property casualty Final Exam Question with 100% complete Answers

property casualty Final Exam Question with 100% complete Answers residual markets A market designed for those risks unable to find coverage in the ordinary market. Reinsurance Companies An insurance company that assumes all or a portion of a risk from a primary or ceding insurance company. treaty agreement Reinsurance agreement that covers all risks contained in the subject line(s) of business automatically. Facultative Agreements Allow the ceding insurer and the reinsurance companies an opportunity to exchange advice about the underwriting of each case ceding company primary insurer Domestic Insurer An insurance company that is only in one state. Insurer an insurance company Insured A person covered by an insurance policy Foreign Insurer An insurance company that is incorporated in another state. Alien Insurer An insurance company that is incorporated outside the United States. Admitted Insurer An insurance company authorized and licensed to transact business in a particular state. Non-admitted Insurer an insurer not licensed to do business in the state Underwriting Department determines whether the applicant can get insurance sales department department responsible for finding customers and making sales claims department Assists the policyholder in the event of a loss Law of Agency The law that governs the relationship between the insurance company and his or her agent. Fair Credit Reporting Act Law that grants consumers to the right to know who requests to view their credit report over the past year Financial Anti-Terrorism Act (USA Patriot Act) Imposes record keeping and government spending reporting requirements on banks, financial institutions, and non-financial businesses for specific financial transactions and customer financial records. Gramm-Leach-Bliley Act protects personal financial information Commercial Insurance covers business interests risk The chance of loss from an event that cannot be entirely controlled Speculative Risk a situation in which either profit or loss is possible Pure Risk A chance of loss or no loss, but no chance of gain. loss Reduction, decrease, or disappearance of value. hazard a condition that increases the chance of los