definitions Flashcards
(45 cards)
Twisting
Inducing a client to get business with you by generally lying or spreading false shit about competitors, either by voice or mailer.
Assingment
A signed legal transfer of ones interest or benefits in a policy to another party. Must have the written approval of the policyowner and the insurance company.
Specified hazards listed in a policy for which benefits will not be paid are known as __________.
exclusions
The possibility of a loss is known as a/an _______
risk
_________is the act of having an insured cancel a current, inforce policy and buy a new one (may be done legally under rare conditions).
Replacement
Deliberate failure to reveal material facts that would affect the validity of a policy of insurance is a/an ______
concealment
______ is a person or company having possession of property committed in trust from the owner.
A bailee
The practice of a producer inducing a policy owner in one company to switch his policy to another company by using unfair advertising practices, incorrect premium quotations or by misrepresentation is known as ____.
twisting
An insurance company operating in one state but is incorporated or has its home office in another state is called a/an ________ company.
Foreign
A signed legal transfer of ones interest or benefits in a policy to another party. Must have the written approval of the policyowner and the insurance company.
Assignment
What term most closely supports Indemnification?
Insurable Interest
The process, which is part of risk Management, through which an insurer determines whether and on what basis an insurance application will be accepted is called ____ .
Underwriting
A _____ is a document given to an applicant by the Property and Casualty producer when he/she pays a premium at the time of application. This document gives unconditional coverage by the insurance company.
Binder
In a homeowners policy the term WATERCRAFT means
an inboard motor powered boat owned or operated by the insured that has 50 horsepower or less, or a sailing vessel of 25 ft. or less or any boat powered by an outboard motor of 25 horsepower or less.
A producer acting as an agent in soliciting risks for a specific insurer, who has authority to bind risks for that same insurer, and collect premiums on behalf of the insurer, must be ____.
appointed with that insurance company
__________ means the sum of money required to pay for damages or lost property, computed on the basis of replacement value (at the time of the loss), less its depreciation.
Actual Cash Value (ACV)
On the part of an insurer or producer, falsely representing the terms, benefits or privileges of a policy. On the part of an applicant, falsely representing the health, driving record or other condition of the proposed insured.
Misrepresentation
A statement made by an applicant in the application which is believed to be true is known as a ________.
Representation
This is an element of an insurance contract that each party to the contract agrees to give something of value. The company for payment of the premium by the insured agrees to pay for certain losses.
Consideration
_______ means an unintended, unforeseen and unexpected event that takes place at a specific time and location, that causes bodily injury and/or property damage.
An accident
______ is a policy (or floater) providing coverage for loss of or damage to property of bailees customers, payable to customers, regardless of whether the bailee is at fault or not for the loss.
Bailees Customers Coverage
A licensed producer who does not represent a specific company, but places business among various companies and is regarded as a representative of the insured rather than an insurance company is called a/an _________.
Broker
Which of the following is a federal law requiring an individual to be informed that her credit is being investigated by an inspection company and how that information will be used (consumer protection).
Fair Credit Reporting Act
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