Delaware Insurance Exam - Chapter 1
Admitted - ANS-A company that has been issued a Certificate of Authority and is
authorized to do business in the state
Adverse Selection - ANS-The likelihood that those who are uninsurable obtain
insurance to the detriment of those who are insurable and considered to be ideal
insurance risks.
Agent - ANS-A licensed individual who represents the interests of the insurer
Alien Insurer - ANS-An insurance company doing business in a state that is domiciled in
another country
Apparent Authority - ANS-Authority exceeding an agent's expressed or implied authority
Attorney-in-fact - ANS-Individual who manages the affairs of a reciprocal company,
including the collection of premium assets
Broker - ANS-A licensed individual who represents the interests of the consumer
Certificate of Authority - ANS-Authorization to do business in a state issued by a state
department of insurance or insurance commission
Domestic Insurer - ANS-An insurance company doing business in a state that is
domiciled in the same state
Expressed Authority - ANS-Authority permitted to an agent under the contract
Fiduciary Responsibility - ANS-The responsibility of an agent to act in financial
transactions for the insured, such as collecting premiums
Foreign Insurer - ANS-An insurance company doing business in a state that is domiciled
in another state
Fraternal Benefit Societies - ANS-A type of insurance company that insures risks of its
members, such as those belonging to a fraternal order or society, religious order, or
other benefit society or lodge
Admitted - ANS-A company that has been issued a Certificate of Authority and is
authorized to do business in the state
Adverse Selection - ANS-The likelihood that those who are uninsurable obtain
insurance to the detriment of those who are insurable and considered to be ideal
insurance risks.
Agent - ANS-A licensed individual who represents the interests of the insurer
Alien Insurer - ANS-An insurance company doing business in a state that is domiciled in
another country
Apparent Authority - ANS-Authority exceeding an agent's expressed or implied authority
Attorney-in-fact - ANS-Individual who manages the affairs of a reciprocal company,
including the collection of premium assets
Broker - ANS-A licensed individual who represents the interests of the consumer
Certificate of Authority - ANS-Authorization to do business in a state issued by a state
department of insurance or insurance commission
Domestic Insurer - ANS-An insurance company doing business in a state that is
domiciled in the same state
Expressed Authority - ANS-Authority permitted to an agent under the contract
Fiduciary Responsibility - ANS-The responsibility of an agent to act in financial
transactions for the insured, such as collecting premiums
Foreign Insurer - ANS-An insurance company doing business in a state that is domiciled
in another state
Fraternal Benefit Societies - ANS-A type of insurance company that insures risks of its
members, such as those belonging to a fraternal order or society, religious order, or
other benefit society or lodge
