Insurance Regulations Flashcards
what is a mutual insurance company?
it pays dividends to its policyholders.
what is a direct writer?
agents are employees of the company who are paid a salary plus commissions.
what is self-insurance?
a company that pays employees’ medical expenses out of a fund specifically created for this purpose (instead of having having group health insurance ).
actual cash value?
original loss less depriciation. it’s the amount of money required to pay for damage to or loss of property.
what is the purpose of the conditions section of an insurance policy?
to list the obligations of the insured and the insurance company
where is the list of perils covered under our policy found in which part of the policy?
insuring agreement
what 6 things does something have to be in order to be insurable?
can ham calculable affordable noncatastrophic homogeneous accidental measurable
what are the types of risks?
arrts: avoid reduce retain transfer share (reinsurance -pooling the risk)
the condition section of an insurance contract sets forth:
the duties of the insured and insurance company
the coverage is covered by an insurance policy are described in the:
insuring agreement
the list of perils covered under a policy is found in which part of the policy?
insuring agreement
the definition of actual cash value is
replacement cost less depreciation
a business loses money because it was forced to close after a fire on the premises this loss is described as what kind of loss?
direct loss
the maximum amount an insurance company will pay in case of a loss is called the
limit of liability
what is WCSHAVVER, when referring to dwelling extended coverage?
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