Chapter 1 (producers & general rules)

Question 2

A producer is an individual licensed to sell, solicit, or negotiate insurance contracts on behalf of the __________

Answer 2

principal (insurer)

Question 3

The ________ defines the relationship between the principal and the producer: the acts of the agent within the scope of authority are deemed to be the acts of the insurer.

Answer 3

law of agency

Question 4

Insurance agents represent the _________ (principal).

Answer 4

insurer

Question 6

There are 3 types of agent authority: _________

Answer 6

express, implied, and apparent.

Question 7

_________ authority is the authority a principal intends to grant to an agent by means of the agent’s contract.

Answer 7

Express

Question 8

____________ authority is authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.

Answer 8

Implied

Question 9

___________ authority (also known as perceived authority) is the appearance, or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.

Answer 9

Apparent

Question 10

Because an agent handles the funds of the insured and the insurer, the agent has a __________responsibility. A _________ is someone in a position of trust.

Answer 10

fiduciary