General Insurance
Chance of loss
What is Risk
Mathematical principle of probability underlying insurance
What is Law of Large Numbers
Two related insurance company functions and what they do.
What is Underwriting and Actuarial Departments
Underwriting - analyze applications to determine if the applicant qualifies for the coverage being applied for and to assign premium rates based on those risks.
Actuarial - Actuaries analyze mortality, morbidity, and loss data to help estimate future losses and to determine the company's basic premium rates.
Liability insurance that protects producers from liability that may arise due to professional services they rendered in___________________
What is E&O insurance
error & omission
The natural process by which people contend with the perils faced daily, of which there are five common techniques.
What is Risk Management
the type of risk that can be insured?
what is pure risk
What is a hazard
What is avoidance, reduction, retention, sharing, and transfer.
assessing an applicant to determine insurability
what is underwriting
do NOT issue participating policies, and pay stock dividends to stockholders. May sell life and and/or health insurance.
What is SIC
an economical way for an individual or group to transfer the financial risk of loss to an insurance company
What is Insurance
Offer, acceptance, consideration, competent parties, and legal purpose are ____________
What is The five basic elements of a valid contract
A table, compiled by insurance company actuaries, showing the predicted number of deaths at every age from birth to age 100.
What is Mortality table
The willful nondisclosure of material facts on an application for the purpose of obtaining insurance.
What is concealment
Risk management role played by insurance
Unplanned reduction in economic value
what is Loss
two types of required disclosures and define
Buyers Guide - explains general features, benefits, and conditions of the type of insurance being considered.
Policy Summary - provides detailed information about specific policy being purchased.
Owned by policyowners, issue participating policies which pay policy dividends to their policyowners. May sell life and/or health insurance.
What is MIC
An insurer that has a certificate of authority in a given state is said to be an___________ insurer in that state.
What is admitted insurer
blend features of insurance companies and medical care providers. Includes HMOs, PPOs, BC/BS.
What is Medical Care Service Providers
Peril
life insurance issued in face amounts greater than $25,000.
Define MIC, FIC, and SIC
What is Mutual Insurance Company, Fraternal Insurance Company, and Stock Insurance Company.
Name the federal and state government insurance programs
three types of producer authorities and define each
What is Express, Implied and Apparent
Express - defined in contract with insurer
Implied - Understood to be part of job
Apparent - producer allows to exist but not approved by insurer