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20 Cards in this Set
- Front
- Back
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Adverse selection |
The insuring of risk that are more prone to loses than the average risk |
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Mutal |
A participating insurance company |
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Reinsurance |
Insurance between insurers |
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Peril |
The cause of a loss |
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Hazard |
Something that increases the chances of a loss or the severity of a loss |
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Sharing |
A method of handling risk by speaking the potential loss among a group with similar exposures |
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Insurance |
The transfer of a pure risk to a company |
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Law of large numbers |
The larger the number of people with similar exposures to loss the more predictable the actual loses will be |
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Adverse selection |
The tensity of those in poor health to purchase health insurance |
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Captive agent |
Producer who only represent one insurance company |
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Fiduciary |
Person in a position of financial trust |
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Consideration |
Something if value that one party gives another |
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Foreign insurer |
Insurance company Incorporated in another state |
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Principal |
Another name for a company that issues a life insurance policy |
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Unilateral |
When only one party in the contract is legally bound to do anything |
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Estoppel |
Waived rights may not be enforced in the future |
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Representations |
Statements believed to be true to the best one knowledge |
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Indemnity |
To restore one to the same financial condition but not too profit from the loss |
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Fraud |
They intentional misrepresented of a material fact used to decieve another party for financial gain |
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Uttmost good faith |
Parties to as contact rely on reach other to be accurate and honest |
