General Insurance Flashcards
What insurance doctrine states that a policy should cover what a prudent person would expect
Reasonable expectations
Insurance risks must involve
The possibility of loss only
Insurance is a means of what
Transferring risk
In property and casualty and in medical expense insurance the principle of making someone whole again after a loss by paying only for actual losses is
Indemnity
What is concealment
The failure to disclose any material fact
In which company may policyholders receive policy dividends when there is a profit
Mutual
An independent producer
Represents more than one insurance company
A person who exercises general supervision over the business of an insurance company
MGA (Managing General Agent)
An insurer Incorporated under the laws of state in which it is operating is considered to be a
Domestic insurer
Failure to disclose known facts when filling out an insurance application is an act of
Concealment
What characteristics might make a risk uninsurable
Risk of loss exists because of a catastrophic exposure
The law of large numbers state that
The predictions become more accurate as the number of units being considered increases
Under contract law the actions by a party may intentionally and voluntarily give up a known right is known as a
Waiver
The uncertainty about loss that exists whenever more than one outcome is possible is called
Risk
In which company may stockholders share in the profits and losses of the insurer
Stock
