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Terms in this set (44)
the amount paid on claims for covered losses and various expenses related to handling claims
under writers in the insurance department/company are responsible for accepting and rejection applicants
pay dividends to their policy holders
State Insurance Department
responsible for controlling the insurance matters with in the state
a person who stands in a special relationship to trust another person
agents may not misrepresent or falsely advertise the terms or benefits of a policy
a form of misrepresentation in which the agent convinces the client to cancel an already existing policy and buy another one. twisting is illegal
giving or offering some benefit other than those stated in the policy, exp cash, gifts
cannot give lower or higher rate; Agent cannot accept bribes from clients to provide lower premiums
employees of a company who are paid a salary plus commission
Insurance department responsible for accepting and rejecting applications on company standards
in some states the insurance company must obtain official before using new form and rates
File + Use
a company can use forms and rates as soon as they have been filed
states allows the companies to openly with the forms and rates they select, subject only to requirements of adequacy and nondescrimination
unincorporated entity established by group members who are managed by an attorney-in-fact. they pay a premiums to a pool.
fraternal benefit societies
type of organization organized as a non-profit association
type of insurer that spreads risks among members who are responsible for their pro-rate share of a potential loss
where an unequal exchange of value exists between the owner of the policy and the insurance company.
restoring a person to their original value after suffering a loss
type of insurance company that is owned by shareholders. Pay stock dividends.
used to compare the company's operations from year to year
the premium the company actually earned by providing insurance protection for a designated period
under writing expenses
the costs required to acquire and maintain a book of business. incudes, advertising, commissions, salaries and other administrative cost and regulatory costs such as taxes and licensing fees
the gross amount of premium income on a company's books. it includes both earned and unearned premium. premiums are mew business, renewals and policy endorsements.
"numbers department" actuaries determine the rates to be charged for various types of insurance
determination of financial condition of the insurance company. Collecting premiums, paying out commissions and proper maintain of the reserve
oversees the funds of the companies needs to invest to make sure adequate funds will be on hand to pay claims
because insurance policies are legal contracts, insurance companies should maintain a legal department
Loss control department
"engineering department" makes recommendations to insured as to how risks may be avoided
works closely with the company agents. Monitors the sales and marketing efforts of the agents
helps determine the company's overall marketing strategy. Develops advertising and sales aids
purchase insurance to cover their own exposure to loss. Helps protect insurance companies from catastrophic losses from wild fluctuation in underwriting results
contributions help other departments run smoothly
Oral or written statements made by the agent that the insured has immediate protection that is valid for a specific time.
called "consumer reports"
Fair credit reporting act
protects consumers by requiring that the consumer be notified in certain situations and by the establishment provisions for the removal of outdated and incorrect information
tendency for people with a greater than average exposure to loss to purchase insurance.
Prohibits the denial of an omitted fact if accepted by a prior action
the period of time, 30 or 31 days, which the policy owner has to remit unpaid premiums before coverage lapses
the period of time, usually 2 years, that an insurer has to challenge any material misstatements made on the application
insurance service office (ISO)
a provider of rate making data for property and casualty insurers based in Washington D.C.
an element of a legal contract that requires that the purpose of the contract be legal
mandatory Policy Provisions
Policy provisions required in an insurance contract for the protection of the policy owner
THIS SET IS OFTEN IN FOLDERS WITH...
Property and Casualty License Exam
Glossary of Insurance Terms
Texas Department of Insurance
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