Property and casualty insurance (maine) Exam
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Terms in this set (430)
Risk Sharing/Risk Sharing Plan Insurers agree to apportion among themselves
those risks.
Law of Agency A relationship between two parties where one (the
producer/agent) may act on the behalf of the other
(the insurer/principal) and bind the actions or
words of the principal.
Insurable Interest Possibility of economic loss.
Life and Health — Interest must exist at time of
application/purchase.
Property — Interest must exist at time of loss/claim
(ownership is evidence).
Casualty — Interest results from property rights,
contract rights and potential legal liability.
Voidable Contract A valid contract that may be set aside by one of the
parties for reasons satisfactory to a court. Example:
An insurer may void or revoke coverage for
misrepresentation or fraud.
Express Written in a producer contract (binding authority).
, Lapse Date The date when insurance coverage ends.
Financial Anti-Terrorism Act (USA Imposes record keeping and government
Patriot Act) reporting requirements on banks, financial
institutions and non-financial businesses for
specific financial transactions and customer
financial records.
Direct Mail A marketing system utilizing direct mail,
newspapers, magazines, radio, television, internet,
web sites, call centers and vending machines.
Sells insurance policies directly to the public with
licensed employees or contractors.
'A' Rating or Judgment Rating Rates are based on the underwriter's judgment and
experience.
Alien Insurer An 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.
Representation Statements made on an application by applicant
that are believed to be true, but are not
guaranteed (warranted).
Residual Markets A market designed for those risks unable to find
coverage in the ordinary market.
Joint Underwriting (reinsurance) Pool —
Participating insurers accept every eligible risk, and
then may choose to reinsure some risks.
Risk Sharing Plan — Insurers agree to apportion
among themselves those risks.
study guide | Questions with 100% Correct
Answers | Verified | Latest Update 2026
Save
Terms in this set (430)
Risk Sharing/Risk Sharing Plan Insurers agree to apportion among themselves
those risks.
Law of Agency A relationship between two parties where one (the
producer/agent) may act on the behalf of the other
(the insurer/principal) and bind the actions or
words of the principal.
Insurable Interest Possibility of economic loss.
Life and Health — Interest must exist at time of
application/purchase.
Property — Interest must exist at time of loss/claim
(ownership is evidence).
Casualty — Interest results from property rights,
contract rights and potential legal liability.
Voidable Contract A valid contract that may be set aside by one of the
parties for reasons satisfactory to a court. Example:
An insurer may void or revoke coverage for
misrepresentation or fraud.
Express Written in a producer contract (binding authority).
, Lapse Date The date when insurance coverage ends.
Financial Anti-Terrorism Act (USA Imposes record keeping and government
Patriot Act) reporting requirements on banks, financial
institutions and non-financial businesses for
specific financial transactions and customer
financial records.
Direct Mail A marketing system utilizing direct mail,
newspapers, magazines, radio, television, internet,
web sites, call centers and vending machines.
Sells insurance policies directly to the public with
licensed employees or contractors.
'A' Rating or Judgment Rating Rates are based on the underwriter's judgment and
experience.
Alien Insurer An 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.
Representation Statements made on an application by applicant
that are believed to be true, but are not
guaranteed (warranted).
Residual Markets A market designed for those risks unable to find
coverage in the ordinary market.
Joint Underwriting (reinsurance) Pool —
Participating insurers accept every eligible risk, and
then may choose to reinsure some risks.
Risk Sharing Plan — Insurers agree to apportion
among themselves those risks.
