Exam (elaborations)
Personal Lines exam study prep (OH 11-43) Questions with Accurate Answers 2024
- Course
- Institution
Personal Lines exam study prep (OH 11-43)
[Show more]
Content preview
Personal Lines exam study prep (OH 11-43)
Domicile - answer refers to the jurisdiction (i.e., state or country) where an insurer is
formed or incorporated
Domestic Insurer - answer An insurer organized under the laws of this state, whether or
not it is admitted to do business in this state.
Foreign Insurer - answer An insurer not organized under the laws of this state, but in
one of the other states or jurisdictions within the United States, whether or not it is
admitted to do business in the state or jurisdiction.
Alien Insurer - answerAn insurer organized under the laws of any jurisdiction outside of
the United States, whether or not it is admitted to do business in this state.
Admitted (Authorized) Insurer - answer is authorized by this State's Commissioner of
Insurance to do business in this State. It has received a Certificate of Authority to do
business in this State.
Non-Admitted (Unauthorized) - answerhas either applied for authorization to do
business in this state and was declined or they had not applied.
Underwriting Department - answerResponsible for the selection of risks and rating that
determines actual policy premium
Which insurance company department accepts the insurance risk? -
answerUnderwriting
Insurer (principal) - answerthe company who issues an insurance policy
Producer (agent) - answerA person or agency appointed by an insurance company to
represent it and to present policies on its behalf.
Expressed Authority - answerauthority that is written into the producer's agency
contract. Example, producers binding authority.
Implied Authority - answerAuthority the public assumes the producer has.
Apparent Authority - answerAuthority created when a producer exceeds expressed
authority, and the insurer does nothing to counter it.
, Broker - answera licensed agent who negotiates insurance on behalf of the applicant
Which of the following individuals represents the insurance company when selling an
insurance company? - answerProducer
Which of the following types of authority does the public assume an agent has when
quoting insurance? - answerImplied
Speculative Risk - answerA chance of loss, or gain.
Pure Risk - answera risk that presents the chance of loss but no opportunity for gain
Loss - answerThe reduction, decrease, or disappearance of value of the person or
property insured in a policy, by a peril insured against.
Peril - answerthe cause of a loss
Hazzard - answerincreases the probability of loss from a peril
Physical Hazard - answera physical condition that increases the frequency or severity of
loss (example; flammable material stored near a furnace)
Moral Hazard - answerdishonesty or character defects in an individual that increase the
frequency or severity of loss (burns own house for insurance payout)
Morale Hazard - answerA condition of carelessness or indifference that increases the
frequency or severity of loss. (example; leaving car unlocked)
Transfer - answertransferring the risk from one party to another, such as from one
consumer to an insurance company
Retention - answerassume the responsibility for loss
Law of Large Numbers - answerA principle stating that the larger the number of similar
exposure units considered, the more closely the losses reported will equal the
underlying probability of loss.
Insurable Interest - answermust be calculable
Insurable Interest does not include - answercatastrophic perils: war, nuclear hazard and
illegal operations
Dishonest tendencies that increase the probability of loss are what types of hazard? -
answerMoral
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now