CPCU 530 - Chapter 8 Exam | Questions with
100% Correct Answers | Verified | Latest Update
2026/2027
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Terms in this set (26)
What is an insurance producer? Places business with insurers and may be agents or
brokers
What is a General Insurance Agent? Have broad powers within underwriting guidelines
What are the 5 possible duties of 1. Solicit applicants and accept applications
general agents? 2. Receive premiums
3. Issue and renew policies
4. Appoint sub-agents
5. Adjust losses
What is a special agent? Has only the powers specified in their agency
contract or agency agreement?
What are the three possible duties of 1. Solicit applications
a special agent? 2. Forward applications to insurer
3. Deliver policies upon receipt of their first
premium
What is a soliciting agent? Is either a subagent of a general agent, or a life
health agent. Is authorized to solicit applications
and forward them to the insurer
, What is a broker? Is an agent of the insured, authorized to procure
their insurance.
What are the four duties of a broker? 1. Obtain insurance for their customer
2. Choose the insurer to provide needed coverage
3. Arrange premium payments
4. Monitory policy coverage
What are three optional additional 1. Risk consulting services
services that are generally only 2. Risk control services
offered by a broker? 3. Claims services
What is actual authority of a Intentionally created by the insurer
producer?
What is express authority? Actual authority as stated in the agency agreement,
application for insurance, or insurance contract
What is implied authority? Actual authority created by the insurer's acts, such
as accepting applications
What is apparent authority (aka Created by the insurers acts that create the
agency by estoppel)? appearance of an agency relationship from the
perspective of a reasonable third party
Why is apparent authority also called Because the creation of the appearance of an
agency by estoppel? agency relationship (IE giving the agent
apps/stationery) estops the insurer from denying
the actual existence of a relationship
What is authority created by When an insurer ratifies the acts of an unauthorized
ratification? agent by knowingly accepting the benefits of the
agents actions
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (26)
What is an insurance producer? Places business with insurers and may be agents or
brokers
What is a General Insurance Agent? Have broad powers within underwriting guidelines
What are the 5 possible duties of 1. Solicit applicants and accept applications
general agents? 2. Receive premiums
3. Issue and renew policies
4. Appoint sub-agents
5. Adjust losses
What is a special agent? Has only the powers specified in their agency
contract or agency agreement?
What are the three possible duties of 1. Solicit applications
a special agent? 2. Forward applications to insurer
3. Deliver policies upon receipt of their first
premium
What is a soliciting agent? Is either a subagent of a general agent, or a life
health agent. Is authorized to solicit applications
and forward them to the insurer
, What is a broker? Is an agent of the insured, authorized to procure
their insurance.
What are the four duties of a broker? 1. Obtain insurance for their customer
2. Choose the insurer to provide needed coverage
3. Arrange premium payments
4. Monitory policy coverage
What are three optional additional 1. Risk consulting services
services that are generally only 2. Risk control services
offered by a broker? 3. Claims services
What is actual authority of a Intentionally created by the insurer
producer?
What is express authority? Actual authority as stated in the agency agreement,
application for insurance, or insurance contract
What is implied authority? Actual authority created by the insurer's acts, such
as accepting applications
What is apparent authority (aka Created by the insurers acts that create the
agency by estoppel)? appearance of an agency relationship from the
perspective of a reasonable third party
Why is apparent authority also called Because the creation of the appearance of an
agency by estoppel? agency relationship (IE giving the agent
apps/stationery) estops the insurer from denying
the actual existence of a relationship
What is authority created by When an insurer ratifies the acts of an unauthorized
ratification? agent by knowingly accepting the benefits of the
agents actions
