Louisiana P&C Adjuster Exam Prep 2024 Verified Questions and Answers Graded A

The one who receives the authority to act on behalf of someone else? - Agent what does a sale's agent receive authority for? - to sell An insurance agent receives authority to what? - Settle claims brought against the insurer How do agents receive their authority? - written contract What is the power to bind? - an agent's authority can bind: -what an agent says or does can bind insurer -agents should take the utmost care in what they say or do -even if insure makes mistakes, the insurer may have to accept them What are the three major responsibilities of contracted agents? - e to or follow contract 2. use reasonable judgement and care at all times 3. provide all necessary info and documentation to the insurer What are the three types of authority granted in agency relationship? - expressed, implied, apparent What is expressed authority? - authority that is directly granted to the agent in writing via the agent's contract (usually to sell policies, collect premiums, issue binders, offer discounts, cancel insurance) What is implied authority? - authority that the public reasonably believes the agent to have, based on the agent's representations What does representation include? - -portraying oneself as a representative -wearing a name tag w/ company logo -handing out company business cards -words to perform agent's duties What is apparent authority? - indirect authority that is granted when the insurer does not correct agent, even though agent may be acting in error -by not correcting agent, insurer implies consent -granted when insurer does not act What are the four types of sales agents? - -independent insurance sales agent -exclusive agent -general agent -direct writer What is an independent agent? - -self employed -offers insurance from more than one company at the same -they can compare and give quotes from different companies -find a policy that best suits the customer What is an exclusive agent? - -also called captive agent -commissioned -represents only one insurer and only their policies What is a general agent? - -works for only one insurance company -supervises other exclusive agents -trains other agents What is a direct writer agent? - -salaried employees -works for one company What are the sale agent duties? - -sell insurance policies -service policyholders contracts -collect premiums -represent the insurer What are the two claim function purpose? - -comply w/ terms fo the contract -support the insurer's financial stability *** part of the insurance contract that lets the insurer fulfill its promises to the insured What must an adjuster do when dealing with a claim? - they must get claims the indemnity they serve while protecting the insurer from fraud and making sure not to pay more than the contract allows What is adjusting? - -process of comparing a claimant's losses to the promises made by an insurance policy What is an insurance adjuster? - -an agent who processes insurance claims for a salary, a fee, or commission What are the types of adjusters? - -staff adjuster -independent adjuster -public adjuster