Accident and Health Insurance Exam
Share, Transfer, Avoid, Retain, Reduce
5 ways of managing risk
Managing General Agent
A person who exercises general supervision over the business of the insurer, which
includes hiring and firing agents
Concealment
Failure to disclose a material fact
Surplus Lines
Sold by unauthorized companies, such as Lloyd's of London
Representation
Truth to the best of your knowledge
Warranty
Guaranteed to be true
Stock insurance companies
Pay dividends to stockholders
Reciprocal Insurance company
Unincorporated group of individuals with each party insuring other members
(subscribers) and who is managed by attorney-in-fact
Risk retention groups
Established by and for its members
Independent agents
Own their own accounts and are not insurance company employees
Utmost Good Faith
Rely on the honesty of each other
Adhesion
Insurer must adhere to its ambiguity in favor of the buyer
Moral
Dishonest client
Speculative Risk
Possibility of gain or loss ( gambling risk)
Law of Large numbers
Predicts claims more accurately
Pure risk
Chance of loss without any chance of gain
Aleatory
Unequal
Foreign
Another state
Alien
Another country
Domestic
Home office in ohio
Surcharge
, "Counteroffer" original offer is voided, no coverage until client accepts the policy at the
higher rate an pays the increased premium and signs
Mutual insurance company
"Policy owners / holders" dividends received are not taxable
Stock company
Dividends received by owner are taxable
Consideration
Both answers on the application and the premium. In return, insurance company
promises to coverage
Unilateral
Only one party, makes legally enforceable promise
Peril
Cause of loss
Hazard
Increases the chance of a loss
Director of Insurance
Insurance company must be authorized to do business in Ohio by the
Insurer
Agents represent the
Client
Brokers represent the
Agent
Solicitors represent the
Principle
The insurer is the
Treaty
______ reinsurance, company has pre-negotiated arrangement with a re-insurer
Faculative
______ reinsurance is case-by-case basis
Adverse Selection
Occurrs when policy owner take unfair advantage of the company
Insurance
Defined as the transfer of PURE risk to the insurance company in consideration of a
premium
Fraternal insurer
Covers member of the fraternal association
Lloyd's of London
NOT an insurance company
Workers comp, social security, tricare
3 types of government insurance
Express, implied, apparent
3 types of agents authority
Express
Authority written in agents contract
Implied
Authority not given in agents contract but are things that you must have to do your job
Share, Transfer, Avoid, Retain, Reduce
5 ways of managing risk
Managing General Agent
A person who exercises general supervision over the business of the insurer, which
includes hiring and firing agents
Concealment
Failure to disclose a material fact
Surplus Lines
Sold by unauthorized companies, such as Lloyd's of London
Representation
Truth to the best of your knowledge
Warranty
Guaranteed to be true
Stock insurance companies
Pay dividends to stockholders
Reciprocal Insurance company
Unincorporated group of individuals with each party insuring other members
(subscribers) and who is managed by attorney-in-fact
Risk retention groups
Established by and for its members
Independent agents
Own their own accounts and are not insurance company employees
Utmost Good Faith
Rely on the honesty of each other
Adhesion
Insurer must adhere to its ambiguity in favor of the buyer
Moral
Dishonest client
Speculative Risk
Possibility of gain or loss ( gambling risk)
Law of Large numbers
Predicts claims more accurately
Pure risk
Chance of loss without any chance of gain
Aleatory
Unequal
Foreign
Another state
Alien
Another country
Domestic
Home office in ohio
Surcharge
, "Counteroffer" original offer is voided, no coverage until client accepts the policy at the
higher rate an pays the increased premium and signs
Mutual insurance company
"Policy owners / holders" dividends received are not taxable
Stock company
Dividends received by owner are taxable
Consideration
Both answers on the application and the premium. In return, insurance company
promises to coverage
Unilateral
Only one party, makes legally enforceable promise
Peril
Cause of loss
Hazard
Increases the chance of a loss
Director of Insurance
Insurance company must be authorized to do business in Ohio by the
Insurer
Agents represent the
Client
Brokers represent the
Agent
Solicitors represent the
Principle
The insurer is the
Treaty
______ reinsurance, company has pre-negotiated arrangement with a re-insurer
Faculative
______ reinsurance is case-by-case basis
Adverse Selection
Occurrs when policy owner take unfair advantage of the company
Insurance
Defined as the transfer of PURE risk to the insurance company in consideration of a
premium
Fraternal insurer
Covers member of the fraternal association
Lloyd's of London
NOT an insurance company
Workers comp, social security, tricare
3 types of government insurance
Express, implied, apparent
3 types of agents authority
Express
Authority written in agents contract
Implied
Authority not given in agents contract but are things that you must have to do your job
