2A-2B Flashcards
What are the two basic types of insurance agents?
Sales agent and the adjuster
An agent is is someone who has the authority to act on behalf of someone else. True or False
True
Sales agents are contracted to _____ and _____ insurance policies on behalf of the insurer and Adjusters are contracted to ______ _______ that arise against an insurer.
Sell and Service
Settle Claims
What the agent says or does on behalf of the insurer can _____ the insurer.
Bind
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
True
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 ________.
Agents
What are the three types of authority granted in agency relationships?
- Express Authority
- Implied Authority
- Apparent Authority
Authority that is directly granted to the agent in writing via the agent’s contract is called what?
Express Authority
Define Implied Authority.
The authority that the public reasonably believes the agent to have, based on the agent’s representations.
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?
Apparent
What are the four types of Sales Agents?
- Independent Insurance Sales Agent
- Exclusive Agent
- General Agent
- Direct Writer
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
True
An agent that represents one insurer at a time and provides quotes and policies from only that company.
Exclusive AKA Captive Agent
An agent that works for only one company who trains and supervises the Exclusive Agents for that company is called what?
General Agent
______ ______ is similar to an Exclusive Agent in that she works for only one company, selling insurance directly to customers, but is a salaried employee.
Direct Writer
An individual or business that makes a claim for payment after a loss occurs is know as a _____.
Claimant
What are the two main goals of the claim function?
- comply with eh terms of the contract
2. support the insurer’s financial stability
Define adusting.
The process of comparing the losses of a claimant to
the promises made by an insurer in an insurance policy.
An ________ ________ is an agent who, for compensation, processes insurance claims.
Insurance Adjuster
Adjusters can be _____ employees of an insurer, or they can work on a __-__-_____ basis. And can sometimes be paid commission.
Salaried
Fee-for-Services
Adjusters can work for the _______ or the ________.
insured or insurer
Name four types of adjusters.
- Staff
- Independent
- Public
- Emergency
Staff adjusters work as salaried employees for only one _______.
Insurer
___________ ___________ 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.
Independent Adjusters
Who hires a Public Adjuster?
The Claimant
Adjusters who are temporarily licensed to handle claims after natural disasters or other catastrophes are know as ____________ adjusters.
Emaergency
An _______ ______________
Acts as the Fiduciary Agent
Has the power to bind
Must report to the principal.
Insurance Adjuster
Define Fiduciary Agent.
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.
When the Principal is bound by the adjuster’s decisions and actions this is referred to as the _____ __ _____.
The Power to Bind.
A __-______ agreement states that the adjuster may investigate the loss, but that any decisions on the
claim must come from the insurer directly.
Non-Waiver
“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
True
An Initial report is also referred to as a _____ ____.
Preliminary Report
Interim Reports are ______ reports given at set intervals throughout the life of the open claim.
Status
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?
The Final Report
