1C

Question 1

Insurance Producer

Answer 1

needs to be appointed by insurer to sell, solicit or negotiate insurance

Question 2

Insurance Consultant

Answer 2

needs an insurance consultants license. gives advise, counsel, opinion or service. can’t receive commissions, gets a fee.

Question 3

Insurance Consultant needs:

Answer 3

5 years experience, E&O insurance (min $500,000)

Question 4

Insurance Adjuster

Answer 4

licensed to adjust losses for or against an authorized insurer

Question 5

Law of Agency

Answer 5

agency relationship exists when one person represents another with regard to agreements between a 3rd party and principal

Question 6

3 Types of Producer Authority

Answer 6

1. express
2. implied
3. apparent

Question 7

Express Authority

Answer 7

authority principal intends producer to have & is provided for in agency agreement

Question 8

Implied Authority

Answer 8

not expressly granted by contract/agreement - assumed authority the producer has (ie bc of collection of premium on it’s behalf)

Question 9

Apparent Authority

Answer 9

gives the appearance of authority to act (ie. gives a binder of temp coverage)

Question 10

Fiduciary

Answer 10

person w a special position of trust/confidence (ie handling money: ex, trustees, guardians)

Question 11

Producer’s Responsibilities

Answer 11

1. be knowledgeable of the process
2. be knowledgeable of the products
3. maintain current understanding of laws

Question 12

Surplus Lines

Answer 12

aka excess lines. unique and hard to place risks (ie. aviation liability, auto racing liability, etc.)