chpt 1 Flashcards
what’s a insurer
insurance company
Who’s the principal?
the insurance company
who do agents represent?
insurance company/ the insurer
What’s the 4 elements that makes an insurance contract binded?
Agreement, Consideration, Competent parties, legal purpose.
Unilateral meaning
One sided. one party has legal obligation.
Conditions that increase chance of loss are called
hazards
What type of authority is based off agents word?
Apparent
in insurance contracts when does acceptance usually occur
when the insurer approves
who represents the principal?
agent or producer
in insurance, contracts are aleatory in nature. What’s that mean?
Unequal values are exchanged between the parties to a contract.
Wagering on a sporting event is known as what risk?
Speculative
A tornado that destroys a property would be an example of?
Peril
what’s consideration on the part of the insurer
a promise to pay in the event of a loss
what’s the 5 methods to managing risks?
(STARR)
Avoidance, retention, reduction, transfer shared
What risk is insurable?
Pure
