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Terms in this set (398)
agent or producer legal representative of an insurance company:
the classification of producer usually includes
agents & brokers; agents are the agents of the
insurer
applicant or proposed insured a person applying for insurance
consent permission to do something
insurable interest the policy owner facing the possibility of losing
something of value in the event of loss; proven
by love and affection, economic or financial
loss, required at time of policy issuance
insurance policy a contract between policy owner (and/or
insured) & an insurance company which agrees
to pay the insured or the beneficiary for loss
caused by specific events
, insured a person covered by an insurance policy; may
or may not be the policy owner
insurer (principal) the company who issues an insurance policy
policy owner the person entitled to exercise the rights and
privileges in the policy
premium the money paid to the insurance company for
the insurance policy
completing application and producers 1st major role in transacting
delivering the policy insurance
steps of application process completing the form
collecting the premium
delivering the policy
contract law for contracts to be legally binding, they must
have:
1. agreement - offer & acceptance
2. consideration
3. competent parties
4. legal purpose
acceptance occurs when insurers underwriter approves
application and issues a policy
consideration binding force in any contract, something of
value each party gives to each other
100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (398)
agent or producer legal representative of an insurance company:
the classification of producer usually includes
agents & brokers; agents are the agents of the
insurer
applicant or proposed insured a person applying for insurance
consent permission to do something
insurable interest the policy owner facing the possibility of losing
something of value in the event of loss; proven
by love and affection, economic or financial
loss, required at time of policy issuance
insurance policy a contract between policy owner (and/or
insured) & an insurance company which agrees
to pay the insured or the beneficiary for loss
caused by specific events
, insured a person covered by an insurance policy; may
or may not be the policy owner
insurer (principal) the company who issues an insurance policy
policy owner the person entitled to exercise the rights and
privileges in the policy
premium the money paid to the insurance company for
the insurance policy
completing application and producers 1st major role in transacting
delivering the policy insurance
steps of application process completing the form
collecting the premium
delivering the policy
contract law for contracts to be legally binding, they must
have:
1. agreement - offer & acceptance
2. consideration
3. competent parties
4. legal purpose
acceptance occurs when insurers underwriter approves
application and issues a policy
consideration binding force in any contract, something of
value each party gives to each other
