CISR Agency Operations and Answers(RATED A)

CISR Agency Operations and Answers(RATED A) Four benefits of ethical behavior - ANSWER a. To be recognized as knowledgeable insurance professionals within the community b. To gain public trust and confidence c. To avoid government regulation d. To enhance credibility with customers and companies Misrating & Misclassification - ANSWER Risk misrated to write coverage - Insurer doesn't receive enough premium; Insurer not able to pay losses Common ethical issues - ANSWER Rating a vehicle using wrong class; incorrect protection class; relying on RC endt; hiding other residents of household; hiding young drivers; underestimating rating for reduced premium; signing for insured Peer standards - ANSWER Require duties to be performed in a manner similar to other in same position Oral and written agreements - ANSWER Law recognizes the duties of the parties to perform and provides a remedy for non-performance Statutes - ANSWER Every state has statutes: rebating Actual or Expressed Authority - ANSWER Given by the insurance company (Binding authority, Underwriting approval) Implied Authority - ANSWER Insurance company is stopped from denying the authority when it's allowed same activity in the past (allowing bad loss ratio for last 10 years) Apparent Authority - ANSWER Believed authority. Protects insured from unauthorized acts of agent. (Ins. Co. pay claim, subrogates against agent) Standard of Care Owed to Insurers: Loyalty - ANSWER Remaining faithful to company/agency relationship Standard of Care Owed to Insurers: Good Faith - ANSWER Honesty throughout transaction; Acting in best interest of insurance co Standard of Care Owed to Insurers: Reasonable Care - ANSWER Submit only business that meets or exceeds UW requirements Standard of Care Owed to Insurers: Contractual Duties - ANSWER Identified in agency agreement; Staying w/in binding authority; following required time frame Standard of Care Owed to Customers: Adequate Coverage - ANSWER Determine a