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Flashcards in General Insurance Deck (59)
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1

Agent/Producer

A legal representative of an insurance company. Producer includes agents and brokers. Agents are agents of the insurer

2

Applicant or proposed insured

Someone applying for insurance

3

Broker

An insurance producer not appointed by the insurer and is deemed to represent the client.

4

Insurance policy

A contract between a policyowner and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events

5

Insured

The person covered by the insurance policy. This person may or may not be the policy owner.

6

Insurer/Principal

The company that issues the policy

7

Policyowner

The person entitled to exercise the rights and privileges in the policy.

8

Premium

The money paid to the company for the policy

9

Reciprocity/reciprocal

A mutual interchange of rights and privileges

10

What costs less Term or Whole life?

Term

11

What can you take a loan from term or whole life?

Whole life

12

When does an insurance policy go into effect?

When the policy is delivered and the premium is paid

13

What document is required for an insurance company to transact insurance?

Certificate of authority

14

What is the term for the causes of loss insured against in an insurance policy?

Peril

15

What type of insurer is formed under the laws of another country?

Alien

16

What entities make up the medical information bureau?

Insurers

17

An insurance policy paid a non taxable dividend to the insured one year, and then nothing the next. From what type of insurer did the insured purchase the policy?

Mutual

18

When would a misrepresentation on an insurance application be considered fraud?

When it’s intentional and material

19

Wagering on a sporting event is known as what type of risk?

Speculative

20

If an applicant does not receive his or her insurance policy, who would be held responsible?

The agent

21

An insurance co is domiciled in California and transacts insurance in Nevada. What is the insurers classification in Nevada?

Foreign

22

An applicant conceals relevant health information on the application. The applicant presents what type of hazard?

Moral

23

Whose responsibility is it to determine that all the questions on an insurance application are answered?

The agents

24

The requirement that agents must account for and promptly remit all insurance funds collected is known as what type of agent responsibility?

Fiduciary

25

In insurance, when is the offer usually made on the contract?

When the application is submitted

26

An insurance company formed under the laws of another state is known as what type of co?

Foreign

27

What type of risk is insurable?

Pure

28

Who owns stock companies?

Stockholders

29

What do individuals use to transfer their risk of loss to a larger group?

Insurance

30

The insurer organized to return a profit to the stockholders is what type of insurer?

Stock company