileges

Question 11

Restitution

Answer 11

restoration to the original condition or repayment

Question 12

Statute

Answer 12

a formal written law enacted by legislature; insurance statutes can be found in the state Insurance Code