Lesson One Flashcards
Agent
Represents the Insurance Company
Broker
Represents the Consumer
Life only agent
represents the insurer
Health only agent
Represents the insurer
Direct System
Also known as Direct Writer. Advertises directly through Radio, TV, and internet
Life and Health Agent
Represents the insurer
Insured
Client (1st party)- YOU : Party who accepts the contract and receives the coverage
Contract
The Insurance Policy
Insurance Agent (PC License)
Represents the insurer
Insurer
Insurance Company (2nd party)- Party Who makes the contract and provides the coverage
Claimant
A claimant is the person making a claim for payment from an insurance company.
CIC
Certified Insurance Counselors. Insurance law (written by the state legislature)
CCR
Covenants, Conditions, Restrictions Insurance Rules (written by the commissioner, who can change/withdraw regulations).
Commissioner:
Elected by the people to serve a four year term.
-If commissioner leaves office during the 4 year term, governor will appoint someone to finish the term.
McCarran Ferguson Act
Gave the states the right to regulate the majority of the insurance industry at the state level (CDI)
*State Rights
Domicile
Address
Domestic
Insurer is one incorporated under the laws of California
Foreign
Insurer is one incorporated under the laws of any state, other than CA (Arizona)
Alien
Insurer is one incorporated under the laws of any country outside the United States (Canada)
Express Authority
An authority that’s written in the contract -SPECIFIC
Implied Authority
An authority you have that’s NOT specifically written in the contract but is reasonable for the public to assume you have
Apparent Authority
Authority of an agent that is created when the agent oversteps actual authority, and when inaction by the insurer does nothing to counter the public impression that such authority exists.
Stock company
Stock holders
Non-participating policies
Dividends to a stockholder are taxable
Dividends are not guaranteed
Mutual company
Participating policies
Policyholder
Dividends not taxable
Dividends are not guaranteed
Reciprocal insurers
Owned by The company’s policy holders
I’m a reciprocal insurer, each policyholder insures the risk of the other policyholders.
Reciprocal Insurers are managed by an ATTORNEY IN FACt.
