Definitions
Someone protected, or covered, by an insurance policy.
What is an Insured?
At least 18 years old, mentally sane , and Sober at the time of entering the contract are examples of this.
What are Competent Parties?
The method of handling risk in which the chance of loss is moved to another entity.
What is Risk Transfer?
This company has been authorized to sell insurance within the state of New Mexico
What is an Admitted Insurer?
Being entirely open, honest, and transparent with each other.
What is Good faith?
Chance of loss.
What is Risk?
exchange of value
What is Consideration?
Deductibles and co-payments are examples of this.
What is Risk Retention?
It transfers risk from one insurer to another insurer. Insurance for insurers.
What is Reinsurance?
to restore the insured to the financial state he or she enjoyed prior to the loss-no more no less
What is Indemity?
Situations in which there can be either gain or lose; situations in which there is only a chance of loss.
What is the difference between Speculative and Pure Risk?
an illegal drug deal would be the opposite of this.
What is Legal Purpose?
What is Risk Reduction?
These are the three Domiciles.
What is Domestic, Foreign, and Alien?
The three types of producer authority.
What are Express, Implied, and apparent?
Unit of measurement that measures the amount of risk.
These are Elements of a Contract.
What are Consideration, Legal purpose, Offer, Acceptance and Competent parties?
Not flying in an airplane or buying a car are examples of this.
What is Risk Avoidance?
What is a Certificate of Authority?
an intentional act designed to deceive and induce another party to part with something of value.
What is Fraud?
Physical, Morale, Moral
What are the Three types of hazards?
Contract that the value received from the contract by each party is unequal
What is Aleatory?
Insurers are willing and able to provide insurance coverage under these 5 Elements of risk.
What are Calculable, Affordable, Non catastrophic, Homogeneous, Accidental and Measurable
The three types of Ownership of a company.
What are Stock, Mutual, and Fraternal Benefit Societies?
The Producer represents the Insurer, The insurer is responsible for the actions of the producer
What is Law of Agency?