When handling premium funds in the conduct of their business insurance producers are acting in a? money designated as premium belongs to the
insurance company
. The producer is handling this money in a position of trust. Fiduciary is the term that refers to the handling of money.
Which of the following is required for a producer to transact business on behalf of the insurer?
Which of the following is required for a producer to transact business on behalf of an insurer? A producer cannot transact insurance on behalf of an insurer
until the producer is appointed by the insurer
.
Which part of the policy clarifies the terms that are used throughout the policy?
The component of a policy that clarifies terms is
the definitions
.
Which of the following must an insurer obtain in order to transact insurance within a given state?
| Question Answer | What of the following must an alien insurer obtain in order to transact insurance within a given state? Certificate of Authority | All of the following statements are true EXCEPT Social Insurance seeks to be equitable. |
|---|
What are the terms used in insurance?
- Premium. Premium is the total or the final amount paid on the Sum Insured. …
- Provider Network. Provider Network is also known as In-Network Provider. …
- Beneficiary. …
- Beneficiary. …
- Zero Depreciation Cover.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment
, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment.
What is an example of rebating?
An example of rebating is
when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale
. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
What are the 4 parts of a policy contract?
There are four basic parts to an insurance contract:
Insuring Agreement. Exclusions. Conditions.
What are the 5 parts of an insurance policy?
Every insurance policy has five parts:
declarations, insuring agreements, definitions, exclusions and conditions
. Many policies contain a sixth part: endorsements. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.
What type of liability would a person who owns a swimming pool have?
The legal term for this duty of care is
premises liability
.
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
. All insurers (domestic, foreign, or alien) must obtain a certificate of authority before transacting insurance within a given state.
What are the marketing arrangements used by insurers?
- The independent agency system.
- The exclusive agency system.
- The direct mail system.
- Bancassurance.
Which if the following would help prevent a universal life policy from lapsing?
Which of the following would help prevent a universal life policy from lapsing? Reasons:
The target premium
is a recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime.
What are the 4 types of insurance?
- Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. …
- Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. …
- Travel Insurance. …
- Health Insurance.
What are special terms in insurance?
‘Special terms'
may be imposed by an insurer in order to reduce the perceived risk
. This is when you are offered insurance but not on the standard terms they would normally offer.
What are three common terms associated with insurance?
- Adjuster. A claims or insurance adjuster is employed by or acts on behalf of an insurance company to examine, evaluate and settle insurance claims. …
- Certificate of Insurance (COI) …
- Claim. …
- Declaration Page. …
- Deductible. …
- Liability Coverage. …
- Peril. …
- Premium.
