Field Underwriting Procedures

Question 1

A legal representative of an insurance company

Answer 1

Agent/Producer

Question 2

What is the difference between agent and producer?

Answer 2

Producer includes agents AND brokers; agents work specifically for the insurer

Question 3

A person applying for insurance

Answer 3

Applicant/Proposed insured

Question 4

Permission to do something

Answer 4

Consent

Question 5

the policyowner facing the possibility of losing something of value in the event of loss

Answer 5

Insurable interest

Question 6

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

Answer 6

Insurance policy

Question 7

person covered by the insurance policy’ may or may not be the policyowner

Answer 7

Insured

Question 8

The company who issues an insurance policy

Answer 8

Insurer/Principle

Question 9

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

Answer 9

Policyowner

Question 10

The money paid to the insurance company for the insurance policy

Answer 10

Premium

Question 11

Agreement (offer and acceptance; Consideration; Competent parties; and legal purpose

Answer 11

Elements of a contract

Question 12

When an insurer’s underwriter approves the application and issues a policy

Answer 12

Acceptance

Question 13

Absolutely true statement upon which the validity of the insurance policy depends; breach can be considered grounds for voiding the policy or a return of premium

Answer 13

Warranty

Question 14

Contracts that are offered on a take-it-or-leave-it basis; any ambiguities in the contract settled in favor of insured.

Answer 14

Contract of adhesion

Question 15

An exchange of unequal amounts of values

Answer 15

Aleatory

Question 16

The individual whose duty is to evaluate risk and decide whether or not a person is eligible for coverage

Answer 16

Underwriter