unit3

Question 1

what are first party losses

Answer 1

covered losses to the property.

ex: insured property can be buildings (called real property) or personal property (stuff)

Question 2

what two things does property insurance protect

Answer 2

1. loss caused by damage from a covered peril

2. insured property

Question 3

1st, 2nd, 3rd party in casualty insurance

Answer 3

1. me-insured
2. my insurer
3. the other guy

Question 4

casualty insurance pays who

Answer 4

the other guy

Question 5

casualty = ?

Answer 5

liability

Question 6

what does casualty policies protect?

Answer 6

businesses when found legally liable for negligent acts or omissions that cause injury or property damage to others

Question 7

casualty insurance pays which party

Answer 7

3rd party losses

Question 8

what is a needs analysis

Answer 8

way to identify exposures and insurance needs to estimate and find funds necessary to pay for those needs

Question 9

what is a hazard

Answer 9

a situation or factor that increases the possibility of a loss

Question 10

in the insurance business, the insurance company is also known as the?

Answer 10

principal

Question 11

what is consideration

Answer 11

exchange of value

Question 12

a reciprocal company is managed by who?

Answer 12

attorney-in-fact

Question 13

risk retention groups have what type of insurance

Answer 13

liability

Question 14

which department within an insurance company is responsible for helping to cover exposure to loss

Answer 14

reinsurance

Question 15

contract with ambiguous language, and insured sue can win on what bases

Answer 15

contract of adhesion. cause solely written by insurance company

Question 16

who is the principal who is the agent

Answer 16

principal-insurer

producer-agent

Question 17

independent and captive agents sell insurance products for whom

Answer 17

several companies

Question 18

independent contractors are also known as what and sell insurance for whom

Answer 18

captive agents and sell for only one company

Question 19

independent agents do what?

Answer 19

represent the insurer (insurance company)

Question 20

brokers or consultants do what?

Answer 20

represent the insured (customer)

Question 21

what is a personal contract

Answer 21

protects the individual who owns the property. cannot be transferred