Insurance producer - ANSWER An individual or an entity authorized in writing by a lawfully qualified insurance compnay to transact, negotiate or effect contracts of insurance of behalf of that insurance company.
Resid
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Insurance producer - ANSWER An individual or an entity authorized in writing by a lawfully qualified insurance compnay to transact, negotiate or effect contracts of insurance of behalf of that insurance company.
Resident Producer - ANSWER Any person that lives in kansas and is licensed to transact insurance business for at least one insurer.
A Non-resident producer - ANSWER A producer that lives in some other state;they are licensed in their owen home stae and has written permission from the kansas insurance commisioner to sell in our state.
Commissioner - ANSWER The insurance induster is regulated by the kansas insurance commissioner, who is elected by the people to a 4 year term in kansas
Purpose of the commissioner - ANSWER The insurance commissioner administers or regulates the laws that have been passed by the legislature. The commissioner does not make or change insurance laws, but instead has the power to make reasonable rules and regulations to ensure that the laws are beng followed.
Redlining - ANSWER the practice of not seeling insurance to those who live in the low-income, high-crime areas of town and is considered to be a form of unfair discrimination.
Unfair Trade Practices Act - ANSWER a state law that details illegal actions performed by producers. if a producer is found guilty of any of the following actions, penalties could include licensure suspension or revocation, fines, cease and desist orders and redress of injury.
Fair Credit Reporting Act - ANSWER The kansas property and casualty guarantee association provide payment for covered claims under certain insurance plicies in the event of insolvency of the insurer. All insurance companies holding certificates of authority to conduct business in kansas must be members and participate in this program through assessments. Each member is assessed a pro-rata share based on net written premiums from the previous year. the maximum assessment is 2% of net written premiums.
Peril - ANSWER a specific "cause of loss"
Direct loss - ANSWER The cost to repair the damaged property. The physical loss to the property, auto, etc. cause by the peril itself. The direct loss is visible physical loss.
Indirect/consequential loss - ANSWER the financial loss suffered because of the "loss of use" of the covered property. the loss incurred because of the "loss of use" of the covered property. such as hotel expenses or rental care expenses.
Exposure - ANSWER The amount of money the insured or compnay could conceivable incur
Catastrophic - ANSWER damage, flood loss and nuclear damage are not covered by standard insurance policies because of the hgh exposure to loss if the loss were to occur
Binder - ANSWER Provides immediate, temporary evidence of coverage until the policy is issured
Producer responsibility - ANSWER Producers may be obligated to reimburse their company for their actions.
Law of large numbers - ANSWER The larger the number, the more accurate the statistic. The data collected is separated into homogenous exposure units to get the most accurate prediction possible.
Deductible - ANSWER represents the out of pocket exposure to the insured in the event of a claim. Helps to reduce claims frequency and thereby reduces the cost of the insurance policy
Acual cash value (ACV) - ANSWER The replacement cost value of property less depreciation, obsolescence and deterioration.
Replacement cost value (RCV) - ANSWER Calculation of loss by figuring the cost to repair or replace at todays labor and material costs.
Market value - ANSWER the amount to buy or sell property
stated value - ANSWER pays the cost of repair up to the stated value, whichever is less, at the time that a claim is filed.
Salvage Value - ANSWER Amount retained by the resell of damaged property. helps to reduce the insurers companys cost
Domestic insurers - ANSWER Are strucured under the laws of this state
Foreign insurers - ANSWER Are structured under the laws of another state
Admitted compnaies licensed - ANSWER Authorized to do business in this state. offer mainstream coverages:such as, homeowners, auto, and crop.
Non-admitted companies not licensed - ANSWER Not authorized to do business in this state. offer coverage that is unusual or rare. Such as race care coverage, insurance for a body part. You must be licensed as an excess lines broker to have the authority to conduct business with compnies in this class.
Replace Value - ANSWER The actual cost to repair or replace at todays labor and material cost without allownaces for deterioration, obsolescence and depreciation.
When a new homeowners or personal auto policy is issued, what is the usual length of time that a company can cancel a policy for any reason? - ANSWER 60 days
Who can cancel a binder? - ANSWER The insurer
When does the policy period begin? - ANSWER When the agent binds the coverage
Twisting - ANSWER Replacing an existing policy to the detriment of the insured
When can an agent use statistics in advertising during a sales presentation? - ANSWER when approved by their company
if you are denied insurance because of your driving record, what law requires the insurance company to notify you of the reasons for denial? - ANSWER The unfair trade practices act.
When an isurer whats to advertise in this state, what must they submit to the kansas insurance department? - ANSWER Copies of advertisements.
What information must be included in agents' advertisements? - ANSWER The agents full name and number
What is the maximum fine for an unintentional violation after an agent has been found guilty by the insurance commissioner, and placed under a cease and desist order? - ANSWER $1000
Reimbursement contract - ANSWER An insurance contract that indemnifies the insured to the actual amount of loss, or for a state amount
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