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Definition
| the chance of uncertainty or loss |
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| may shift liability of a situation and relives the other party of responsibility |
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| the more examples used to develop any statistic, the more reliable the statistic will be |
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| risks in which there exists both the possibility of gain and the possibility of loss |
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| insurance can be used only to insure pure risks |
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| a company will not want to only insure people in one town, they will want to spread their risk between many towns |
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Definition
the cause of the loss
ex: fire and collision |
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| anything that increase the chance of loss |
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Definition
| a legal agreement between tow competent parties. |
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| in order for an insurance contract to be valid it must contain: |
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Definition
1. competent parties
2. legal purpose
3. offer and acceptance agreement
4. consideration |
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Term
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Definition
| when a loss occurs, and individual should be restored to the approximate financial condition he was in before the loss. no more and no less. |
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Term
| an insurance contract does not insure property it insures? |
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Definition
| the peson who owns the property |
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Term
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Definition
it is contingent on an uncertain event ( a loss) that provides for unequal transfer of value between the parties.
example:
an insured can pay premiums for many years without having a covered loss. On the other hand. insureds who suffer a loss often get a great deal more from the insurance company than they've paid in premiums. |
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Term
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Definition
one party has greater power over the other party in drafting the contract.
The provisions of the policy are made by the insurer. The insured does not take part in the preparation of the contract. |
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Term
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Definition
| occurs when the insurer doesnt make the terms and agreements of the policy perfectly clear |
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Term
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Definition
| one sided. An insurance policy is one sided because only the insurance company is legally bound to perform its part of the agreement. |
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Term
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Definition
the insurance company relies on the truthfulness and integrity of the applicant when issuing a policy.
In return, the insured relies on the company's promise and ability to provide coverage and pay claims. |
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Term
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Definition
always on the first page,
contain:
name of the insured
address
the amount of coverage provided
a description of the property
cost of the policy |
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Term
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Definition
always on the first page,
contain:
name of the insured
address
the amount of coverage provided
a description of the property
cost of the policy |
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Term
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Definition
-the heart of the policy
- states in general what is to be covered
- type of property covered
- perils |
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Term
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Definition
| the ground rules for the policy. They describe the responsibilities and the obligations of both the insurance company and the insured |
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Definition
| describe the losses for which the insured is not covered. |
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Definition
| an insurance company owned by its stockholders. |
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Term
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Definition
| insurance company owned by its policyholders |
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Term
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Definition
| provide primarily fire and windstorm damage |
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Term
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Definition
| an unincorportaed group of members that share insurance responsibilities with other members; managed by attorney at fact |
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Term
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Definition
| a voluntary association of individuals who agree to share in insurance contracts; each individual or syndicate is individually responsible for the amounts of insurance they write. |
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Term
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Definition
| offer insurance that is available only to their members. |
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Term
| private government insurers- residual market insurance |
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Definition
the government sometimes steps in to provide insurance that is not ordinarily available from private insurers such as:
war insurance
nuclear energy liability
flood insurance
federal crop insurance |
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Term
| state level programs provide: |
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Definition
| workers comp and unemployment insurance |
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Term
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Definition
| an insurance company that writes only one line of insurance |
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Term
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Definition
| an insurance company that writes more than one line of insurance. |
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Term
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Definition
| the risk that we will suffer financial loss as a result of our actions towards others. |
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Term
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Definition
| represent the insurance company |
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Term
| responsibilities of an insurance agent |
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Definition
selling insurance
issuing and countersigning policies
collecting premiums
providing link between the insured and the insurance company |
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Term
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Definition
| the agent signs each new policy prepared by the company before delivering to the insured. |
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Term
| the agent is responsible for field underwriting each risk |
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Definition
| using the pre established criteria to seek out the type of business that is likely to be acceptable to the company. |
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Term
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Definition
| insurance should be purchased by agents to protect themselves against legal liability arising from inadvertent errors or emissions. |
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Term
| how often is continuing education required in texas |
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Definition
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Definition
| authorized to act on the company's behalf. |
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Term
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Definition
| the authority specifically given to an agent either in writing or verbally. |
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Term
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Definition
| the authority given by the insurance company to the agent that is not formally expressed. |
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Term
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Definition
| a doctrine that holds that an agent may have whatever authority a reasonable person would assume the agent has. |
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Term
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Definition
| an agent licensed by the state to hand;e the placement of such coverages with non admitted companies |
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Term
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Definition
| used to compare the company's operations form year to year. |
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Term
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Definition
| the costs required to acquire and maintain a book of business. |
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Term
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Definition
| the process of selecting certain types of risks and rejecting others so the insurance company will have a book of business that will produce the company's desired results. |
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Term
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Definition
| the numbers department. using all of the data generated by computer to determine the rates to be charged for various types of insurance. |
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Term
| National Association of Insurance Commissioners |
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Definition
| the commissioners of each of the states together make up the NAIC |
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Definition
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Definition
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Definition
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| insurance guaranty association |
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Definition
| provide funds for payment of unpaid claims when an insurer becomes insolvent |
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Term
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Definition
| basic charges an insurance company sets for various types of insurance |
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Term
| federal regulation jail time for material misrepresentation |
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Definition
| up to ten year with fine or separate |
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Term
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Definition
| gives the federal government broad power to curtail attempts to launder money and finance terrorist activites. |
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Term
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Definition
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Term
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Definition
| oral or written statement that provides immediate insurance protection for a specified period |
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Term
| Fair Credit Reporting Act |
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Definition
| protects consumers by requiring that the consumer be notified in certain situation and by establishing provisions for the removal of outdated and incorrect information. |
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Term
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Definition
| the tendency for people with a greater than average exposure to loss. |
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Term
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Definition
| after a policy has been issued the insured needs the certificate of insurance |
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Term
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Definition
| always intentional and involves an all out effort by one party to deceive and cheat the other |
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Term
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Definition
| if an agent states or indicated by his actions that a particular loss is covered, the insurance company will be estopped from denying the coverage. |
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Term
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Definition
| when the insured cancels before the expiration date, the company not only keeps the premium they also keep allowance for expenses such as issuing the policy. |
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Term
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Definition
| the company retains only the earned premium and is not permitted to keep and extra amount for expenses. |
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