chief insurance regulator
The State Commissioner, Supervisor, or Director of Insurance is the _________________________ and has the power to issue rules and regulations to enforce state insurance statutes.
non-participating policies
A stock insurance company issues ______________________________________ and is owned by stockholders who may receive taxable corporate dividends as a share of the company's profit.
participating policies
A mutual insurance company issues _____________________________________ and is owned by the policyholders who may receive non-taxable dividends as a return of any divisible surplus.
Reinsurance
_________________________________ is the transfer of risk between insurance companies. The reinsurer assumes some or all of the risk of the ceding, or primary, insurance company.
Domicile
__________________ refers to the state in which an insurer incorporated. A domestic insurer is organized under the laws of the resident state, a foreign insurer is organized under the laws of another state within the United States, and an alien insurer is
Certificate of Authority
An admitted insurer is authorized to do insurance business in the state and is issued a ______________________________ by the state's Department of Insurance.
underwriting department
The ______________________________________ of an insurance company is responsible for the selection of risks (persons and property) to insure and determines the rate to be charged for the amount of coverage to be issued.
Direct Writing System
Independent Agency
Under the _______________________________________, an agent/producer can be the employee of an insurance company that owns the agent's book of business. Under the __________________________, a producer is an independent agent that enters into selling agre
Law of Agency
The __________________________ is a relationship where a Principal authorizes an Agent to act on its behalf in the business of insurance. An act of the agent is an act of the agent's principal.
express authority
implied authority
apparent authority
_________________________________ is written into the producer's agency contract; _____________________________ is that which the public assumes the agent possesses; and _____________________________________ is created when the agent exceeds express autho
Fair Credit Reporting Act (FCRA)
The ________________________________________ protects consumer privacy by ensuring that any data collected by an insurer remains confidential, and is accurate, relevant, and used for a proper and specific purpose.
risk
A ___________________ is the condition where the chance, probability or potential for a loss exists.
peril
A ___________________is the cause or source of a loss.
physical
moral
morale
A hazard increases the probability of a loss. The types of hazards are:
indemnity
The principle of __________________________ means that the insured should not profit from a loss. Instead, it restores the insured to the same financial or economic condition that existed prior to the loss.
property and casualty insurance
life insurance
Insurable interest in ___________________________________________ must exist at the time of the loss but for __________________________, it must exist only at the time of application and policy issuance.
take-it-or-leave-it" basis
The insurance contract is one of adhesion; one party (the insurer) prepares the contract and presents it to the second party (the insured), who must accept it on a _________________________________________________.
Age
Gender
Tobacco Use
Medical History
Hazardous Hobbies
Hazardous Occupations
The underwriting factors used to determine premium include:
representations
Statements made on the application by the applicant that are believed to be true to the best of his/her knowledge, but are not guaranteed to be true, are known as,___________________.
Speculative risk
____________________________ includes a chance of loss or gain in the outcome of an event or action.
void
A misrepresentation can render the contract ________________, if material to the acceptance of the risk.
waiver
A voluntary surrender of a known right, claim, or privilege is known as:
Captive Agency System
General Agency System
Independent Agency System
Direct Writers
Direct Mail/Response
What are the marketing and distribution systems used by insurers?
accidental
what is an essential element of an insurable risk?
warranties
Statements of absolute truth are
McCarran-Ferguson Act of 1945
The _____________________________ gives states the authority to regulate insurance without interference from federal regulation, unless federal law specifically provides otherwise.
adhesion
ambiguity
questionable
In a contract of ________________________________________________________ wording is construed against the party who drew up the contract (ABC Insurance Company) because the applicant had no say in how it was written.
chief insurance regulator
The State Commissioner, Supervisor, or Director of Insurance is the _________________________ and has the power to issue rules and regulations to enforce state insurance statutes.
non-participating policies
A stock insurance company issues ______________________________________ and is owned by stockholders who may receive taxable corporate dividends as a share of the company's profit.
participating policies
A mutual insurance company issues _____________________________________ and is owned by the policyholders who may receive non-taxable dividends as a return of any divisible surplus.
Reinsurance
_________________________________ is the transfer of risk between insurance companies. The reinsurer assumes some or all of the risk of the ceding, or primary, insurance company.
Domicile
__________________ refers to the state in which an insurer incorporated. A domestic insurer is organized under the laws of the resident state, a foreign insurer is organized under the laws of another state within the United States, and an alien insurer is
Certificate of Authority
An admitted insurer is authorized to do insurance business in the state and is issued a ______________________________ by the state's Department of Insurance.
underwriting department
The ______________________________________ of an insurance company is responsible for the selection of risks (persons and property) to insure and determines the rate to be charged for the amount of coverage to be issued.
Direct Writing System
Independent Agency
Under the _______________________________________, an agent/producer can be the employee of an insurance company that owns the agent's book of business. Under the __________________________, a producer is an independent agent that enters into selling agre
Law of Agency
The __________________________ is a relationship where a Principal authorizes an Agent to act on its behalf in the business of insurance. An act of the agent is an act of the agent's principal.
express authority
implied authority
apparent authority
_________________________________ is written into the producer's agency contract; _____________________________ is that which the public assumes the agent possesses; and _____________________________________ is created when the agent exceeds express autho
Fair Credit Reporting Act (FCRA)
The ________________________________________ protects consumer privacy by ensuring that any data collected by an insurer remains confidential, and is accurate, relevant, and used for a proper and specific purpose.
risk
A ___________________ is the condition where the chance, probability or potential for a loss exists.
peril
A ___________________is the cause or source of a loss.
physical
moral
morale
A hazard increases the probability of a loss. The types of hazards are:
indemnity
The principle of __________________________ means that the insured should not profit from a loss. Instead, it restores the insured to the same financial or economic condition that existed prior to the loss.
property and casualty insurance
life insurance
Insurable interest in ___________________________________________ must exist at the time of the loss but for __________________________, it must exist only at the time of application and policy issuance.
take-it-or-leave-it" basis
The insurance contract is one of adhesion; one party (the insurer) prepares the contract and presents it to the second party (the insured), who must accept it on a _________________________________________________.
Age
Gender
Tobacco Use
Medical History
Hazardous Hobbies
Hazardous Occupations
The underwriting factors used to determine premium include:
representations
Statements made on the application by the applicant that are believed to be true to the best of his/her knowledge, but are not guaranteed to be true, are known as,___________________.
Speculative risk
____________________________ includes a chance of loss or gain in the outcome of an event or action.
void
A misrepresentation can render the contract ________________, if material to the acceptance of the risk.
waiver
A voluntary surrender of a known right, claim, or privilege is known as:
Captive Agency System
General Agency System
Independent Agency System
Direct Writers
Direct Mail/Response
What are the marketing and distribution systems used by insurers?
accidental
what is an essential element of an insurable risk?
warranties
Statements of absolute truth are
McCarran-Ferguson Act of 1945
The _____________________________ gives states the authority to regulate insurance without interference from federal regulation, unless federal law specifically provides otherwise.
adhesion
ambiguity
questionable
In a contract of ________________________________________________________ wording is construed against the party who drew up the contract (ABC Insurance Company) because the applicant had no say in how it was written.