Captive agent Study guides, Class notes & Summaries

1 ADJUSTER LICENSING (FL)/ EXAM REVIEW QUESTIONS AND ANSWERS, VERIFIED What is a reserve, in insurance terms? - -A pool of collected premiums that the insurer sets aside to pay claims Ricky was watching a baseball game at XYZ Stadium, when the railing on which he was leaning gave way and he fell two stories. As a result of his fall, Ricky broke his back and is now paralyzed from the waist down. Ricky sued the owners of XYZ Stadium and was awarded $150,000 to cover his medical bills and...

Insurance - transfer of risk Speculative risk - has a possibility of both loss and gain Pure risk - only has a possibility of loss (no gain) Exposure - risks for which an insurance company would be liable expressed in units Peril - cause of a loss Hazard - an increase in the chance of loss Moral hazard - arise from people's character (faking a loss) Morale hazard - state of mind or careless attitude (accidentally leaving door unlocked) Methods of handling risk - STARR...

Mr. Carlini has heard that Medicare prescription drug plans are only offered through private companies under a program known as Medicare Advantage (MA), not by the government. He likes Original Medicare and does not want to sign up for an MA product, but he also wants prescription drug coverage. What should you tell him? - Mr. Carlini can stay with Original Medicare and also enroll in a Medicare prescription drug plan through a private company that has contracted with the government to provi...

Account Current Satment - ANSWER Definition A report submitted to the insurance company by the insurance agency which gives an accounting of the policies billed and shows the gross premium, commission, and net premium due Selling new coverage to an existing customer - ANSWER Selling new coverage to an existing customer Admitted Company - ANSWER An insurance company operating within the standard market; licensed by the state with forms and rates regulated; financial condition is monitored ...

A Domestic insurance company - is a foreign insurer to other states - is a domestic insurer w/i the U.S. - is a foreign insurer only to other countries -must be incorporated in at least 2 statesA domestic insurance co. is incorporated in the state within which it is located. It is a domestic insurer within its specific state - ie it is a foreign insurer to other states. A captive insurance co. exists primarily to underwrite the risks of the - parent owner - shareholders - partnersA capti...

1. What are the 3 CATEGORIES of AGENT, and what are the distinctions between those categories : 1. company employed agent, - works directly for insurer as staff. - paid salary with possible bonus or commission, or blend of compensation. - insurer owns client expiration list.` 2. Independent Agent - entrepreneur, maintains separate office from insurer, pays for own expense. - paid by commission or by a combination base salary and commission. - contract negotiated between agent and insur...

Indirect Loss - Answer- A secondary loss that follows from a direct loss to insured property from a covered peril. Ex. Hotel expenses incurred by the insured while a fire-damaged home is repaired is an indirect loss that follows the direct loss of the home. Exclusive Agency System - Answer- An insurance distribution system in which producers (agents) represent a single company. Ex. In the exclusive agency system, insurers use independent contractors (exclusive agents) that represent only on...

Wisconsin Insurance Unit 1 Checkpoint Exam Questions and Answers Already Passed A fiduciary is A) another name for commingling B) a beneficiary C) an accounts for funds D) a person in a position of financial trust D At the state level, the government is involved in providing A) war risk insurance B) unemployment insurance C) flood insurance D) federal crop insurance B In an insurance contract, the second party is A) the insurer B) the insured C) the beneficiary D) ...

NC Health Insurance Exam Pearson Vue Latest Graded A+ Pure Risk chance of loss or no loss but not gain insurable Speculative Risk there is possibility of loss but of gain no insurablility exposure unit subject to loss peril cause of loss life insurance death Health insurance accident and sickness hazard increases the likelihood or severity of loss Three types of hazard physical, moral, morale physical hazard arise from the inherent characteristi...

What is a reserve, in insurance terms? correct answers A pool of collected premiums that the insurer sets aside to pay claims Ricky was watching a baseball game at XYZ Stadium, when the railing on which he was leaning gave way and he fell two stories. As a result of his fall, Ricky broke his back and is now paralyzed from the waist down. Ricky sued the owners of XYZ Stadium and was awarded $150,000 to cover his medical bills and $2.5 million in __________ because of the permanent nature of hi...