An insurance term for a situation where the possibility of either a financial loss or a financial gain exists, such as in purchasing shares, or betting on horses.
What is Risk?
The hazard threatening a risk because of external or internal physical conditions.
What is Exposure?
These are the two application types
What are Oral and Written?
This is one of two documents that show evidence of insurance being bound and is a memorandum of an agreement to insure that is issued to record the transaction pending the policy being written (aka interim receipt)
What is a Binder Letter?
(1) In law, a limitation of time within which legal action can be taken by a claimant. (2) In insurance, the period of time in which a claim may be brought by the policyholder.
What is Prescription?
The insurance company that undertakes to indemnify for losses and perform other insurance-related operations.
What is the Insurer?
Policies composed of unique wordings drafted to accommodate the needs of a particular risk.
What are Manuscript Policies?
These are the 3 ways an application (paper or online) can be processed
What are:
-Rating Tools
-Insurers Systems
-Sent to Insurer
This is one of two documents show evidence of insurance being bound and tells the insured that the coverage described within it has been set up
What is Cover Note?
This will be a powerful asset as they show record of what choices the client has made in regard to their insurance
What is Documentation (notes, conversations, emails etc.)?
A system of marketing insurance through independent contractors (agents) who sell insurance on a commission or fee basis with one or more insurers.
What is Independent Agency System?
A federal statute that governs the collection and use of personal information. It states that personal information to be collected must be relevant, and that all information that has been collected, is being collected, or will be collected must be held in the strictest of confidence.
What is Personal Information Protection and Electronic Documents Act (PIPEDA)?
This application question provides a record or frequency and type of loss which helps underwriters determine level of risk
What is Loss History?
These are 3 common reasons why insurance documents could be delayed
What are:
A bar created when someone by their action, or lack of it, indicates that they will not exercise a right they have. They stop themself from exercising their right later. For example, if A owns a pen and stands by and watches B sell the pen to C, as if the pen belonged to B, then A cannot later reclaim the pen, arguing that it was his.
What is Estoppel?
A system of marketing insurance through licensed agents who represent only one company or a group of companies under similar management.
What is Exclusive Agency System?
is a source of preferred clients within the agent/brokers trading area. It is divided into smaller groups through market segmentation (age, background, personal interests, coverage needs etc.)
What is Target Market?
This is fundamental to the principle of utmost good faith, and requires revealing all relevant facts in all insurance transactions
What is Duty of Disclosure?
A dollar amount deducted from the amount of loss that is reduced as the loss increases and then disappears entirely to provide full coverage when the loss reaches a certain specified figure and are principally associated with Fire Policies
What is Disappearing Deductible?
When clients have complaints, these are all things agents/brokers must do
What is:
An independent business operation given authority by a number of insurance companies to solicit business on behalf of such companies. Responsibilities include recruiting, training, and supervising agents.
What is Managing General Agent (or MGA)?
This method of qualifying a client can reveal trends in the clients claims and potential areas of risk (ex-multiple theft reports etc.)
What is Loss History?
This application question provides an opportunity for intermediaries to present any addition information about the client (ex if the account is new, if the intermediary knows the applicant etc.
What is Agents and Brokers report?
These are the Parts of a Policy
What are:
These are all involved in the process of renewing a policy
What are: