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Terms in this set (281)
Representations and Warranties Representations are statements the applicant
makes on an application that are deemed to be
true to the applicant's best knowledge.
Warranties are statements the insurer makes in
the contract.
Underwriting vs. Actuarial Two related insurance company functions.
Departments Through the process of _________, applications are
assessed for insurability and to assign premium
rates. The ________ department analyzes data to
help estimate future losses and to produce rate
tables.
Managerial System vs. General Two variations of the career agency system in
Agency System which producers represent a single company.
One is headed by a company employee called
a general manager (GM), the other by an
independent contractor called a general agent
(GA).
,Fraternal Insurance Company A non-profit form of insurance provider
sponsored by an organization of people who
share a common ethnic, religious, or vocational
affiliation.
Peril and Hazard Two related general insurance terms:
Peril is the immediate cause of a loss (and the
event that is insured against).
Hazard is any condition that increases the risk
of incurring a loss.
Contract of adhesion A type of contract in which one party (the
offeror) drafts the terms that must be accepted
as-is by the offeree. Insurance policies are this
type.
Mutual Insurance Company A form of insurance company that is owned by
policyowners. May distribute policy dividends
(non-taxable) through participating policies.
Independent Agency System An insurance distribution system in which the
manager and producers are fully independent
and not affiliated with any single insurer.
Buyer's Guide and Policy Summary Two related disclosure documents that are
required by most states to be presented to life
and health insurance applicants at some point
during the buying process.
Risk A basic insurance term referring to the
possibility of incurring a loss.
, Law of Large Numbers A mathematical principle that is the basis for
predicting the odds of a loss occurring in a
certain population in any given year.
Social Security (OASDI) A federal insurance program that provides
disability, death, and retirement benefits to
covered workers and their qualifying
beneficiaries.
Agents vs. Brokers Two basic types of insurance producer: an ______
represents a single insurer and a _____ sells
policies from multiple insurers.
Reinsurance The process through which insurance
companies spread large risks among other
insurers.
Domestic, Foreign, and Alien Insurers can be categorized by their state of
Insurers domicile. There are three categories, known as
_____, _____, and _____.
Stock Insurance Company A form of insurance company that is owned by
stockholders who may or may not also be
policyowners. May distribute stock dividends
(taxable).
Admitted Insurer An insurer that has a certificate of authority in a
given state is said to be an___________ insurer in
that state.
100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (281)
Representations and Warranties Representations are statements the applicant
makes on an application that are deemed to be
true to the applicant's best knowledge.
Warranties are statements the insurer makes in
the contract.
Underwriting vs. Actuarial Two related insurance company functions.
Departments Through the process of _________, applications are
assessed for insurability and to assign premium
rates. The ________ department analyzes data to
help estimate future losses and to produce rate
tables.
Managerial System vs. General Two variations of the career agency system in
Agency System which producers represent a single company.
One is headed by a company employee called
a general manager (GM), the other by an
independent contractor called a general agent
(GA).
,Fraternal Insurance Company A non-profit form of insurance provider
sponsored by an organization of people who
share a common ethnic, religious, or vocational
affiliation.
Peril and Hazard Two related general insurance terms:
Peril is the immediate cause of a loss (and the
event that is insured against).
Hazard is any condition that increases the risk
of incurring a loss.
Contract of adhesion A type of contract in which one party (the
offeror) drafts the terms that must be accepted
as-is by the offeree. Insurance policies are this
type.
Mutual Insurance Company A form of insurance company that is owned by
policyowners. May distribute policy dividends
(non-taxable) through participating policies.
Independent Agency System An insurance distribution system in which the
manager and producers are fully independent
and not affiliated with any single insurer.
Buyer's Guide and Policy Summary Two related disclosure documents that are
required by most states to be presented to life
and health insurance applicants at some point
during the buying process.
Risk A basic insurance term referring to the
possibility of incurring a loss.
, Law of Large Numbers A mathematical principle that is the basis for
predicting the odds of a loss occurring in a
certain population in any given year.
Social Security (OASDI) A federal insurance program that provides
disability, death, and retirement benefits to
covered workers and their qualifying
beneficiaries.
Agents vs. Brokers Two basic types of insurance producer: an ______
represents a single insurer and a _____ sells
policies from multiple insurers.
Reinsurance The process through which insurance
companies spread large risks among other
insurers.
Domestic, Foreign, and Alien Insurers can be categorized by their state of
Insurers domicile. There are three categories, known as
_____, _____, and _____.
Stock Insurance Company A form of insurance company that is owned by
stockholders who may or may not also be
policyowners. May distribute stock dividends
(taxable).
Admitted Insurer An insurer that has a certificate of authority in a
given state is said to be an___________ insurer in
that state.
