Definitions - General Insurance (Chapter 1)

Question 1

Agent/Producer

Answer 1

a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer

Question 2

Applicant or proposed insured

Answer 2

a person applying for insurance

Question 3

Broker

Answer 3

an insurance producer not appointed by an insurer and is deemed to represent the client

Question 4

Insurance policy

Answer 4

a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events

Question 5

Insured

Answer 5

the person covered by the insurance policy. This person may or may not be the policyowner

Question 6

Insurer (principal)

Answer 6

the company who issues an insurance policy

Question 7

Policyowner

Answer 7

the person entitled to exercise the rights and privileges in the policy

Question 8

Premium

Answer 8

the money paid to the insurance company for the insurance policy

Question 9

Reciprocity/Reciprocal

Answer 9

a mutual interchange of rights and privileges