1.1 - The World of Insurance

Question 1

What are Insurance Companies?

Answer 1

AKA - Insurers or Carriers: manufacture and sell insurance coverage in the form of insurance policies or contracts of insurance

Question 2

What are Insurance Agencies?

Answer 2

Captive or independent organizations that recruit, contract with, train, and support insurance producers

Question 3

What are Insurance Producers?

Answer 3

Licensed individuals representing and appointed by an insurance company when transacting insurance business

Question 4

What is an Insured?

Answer 4

The person or entity that is covered by the Insurer, which covers losses due to loss of life, health, property, or liability

Question 5

What is an Owner?

Answer 5

the person responsible for paying the policy’s premium; this person is not necessarily the insured under the policy, but has various rights that are specified in the contract