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30 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Ambiguities in a contract are construed in favor of the insured
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Doctrine of Adhesion
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if the contract isn't clear to the insured the insured would win in court - must adhere to the rules :) Doctrine of _______
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Receives no financial support from insurers (other then commissions)
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Independent Agents
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May represent more then one insurer
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May represent more then one insurer
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Independent Agents
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Receives no financial support from insurers (other then commission)
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May represent only one insurer
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Exclusive (or Captive) Agents
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Some insurers hold there agents _________
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Also known as "Producers" in some states
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Agents
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Can be exclusive, captive, or independent
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Buying Insurance is:
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Transfer of risk
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you can either retain, avoid, reduce or ________
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The chance or uncertainty of loss is:
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Risk
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something you retain, avoid, reduce or transfer
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Cause of loss
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Peril
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Leaving matches for a kid to reach is a Hazard, the fire is a _________
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Increases risk
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Hazard
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A fire is a Peril, leaving matches where a child can reach them is a ________
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Exchange of values
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Consideration
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let me take that trade into ________
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Need not be equal
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The consideration between the parties to an insurance contract
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The voluntary giving up of a legal right
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Waiver of Estoppel
(or just Waiver) |
I'm waiving my rights!
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Once a legal right has been given up it can no longer be asserted
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Doctrine of Estoppel
(or just Estoppel) |
"Stopping" the ability to assert a known legal right
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Insurance contracts are based upon the Doctrines of:
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Utmost Good Faith and Reasonable Expectations
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U__ G__ F___ and R___ E____
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What ways can risk be handled with an insurance company?
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Transferred, Avoided, Retained, or Reduced
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T.A.R.R
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Self Insuring is a form of:
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Risk Retention
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One of the R's in TARR
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What must exist at the time of application AND time of loss
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Insurable Interest
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Also must involve the possibility of loss ONLY, and not gain
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Based upon Economic factors
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Insurable Interest
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Also must exist at the time of application AND time of loss
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The premium paid and the answers given on the application
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Applicants Consideration
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The insurers main source of underwriting information
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The Application
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Considered to be "Front Line" Underwriters
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Agents
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Also referred to as "Producers" in some states
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Responsible for the "Final Risk" classification
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Underwriters
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Not the Agents
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Modifications to a policy are not effective until the are:
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Approved by a Company Officer
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needs approval
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An Agents incorrect response to an applicant regarding coverage may result in:
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Errors and Omissions (E&O)
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E&O: May be written with both a "limit per claim" or "limit for all claims" - Don't cover embezzlement, filing of false financial statements, bodily injury or property damage liability
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A person authorized to act on behalf of another person (called The Principal)
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Agent
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An Insurer must pay a claim but may sue the agent when:
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An Agent violates there contractual authority
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Represent the insurance company
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Agents
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Not a Broker
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Represent the insured
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Brokers
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Not an Agent
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Failure to disclose a material fact
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Concealment
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Not fraud
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Intent to deceive
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Fraud
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Not Concealment
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