Ch.1 General Insurance Questions and answers latest update

Ch.1 General Insurance Questions and answers latest update Certificate of Authority Permits an insurance company to transact business in this state Marketing and distribution systems used by insurers Captive Agency System, General Agency System, Independent Agency System, Direct Writers,Direct Mail/Response Insurance Agencies Responsible for recruitment, contracting, training and supporting insurance producers Admitted An insurer authorized to do business within the state; could be domestic, foreign or alien Representations Statements made on the application by the applicant that are believed to be true to the best of his/her knowledge Independent Agency Owner of an agency, sells and places business with different insurers representing them by contract. Marketing and distributing business Risk Management Process of analyzing risk exposures and designing programs to handle them Apparent Authority Created when a producer/agent exceeds the authority stipulated in his/her contract and the insurer does nothing to counter the public impression that such authority exists (the producer/agent accepting premiums on lapsed policies) Formation What contract law pertains to as well as the enforcement of legal contracts FIO Job is to monitor the insurance industry and identify issues and gaps in the state regulation Not an insurance risk Intentional loss McCarran-Ferguson Act 1945 Gave states the authority to regulate insurance without interference from federal regulation, unless federal law specifically provides otherwise