Terms
A lie
Misrepresentation
Acting as an agent w/o license could be fined up to
$1K
Chance of a loss
Risk
An absolute truth
Misleading an insurance company which results in payment
Fraud
These individuals represent the policyholder in a dispute
Brokers
Failure to complete Con Ed results in fines up to
$50 per credit hour of compliance period
This is a direct result of a direct loss
Indirect or Consequential Loss
Stopping a party from reinstating a previously waived right
Estoppel
To give something of value for the sake of the sale
Rebating
This person or corporation is concerned with supervisory responsibility for an agency
MGA - Managing General Agent
If a license is suspended you can reapply after
1 year
This method of handling risk includes moving financial impact of loss to another party and is the reason we have insurance
Transfer of Risk
Immediate temporary proof of insurance that does not list the premium
Binder
Authorized to write, sign, execute, and deliver policies
PCA - Property and Casualty Agent
25% of their business must be secured with general public
Controlled Business
Revocation of a license has a waiting period of
5 years
To make whole again
Indemnity
The characteristic of a contract were there is unequal value between 2 parties
Aleatory
Name 3 Unfair Claims Settlement Practices
Misrepresenting pol provisions
Not promptly acknowledging claims and comms Not having standards prompt investigation of claim Not maintaining records of complaints reg claims Failure to refund policyholders when pol is cancelled Deductible recovery Delaying claim pymt when proof of loss submitted within 91 days
These individuals can write business in Texas only if countersigned by resident PCA whom can also share commissions but cannot solicit business in TX.
Non-Resident Agent
$1000
$5000
3 Different types of hazards are and definition of each
Physical - characteristic of something tangible
Moral - dishonesty of insured
Morale - carelessness of insured
2 unequal bargaining powers enter into contract on a take it or leave it basis where as anything ambiguous would be in favor of the insured
Contract of Adhesion