An insurance company that is owned by its stockholders (or shareholders) and is run for the benefit of the stockholders is known as a ____ company.
Stock
An insurance company that has no stockholders and therefore is run for the benefit of its policy owners is called a ____ company.
Mutual
A type of mutual insurance company that requires its customers to join the club in order to buy their insurance is called a ____.
Fraternal
Businesses that join together in order to self insure rather than purchase insurance from an insurance company (group self insurance) are called ____ groups.
Risk retention
An insurance company chartered in your home state is called a ____ insurer. A company chartered in another state of the U.S. is called a foreign insurer. A company chartered in another country is called an alien insurer.
domestic, foreign, alien
Insurance companies that have permission to do business in your state are called _____ insurers.
Admitted
The five required elements of a contract are ___, ____, ____, ____, and _____.
offer, acceptance, consideration, legal purpose and legally competent parties.
A statement on an application for insurance that is taken as the absolute truth is called a _____.
Warranty
A statement on an application that is taken to be true to the best of the applicant's knowledge and belief is called a ____.
Representation
A lie on an application or Proof of Loss statement is called a _____.
Misrepresentation
Hiding the truth or telling a partial truth is called _____.
Concealment
Intentionally cheating another person in order to financially benefit yourself is called _____.
Fraud
A ______ is an individual who is responsible for the financial affairs of another person.
Fiduciary
A _____ is the intentional and voluntary relinquishment of a legal right.
Waiver
Immediate insurance coverage may be available from an agent or producer through the use of an oral or written _____.
Binder
The term ____ refers to a type of contract in which only one party, the insurance company, makes any legally enforceable promises.
Unilateral
Insurance policies are _____ , which means that since the insurance company wrote the policy, if there are any ambiguities in the wording of the contract, then the company is stuck with it. The insured wins!
Contracts of Adhesion
The parts of an insurance policy would include the Insuring Agreement / Coverages, the Conditions, the Exclusions and the _____.
Declarations
The statistical fact that the larger the number of measurements or observations the more accurate any future predictions is called _____.
The Law of Large Numbers
The process of selecting, classifying and pricing insurance risks is called ____.
Underwriting
The federal law regulating the collection and use of consumer information is called the _____.
Fair Credit Reporting Act
The federal law regulating the collection and use of consumer information is called the _____.
Fair Credit Reporting Act
Agents / Producers legally represent ____.
Insurance companies
____ legally represent the insurance purchaser.
Brokers
The powers specifically granted to you in your Agency Agreement are called ____.
Express Authority