USAA Chapter 2 Exam With 100% Correct Answers 2024

USAA Chapter 2 Exam With 100% Correct Answers 2024 Agent - answerOne who recieves the authority to act on behalf of someone else. Contracts - answerAgents recieve authority by written __________________. What does it mean that the agent has authrotity to bind? - answerThe agent should take the utmost care with his words and actions because the insurer may have to live with the agents decisions and mistakes. What are the three major responsibilities of contracted agents? - answerAdhree to or follow the contract, use resonable judgement and care at all times. provide all necessary information and documentation to the insurer. What are the three types of authority granted in agency relationships? - answerExpress, Implied, and Apparent Express Authority - answerAuthority that is directly granted to the agent in writing via the agent's contract. With this authority an agent is able to write policies on behalf of the insurer, to collect premiums, and to cancel insurance polices. Implied Authority - answerThe authrority that the public resonably believes the agent to have, based on the agent's representations. Becuase an agent portrays himself as a representative of the insurer, anything the agent says or does is implied to be the action of the insurer. Apparent Authority - answerIndirect authority that is granted when the insurer does not correct its agent, even though the agent may be acting in error. Typically granted when the insurer does not act or by not correctring the agent, the insurer implies consent. Insurers employ four types of sales agents: - answerIndependent insurance Sales Agent, Exclusive Agent, General Agent, and Direct Writer Independent Sales Agent - answerA self-employed and able to represent and offer insurance products from more than one company at the same time. Exclusive Agent - answerAlso known as Captive Agent, he is paid on a commisioned basis, he represents one insurer at a time and provides quotes and policies from only that company. General Agent - answerWorks for only one company. He trains and supervises the exclusive agents for that company. Direct Writer - answerSimilare to an Exclusive Agent in that she works for only one company. selling insurance directly to cus