Exam FX Chapter 1: General Insurance Questions and Answers Rated A

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Exam FX Chapter 1: General Insurance Questions and Answers Rated A Agent/Producer ✔✔a legal representative of an insurance company; the classification of producer usually includes agents and br... okers; agents are the agents of the insurer Applicants (or proposed insured) ✔✔a person applying for insurance Broker ✔✔an insurance producer not appointed by an insurer and is deemed to represent the client Insurance Policy ✔✔a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events Insured ✔✔the person covered by the insurance policy. This person may or may not be the policyowner Insurer (principal) ✔✔the company who issues an insurance policy Policyowner ✔✔the person entitled to exercise the rights and privileges in the policy Premium ✔✔the money paid to the insurance company for the insurance policy Reciprocity/Reciprocal ✔✔a mutual interchange of rights and privileges Insurance ✔✔transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. 4 types of insurance transactions ✔✔Solicitation Negotiations Sale (effectuation of a contract of insurance) Advising an individual concerning coverage of claims Risk ✔✔the uncertainty or change of a loss occurring. [Show More]

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