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43 Cards in this Set

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Commissioner Of Insurance
Is elected by people for a term of four years.

Before taking office the Commissioner must take an oath of office and furnish a $25,000 bond.

In MS the insurance Commissioner also serves as State Fire Marshal.
Stock Insurance Company
Is an incorporated insurer which is in business to make a profit. Stockholders provide the capital for the company's operations and the company is owned by the stockholders.
Mutual Insurance Company
Is an incorporated insurer which does not have a capital stock. A mutual company is owned mutually by it's policyholders. Profits or surplus from the operations may be distributed to the policyholders in the form of policy dividends.
Reciprocal Insurer
Is an unincorporated aggreation of persons operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves. The individuals are known as subscribers and reciprocal insurance is provided through and interexchange of indemnity agreements.
Insurance Exchange
Is an association of individual underwriters grouped into syndicates. Insurance exchanges often provide a market for unusual insurance risk. Lloyd's of London is the best known insurance exchange.
Domestic Insurer
Is one that has been incorporated or formed in Mississippi under the laws of Mississippi.
Foreign Insurer
Is one that has been incorporated or formed under the laws of any other state or government and whose home office is not located in Mississippi.
Insurance Solicitor
Means any person directly connected with principally employed by and authorized by an isurance agent to solicit and negotiate or assist in any manner in the sale and issuance of policies or contracts of insurance solely on behalf of agents.
Inactive Agent
Means an individual who is retired, disabled or has not obtained from the Commissioner a current continuous certificate. An inactive agent may not solicit new business or service existing businesses, but may receive renewal commissions.
Insurance Producer
Means a person required to be licensed under laws of Mississippi to sell, solicit or negotitae insurance.
Prelicensing Education Requirements
No less than 24 classroom hours if an applicant is seeking a license for property and casualty insurance.
Application requirements
Have to be atleast 18 years of age.
Has not committed any act that is a ground for denial, suspension or revocation of the license.
Has completed any required prelicensing course of study for the lines of authority for which the person has applied.
Has paid all applicable license and application fees.
Has successfully passed any required examinations for the lines of authority for which the person applied.
Continuing Education Requirements
Take 12 hours of study in approved courses in his or her primary line of insurance during each 12 month period except the initially license year.
Change of Address and Name
Must inform the Commissioner of any change of address or name change within 30 days.
Temporary License
The Commissioner may issure a temporary insurance producer license for period not to exceed 180 days without requiring an examination if the Commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following case:
Surving spouse, to a member or employee of business entity licensed as an insurance producer.
False Information and Advertising
It is unlawful for any person to place before the public in any form and advertisement, announcement or statement containing an assertion or representation with respect to the insurance business, or with respect to any persons conduct in an insurance business with untrue deceptive or misleading.
Principles of Insurance
Physical Hazard
Is a hazard that arises from the condition, occupancy or use of the property itself. An example of physical hazard is a stakeboard left on porch steps
Morale Hazard
This means that an individual through carelessness or by irresponsible actions, can increase the possibility for a loss. An example of a morale hazard is a person who drives a car carelessly because he knows a loss will be insured if an accident occurs.
Moral Hazard
Means that a person might create a loss situation on purpose just to collect from the insurance company. An example of a moral hazard is a prearranged, faked theft of an older vehicle so the owner could collect the insurance money and buy something new.
Twisting
Is a form of misrepresentation where the agent convinces the client to cancel already- existing insurance and buy another policy from the agent to the detriment of the insured. Twisting is illegal.
Actual Cash Value
Replacement Cost - (minus)Depreciation
Stanard Fire Policy: Perils
Fire: hostile, not friendly.
Lighting: is electricity atmospherically produced by nature.
Removal: is the process of removing property for the purpose of preserving it.
Right and duites after a loss for a Stanard Fire Policy
Notify the company in writing that a loss has occured. Protect the property from further damage. Separate the damaged and undamaged property. Put the property in the best possible order furnish the company with an inventory of both damaged and undamaged properties.
Excluded Perils: Stanard Fire Policy
-Explosion
-Riot
-Actions of war
-order of civil authority
-insured's neglect to preserve property following a loss
-theft
*Two of the excluded perils: explosion and riot can be covered under certain circumstances.
Vacancy
Of a building refers to it's having neither personal property nor person in it.
Unoccupancy
Means the absence of persons. Neither of there is permitted for a period longer than 60 days.
Commercial Auto Insurance
Covered Auto
Symbol 1
Any auto- the insured will use during the policy period, including autos that are owned, leased, hired, rented, or borrowed used to designate liability coverage only
Commercial Auto Insurance
Covered Auto
Symbol 8
Hired autos only designates liability and or physical damage coverage only used for autos the insured has leased, hired, rented or borrowed. Does not include autos rented or borrowed from employees or members of their households.
Commercial Auto Insurance
Covered Auto
Symbol 9
Non owned autos only. Only used for autos used in the insured's business that are not leased, hired, rented or borrowed. Includes autos owned by employees but used in the insureds business or personal affairs. Designates liability coverage only.
Commercial Crime Insurance
Burglary- is taking of property from inside the premises by a person unlawfully entering or leaving the premises. There must be evidence of forcible entry or exit such marks made by tools, explosives, chemicals or electricity.
Safe burglary- is taking of property from within a locked safe or vault by a person unlawfully entering of the safe of vault. it also includes the taking of the entire safe or vault from inside the premises.
Commercial Crime Insurance CONT.
Robbery- Is the unlawful taking of property from the care and custody of another person. The robber must have caused or threatened to cause bodily harm to the person being robbed or must have committed an obviously unlawful act that is witnessed by the person being robbed.
Theft- means the unlawful taking of money, securities or other property. This broad term includes burglary, safe burglary and robbery. Theft you escape notice.
Forgery- is signing the name of another person or organization with the intent to deceive.
Dwelling Insurance
Basic form, broad form, special form:
Coverage A- Dwelling
Coverage B- other structures
Coverage C- Personal property
Coverage D- Fair rental value- 10% of dwelling
Homeowners
Coverage A- Dwelling
Coverage B- other structures
Coverage C- Personal Property
Coverage D- Loss of Use
HO-4: insures personal property against the same perils covered under the HO-2 (there is no coverage A or B in the HO-4)

HO-6: insures personal property against these same perils with one exception. In the HO-6 the accidental discharge or overflow of water or stream peril includes coverage for the costs to tear out and replace any part of the building necessary to repai the system or appliance from which the water or steam escaped. (there is limited coverage A available under the HO-6)
Ocean and Inland Marine
Ocean: Hull insurance, cargo insurance, frieght insurance, protection and indemnity insurance
Miscellaneous Commercial Insurance
Farm property coverage forms cover direct physical loss to a variety of properties. The insured can select any combination of these seperate forms. The farm dwellings, appurtenant structures and household personal property coverage form is similar to section I of the homeowners policy. It contains the following coverages.
Coverage A- Dwelling
Coverage B- other private structures appurtenant to dwellings.
Coverage C- household personal property.
Coverage D- loss of use
Bolier and Machinery Coverage
and the principles of the boiler insurance were applied not only to boilers, but loss exposures arising out of other machines, aprticularly those that generated power.
Express authority
is the authority specifically given to an agent, either orally or in writing, by the principal. Written authority is usually provided allows the agents to countersign issue customary services on all contracts accepted by the insurer from the agent.
Implied authority
Is given by the insurance company to the agent that is not formally expressed or communicated. This implied authority allows the agent to perform all of the usual and nessary tasks to sell and service insurance contracts and to fully exercise the agents express authority.
Apparent authority
Is a doctrine that holds that an agent may have whatever authority a reasonable person would assume he or she has
Binder
does not guarantee that a policy will be issued it only guarantees temporary coverage.
To establish negligence four factors must be involved
- legal duty owed
- breach of legal duty owed
- proximate cause
- damages
Contributory negligence
was used to deny liability on the basis that no matter how negligent the employer was the employee had also been negligent. Therefore the employee should be responsible for the consequences
Comparative negligence
which allow a finding of liability to be made even when both parties have contribuited to the loss with an award based on the extent of each parties negligence.