General Insurance Flashcards
Ownership (insurance companies)
stock & mutual
Domicile (ins companies)
- domestic
- foreign
- alien
Authority (ins companies)
- authorized/ admitted
2. non-authorized/ non-admitted
marketing/ distribution systems
- general agency
- independent agency
- exclusive agency
- managerial system
- direct response marketing
Types of ins
- ownership
- domicile
- authority
- marketing/ distribution system
- rating/ financial status
independent agency
- ONE independent agent represents SEVERAL companies
- non-exclusive
- commissions on sales
- business renewal with any company
exclusive agency
- one agent represents ONE company
- exclusive
- commission on sales
- renewals can only be placed with the appointing insurer
general agency
- general agent-entrepreneur represents ONE company
- exclusive
- compensation and commissions
- appoints subagents
managerial system
- branch manager (supervises agents)
- salaried
- agents can be insurer’s employees or independent contractors
direct response marketing system
- no agents
- company advertises directly to consumers (through mail, internet tv and other mass marketing)
- consumers apply directly to company
3 types of authority
express, implied, apparent
elements of legal contract
- Agreement - offer and acceptance
2.consideration
3.competent parties
legal purpose
characteristics of contracts
adhesion, aleatory, unilateral
adhesion contract
prepared by insurer and accepted by insured on a take it or leave it basis
aleatory contract
unequal value. ex: the premium paid by the insured is small compared to the amount that will be paid out. for example life ins.
unilateral contract
the insured is not legally bound to the contract but the insurer is
estoppel
a legal process in which you cannot re-assert your rights or privileges after you had signed a waiver
