Section 1 Flashcards
(20 cards)
Insurance is defined as the _____ to the insurance company in consideration for the premium
Transfer of PURE risk *
Insurable interest
Economic hardship
Large number of homogeneous units
To be insurable, losses must be
Calculable*
Loss and not gained
Uncertain
Caused by catastrophic perils
Concealment is defined as
Failure to disclose a material fact
_____ insurance protects professional persons such as insurance producers in case they are sued for negligent performance of their duties
Error and omissions (e&o)*
Consideration
Warranty
Reinsurance
____ coverage is usually sold by unauthorized companies such as Lloyds of London
Surplus lines*
Mass marketing
Direct response
Non insurance sponsors
What company has their home office In another state
Domestic
Foreign *
Alien
____ own their own accounts and are not insurance company employees
Independent producers *
Recipricol insurers
Mutual insurers
Stock insurers
If a policy is vague, all fought will be resolved against the insurer. This is call the ___
Doctrine of adhesion*
Legal purpose
Consideration
Apparent authority
A dishonest person presents a
Moral hazard *
Morale hazard
Physical hazard
Speculative risk
____ has a possibility of gain or loss and is not insurable
Speculative risk*
Indemnity
Aleatory
Warranty
A producers ____ is contained in their producers contract
Express authority*
Implied authority
Apparent authority
A chance of loss without any chance of gain is called
Pure risk*
Speculative risk
Hazard
Estoppel
An _____ contract is one where the outcome depends upon chance
Aleatory*
Risk
Binders
Peril
____ write difficult to please business risks
Surplus lines insurers *
Estoppel
Waiver
Indemnity
____ means that even if their is no written contract, but is actual authority the producer has to transact normal business activities
Implied authority *
Apparent authority
Express authority
___ represent the insurance company not the insured
Producers *
Broker
Error and omissions inrsurance insurance won’t pay unless the
Loss was unexpected
*insured was negligent
Insured was dishonest
Loss was catastrophic loss
C o a l stands for what
Consideration offer acceptance and legal purpose*
Consideration agent acceptance and legal purpose
Contract offer acceptance and legal purpose
A producers ____ is expressed written down in the producers contract with the insurer they represent
Binding authority *
Implied authority
Apparent authority
The authority a producer has that is written in the contract is known as
Express authority *
Implied authority
Apparent authority
