Chapter 5 Terms Flashcards
(9 cards)
What is an Agent/Producer?
A legal representative of an insurance company; includes agents and brokers. Agents are the agents of the insurer.
Who is the Applicant or proposed insured?
A person applying for insurance.
What does Consent mean in insurance?
Permission to do something.
What is Insurable interest?
The policyowner facing the possibility of losing something of value in the event of loss.
What is an Insurance policy?
A contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events.
Who is the Insured?
The person covered by the insurance policy; may or may not be the policyowner.
What is an Insurer (principal)?
The company who issues an insurance policy.
Who is the Policyowner?
The person entitled to exercise the rights and privileges in the policy.
What is a Premium?
The money paid to the insurance company for the insurance policy.
