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Definition
| is anything that increases the chance that loss wil occur or increases the severity of a loss |
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Moral hazard legal hazard
Morale hazard
physical hazard |
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Definition
| associated w/ mental attitudes, behaviors, ethics and habits. ex, fraudlent cl |
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Term
| what does underwriting do? |
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Definition
| evaluate application, select rating factors,match policy terms with insured, |
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| 3 types of private insurance |
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Definition
| stock, mutal, and reciprical |
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| what is benefit of insurane |
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Definition
| gives peace of mine,can also secure credit |
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Definition
| retain all or part of the risk...a deductable |
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Definition
| company share risk with another company/ 2 or more companies insure same thing |
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| what is marketing distribution systems...there are 4 types |
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Definition
1-DIRECT WRITING, 2-DIRECT MAIL- mass mailing, 3-EXCLUSIVE AGENT- work for a company (agent can't work for anyone else.) 5-INDEPENDENT AGENT- can work for several companies.
personal lines licie |
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Definition
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Definition
| does not have certificate of authority- have to go through a surplus lines licesne |
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Term
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Definition
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| MIB- medical information Bereau |
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Term
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Definition
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| Why used in investigationsphysician statements |
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Definition
| adgent works on behalf of the company |
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Definition
| brokers works on behalf of consumer and can sell more than |
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Definition
| established a domicil in another country |
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Definition
| established domicil in another state |
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Term
There are 3 types of Private Insurers
what are they? |
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Definition
| Stock, Mutual, and Reciprocal |
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Term
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Definition
| companies share the risks and premiums |
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Term
Marketing Distribution
what is it and what are they? |
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Definition
the type of advertising you do to get business.
Direct Writing--you write the policy yourself
Direct Mail-- flyers
Exclusive agencts- work only for one company
Independent agents - able to write for several agents |
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Term
Investigative agencies
what are there 5 areas?
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Definition
personal interviews
MIB-medical insurance Bearu
Financial Reports
DMV
Physician Statements |
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Term
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Definition
| they work on behalf of the company |
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Term
| who do solicitors work for? |
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Definition
works for an employer, selling insurance under and agent
cannot be both solicitor and agent. |
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Definition
brokers work the client -try to find client the best deal
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Definition
Works with agents and is appointed with many companies.
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Term
| Fire and Casualty licenscee |
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Definition
| Licensed to transact Hazard insurance and liabilty policies including health and disability insurance |
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Term
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Definition
| Cannot transact Health Disability or Commercial |
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Term
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Definition
| Assists in settling claims either for acompany or for an insured |
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Definition
| Not authorizie to transact business in CA, escept through a Surplus, lines broker. |
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| Surplus lines and special surplus lines |
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Definition
| only transact for non-admitted /brokers who transact railfoad, aircraft, shiponwners coverag, etc. |
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Definition
| no notice of appointment on file, but all fees and CEunits are up to date |
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Definition
| handles affairs and funds of others |
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Term
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Definition
| Continuing education is: first 4yrs=25 units each year 3rd reenewal cycle, 15units every year or 30 units each renewal cycle. |
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Definition
California Insurance Code &
California Code of Regulations |
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Term
What are the departments in an insurance company?
There are 4 areas |
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Definition
1. Marketing
2. Sales
3. Underwriting
4. Acturial
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Term
| Types of Insurance Companies |
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Definition
1. Reciprocal
2. Mutual
3. Stock
Risk Retention Group
5. Llyods
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Term
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Definition
| Elected by the citzens to administer, interpret, and enforce the code |
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Definition
| California State Guaranty Association |
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Definition
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Definition
| Insured gives up the right to sue the 3rd party and the company does it fo them |
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Term
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Definition
| Mediator that helps sellte siputed claims |
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