General insurance Flashcards
Insurance is defined as..?
The transfer of pure risk to the insurance company in consideration for a premium.
The chance of loss without the chance of gain is called…?
Pure risk
Is speculative risk insurable?
No
A condition that could result in a loss is known as
Exposure
Peril is defined as
Cause of the loss.
To be insurable, losses must be
Calculable.
What protects insurers from catastrophic loss?
Reinsurance
Are insurance laws required to be uniform?
No
Stock insurers may pay dividends to its shareholder but are they guaranteed?
No
Who manages a reciprocal insurance company?
An attorney in fact
A stock insurer are not guaranteed to pay dividends? True or false
True.
What is a reciprocal insurer?
a group of unincorporated individuals who insure each other.
Producers can be liable when violating?
The producer contract.
Do producers represent the company or the insured?
Producers represent the insurance company.
What types of authority do producers have?
explicit, implied, apparent
