General Insurance Health Agents and Rules of Agency

Question 1

An___________ is an individual licensed to sell, solicit or negotiate insurance contracts on behalf of the principal (insurer)

Answer 1

agent/producer

Question 2

The _________ defines the relationship between the principal and the agent/producer: the acts of the agent/producer within the scope of authority are deemed to be the acts of the insurer

Answer 2

law of agency

Question 3

An agent represents the________, not the insured

Answer 3

insurer

Question 4

Any knowledge of the_________ is presumed to be knowledge of the insurer

Answer 4

agent

Question 5

If the agent is working within the conditions of his/her contract, the insurer is fully __________

Answer 5

responsible

Question 6

When the insured submits payment to the agent, it is the same as submitting a payment to the________

Answer 6

insurer

Question 7

The __________ is responsible for accurately completing applications for insurance, submitting the application to the insurer for underwriting, and delivering the policy to the policyowner

Answer 7

agent

Question 8

Contractually, only those actions for which the_____________ can bind the principal (insurer).

Answer 8

agent is authorized

Question 9

_______________ authority is the authority a principal intends to grant to an agent bymeans of the agent’s contract.

Answer 9

Express

Question 10

_______________ authority is authority that is
not expressed or written into the contract, but which the agent is assumed to have in order to transact the business
of insurance for the principal

Answer 10

Implied

Question 11

________________ is incidental to and derives from express authority since not every single detail of an agent’s authority can be spelled out in the written contract

Answer 11

Implied authority

Question 12

__________________ is the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.

Answer 12

Apparent authority (also known as perceived authority)

Question 13

Producers must adhere to certain established procedures, and failure to comply will result in penalties. Some of the market conduct regulations include, but are not limited to, the following

Answer 13

Conflict of interest
A request of a gift or loan as a condition to complete business;
Supplying confi dential information