Exam FX Chapter 1 General Insurance questions with answers

Exam FX Chapter 1: General Insurance
questions with answers


Agent/Producer - ...,.🔹VERIFIED ANSWER **✔✔a legal
representative of an insurance company; the classification of
producer usually includes agents and brokers; agents are the agents
of the insurer


Applicants (or proposed insured) - ...,.🔹VERIFIED ANSWER
**✔✔a person applying for insurance


Broker - ...,.🔹VERIFIED ANSWER **✔✔an insurance producer
not appointed by an insurer and is deemed to represent the client


Insurance Policy - ...,.🔹VERIFIED ANSWER **✔✔a contract
between a policyowner (and/or insured) and an insurance
company which agrees to pay the insured or the beneficiary for loss
caused by specific events


Insured - ...,.🔹VERIFIED ANSWER **✔✔the person covered by



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, the insurance policy. This person may or may not be the
policyowner


Insurer (principal) - ...,.🔹VERIFIED ANSWER **✔✔the company
who issues an insurance policy


Policyowner - ...,.🔹VERIFIED ANSWER **✔✔the person entitled
to exercise the rights and privileges in the policy


Premium - ...,.🔹VERIFIED ANSWER **✔✔the money paid to the
insurance company for the insurance policy


Reciprocity/Reciprocal - ...,.🔹VERIFIED ANSWER **✔✔a mutual
interchange of rights and privileges


Insurance - ...,.🔹VERIFIED ANSWER **✔✔transfers the risk of
loss from an individual or business entity to an insurance company,
which in turn spreads the costs of unexpected losses to many
individuals.


4 types of insurance transactions - ...,.🔹VERIFIED ANSWER




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