Introduction to Insurance
The transfer of risk
What is Insurance?
One party is legally bound to contractual obligations
What is Unilateral Contact?
Today's cost minus depreciation
What is Actual Cash Value
List the elements of Negligence
What is D.B.D.P? Duty, Breach of Duty, Proximate Cause, and Damage/Loss
Appointed for two years by the governor. Enforces the laws, rules and regulations.
What is the Commissioner?
The three types of Hazards
What is Moral, Morale and Physical Hazard?
Compensation for a loss. Restoring the insured to the same condition they were prior to the loss. (Make them whole again)
What is Indemnity?
A person that takes a person or organization's property into their care, custody, or control for servicing, repair, or storage
What is a Bailee?
List the Defenses Against Negligence
What is Contributory Negligence, Assumption of Risk, Intervening Cause, and Statute of Limitations?
Non-profit, unincorporated legal entity made of all P&C insurers authorized to transact business in TEXAS
What is Texas Property and Causality Guaranty Association?
They own and benefit from a Mutual insurance company.
What is the Policyholder?
Includes Persons name, Premium, Policy Number, Policy Term, Policy Limit
Insurance for multiple items of property for a single amount of insurance that applies to all covered property
What is Blanket Limit?
Payments by the insurer for the costs associated with investigating and resolving, such as premiums on bonds, pre and post- judgement interest. These payments are paid in addition to policy limits.
What is Supplementary Payments?
Works with high risk unusual customers (not admitted). Has to have taken PCA or MGA exam
The most important part of underwriting?
What is the Application?
A temporary legal agreement issued by an insuance company to provide short term insurance up to 60 days.
What is a Binder?
A condition included in a property policy to encourage the customer to insure their property to the correct value. Should not be have coverage less than 80%
What is Coinsurance?
Associated with ownership of a dangerous animal, storage of firearms or weapons, and possession of explosive or highly flammable material.
What is Absolute Liability?
For penalties of complaints. TDI can suspend license for ___ years and revoke for ___ years
What is suspend for 1 year and revoke for 5 years?
Protects the confidentiality of the consumer's information and protects that information from security threats
What is Gramm-Leach-Bliley Act of 1999?
The insured cancels the policy. Insurer retains a portion of the unearned premium for administrative cost.
What is short-rate cancellation?
The amount property can be sold at the end of its useful life
What is Salvage Value?
Damages awarded in addition to the compensatory damages to punish and discourage a wrongdoer from repeating negligent acts or omissions.
What is Punitive Damages?
Requirements for continuing education are...
What is 24 hours completion every 2 years. 3 hours of ethics. 12 hours must be classroom credited?