State Farm Fire State Test 100% Correct

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