2A-2B

Question 1

What are the two basic types of insurance agents?

Answer 1

Sales agent and the adjuster

Question 2

An agent is is someone who has the authority to act on behalf of someone else. True or False

Answer 2

True

Question 3

Sales agents are contracted to _____ and _____ insurance policies on behalf of the insurer and Adjusters are contracted to ______ _______ that arise against an insurer.

Answer 3

Sell and Service

Settle Claims

Question 4

What the agent says or does on behalf of the insurer can _____ the insurer.

Answer 4

Bind

Question 5

If the agent has taken the utmost care in what they have said and done but made a mistake, the insurer may have to honor that mistake. True or False

Answer 5

True

Question 6

Adhere to or follow the contract.
Use reasonable judgment and care at all times.
Provide all necessary information and documentation to the insurer.
These are all responsibilities of ________.

Answer 6

Agents

Question 7

What are the three types of authority granted in agency relationships?

Answer 7

1. Express Authority
2. Implied Authority
3. Apparent Authority

Question 8

Authority that is directly granted to the agent in writing via the agent’s contract is called what?

Answer 8

Express Authority

Question 9

Define Implied Authority.

Answer 9

The authority that the public reasonably believes the agent to have, based on the agent’s representations.

Question 10

Indirect authority that is granted when the insurer does not correct its agent, even though the agent may be acting in error is what type of authority?

Answer 10

Apparent

Question 11

What are the four types of Sales Agents?

Answer 11

1. Independent Insurance Sales Agent
2. Exclusive Agent
3. General Agent
4. Direct Writer

Question 12

The Independent Sales Agent is self-employed and able to represent and offer insurance products from more than one company at the same time. True or False

Answer 12

True

Question 13

An agent that represents one insurer at a time and provides quotes and policies from only that company.

Answer 13

Exclusive AKA Captive Agent

Question 14

An agent that works for only one company who trains and supervises the Exclusive Agents for that company is called what?

Answer 14

General Agent

Question 15

______ ______ is similar to an Exclusive Agent in that she works for only one company, selling insurance directly to customers, but is a salaried employee.

Answer 15

Direct Writer

Question 16

An individual or business that makes a claim for payment after a loss occurs is know as a _____.

Answer 16

Claimant

Question 17

What are the two main goals of the claim function?

Answer 17

1. comply with eh terms of the contract

2. support the insurer’s financial stability

Question 18

Define adusting.

Answer 18

The process of comparing the losses of a claimant to

the promises made by an insurer in an insurance policy.

Question 19

An ________ ________ is an agent who, for compensation, processes insurance claims.

Answer 19

Insurance Adjuster

Question 20

Adjusters can be _____ employees of an insurer, or they can work on a __-__-_____ basis. And can sometimes be paid commission.

Answer 20

Salaried

Fee-for-Services

Question 21

Adjusters can work for the _______ or the ________.

Answer 21

insured or insurer

Question 22

Name four types of adjusters.

Answer 22

1. Staff
2. Independent
3. Public
4. Emergency

Question 23

Staff adjusters work as salaried employees for only one _______.

Answer 23

Insurer

Question 24

___________ ___________ work as contractors for
insurers and claims-handling companies and my handle claims for multiple companies simultaneously. They are paid by commission, fee schedule, or daily rate plus expenses.

Answer 24

Independent Adjusters

Question 25

Who hires a Public Adjuster?

Answer 25

The Claimant

Question 26

Adjusters who are temporarily licensed to handle claims after natural disasters or other catastrophes are know as ____________ adjusters.

Answer 26

Emaergency

Question 27

An _______ ______________
Acts as the Fiduciary Agent
Has the power to bind
Must report to the principal.

Answer 27

Insurance Adjuster

Question 28

Define Fiduciary Agent.

Answer 28

In order to be a fiduciary agent, an adjuster must: have authority granted by an insurer via a contract, act for, and on behalf of, the principal (the insurer) and protect the principal’s financial and property investments.

Question 29

When the Principal is bound by the adjuster’s decisions and actions this is referred to as the _____ __ _____.

Answer 29

The Power to Bind.

Question 30

A __-______ agreement states that the adjuster may investigate the loss, but that any decisions on the
claim must come from the insurer directly.

Answer 30

Non-Waiver

Question 31

“Reporting to the Principal” simply means that the adjuster must give the principal frequent and
regular updates of her progress on any given claim. True or False

Answer 31

True

Question 32

An Initial report is also referred to as a _____ ____.

Answer 32

Preliminary Report

Question 33

Interim Reports are ______ reports given at set intervals throughout the life of the open claim.

Answer 33

Status

Question 34

This report will list all the facts, statements, and evidence of the claim, any policy coverages that were applied, the adjusted loss totals, and the final disposition of the claim. This report is know as what?

Answer 34

The Final Report