General Insurance Flashcards
1
Q
Ownership (insurance companies)
A
stock & mutual
2
Q
Domicile (ins companies)
A
- domestic
- foreign
- alien
3
Q
Authority (ins companies)
A
- authorized/ admitted
2. non-authorized/ non-admitted
4
Q
marketing/ distribution systems
A
- general agency
- independent agency
- exclusive agency
- managerial system
- direct response marketing
5
Q
Types of ins
A
- ownership
- domicile
- authority
- marketing/ distribution system
- rating/ financial status
6
Q
independent agency
A
- ONE independent agent represents SEVERAL companies
- non-exclusive
- commissions on sales
- business renewal with any company
7
Q
exclusive agency
A
- one agent represents ONE company
- exclusive
- commission on sales
- renewals can only be placed with the appointing insurer
8
Q
general agency
A
- general agent-entrepreneur represents ONE company
- exclusive
- compensation and commissions
- appoints subagents
9
Q
managerial system
A
- branch manager (supervises agents)
- salaried
- agents can be insurer’s employees or independent contractors
10
Q
direct response marketing system
A
- no agents
- company advertises directly to consumers (through mail, internet tv and other mass marketing)
- consumers apply directly to company
11
Q
3 types of authority
A
express, implied, apparent
12
Q
elements of legal contract
A
- Agreement - offer and acceptance
2.consideration
3.competent parties
legal purpose
13
Q
characteristics of contracts
A
adhesion, aleatory, unilateral
14
Q
adhesion contract
A
prepared by insurer and accepted by insured on a take it or leave it basis
15
Q
aleatory contract
A
unequal value. ex: the premium paid by the insured is small compared to the amount that will be paid out. for example life ins.
