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19 Cards in this Set
- Front
- Back
a form of misrepresentation in which the agent convincesthe client to cancel already-existing insurance and buy another policyfrom the agent, to the detriment of the insured |
Twisting: |
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This means that an insured cannot begiven a lower or higher rate than another insured in identical circumstances.It also means that the agent cannot accept a bribe from a client to provideinsurance or lower the premium. |
Unfair Discrimination |
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Which department within an insurance company organization is typically responsible for helping to cover the insurer's exposure to loss? |
Reinsurance Department |
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legal principle that states thatif one intentionally or unintentionallycreates the impression that a certain factexists, and an innocent party relies on thatimpression and is injured as a result, theguilty party may be legally prohibited fromasserting that the fact does not exist. |
Estoppel |
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A contract where one party hasmore power than the other party in drafting the contract; |
Adhesion |
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What does the liberalization clause do to a property policy? |
Broadens coverage |
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Knowingly lying on an application in order to obtain coverage would be an example of |
Fraud |
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Authority given by the principal tothe agent that is not formally expressed or communicated |
Implied authority |
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Authority specifically given to an agent, either orally or inwriting, by the principal. |
Expressauthority |
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Legal doctrine that states that anagent has whatever authority a reasonable personwould assume she has |
Apparent authority |
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An insured owns 4 stores. As inventory is sold, the insured transfers new inventory from the other locations to the store making the sales. Which type of policy would best fit this insured's needs |
Blanket policy |
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Type of liability imposed by law onthose participating in certain activities that are consideredespecially hazardous |
Absolute liability |
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Liability that a person or businessincurs because of the actions of others, such as familymembers or employees; also called imputed liability |
vicarious liability |
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The amount of payment that comes into play when an insured fails to carry the sufficient amount of insurance is sometimes referred to as the |
coinsurance penalty |
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someone who has taken temporary custody of another person's property for a special purpose |
bailee |
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The withholding of a material fact involvedin the contract on which the insurer relies |
Concealment |
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is a written or verbal misstatement of a material factinvolved in the contract on which the insurer relies. |
Misrepresentation |
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is the tendency for people with a greater-than-averageexposure to loss to purchase insurance |
Adverse selection |
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is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid by the insurance carrier to the insured for the loss. |
Subrogation |