What method do insurers use to protect themselves against catastrophic losses quizlet?

Reinsurance is a method used by insurers to protect against catastrophic losses.

What methods do insurers use to protect themselves against catastrophic losses?

Insurance companies buy reinsurance to protect themselves from catastrophic losses. In exchange for a set premium, a company offering reinsurance might promise to pay for 90 percent of any losses within the next year that exceed $450 million and are less than $600 million.

What method do insurers use to protect themselves?

Insurance companies buy reinsurance to protect themselves from catastrophic losses. In exchange for a set premium, a company offering reinsurance might promise to pay for 90 percent of any losses within the next year that exceed $450 million and are less than $600 million.

What documentation grants express authority to an agent quizlet?

What documentation grants express authority to an agent? ~ The principal grants authority to an agent through the agent’s contract.

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What best describes an insurance company that has been formed under the laws of this state?

Domestic Agency or Company – An agency or company formed under the laws of the state in which the insurance is written.

What is a material misrepresentation?

In an insurance contract, a material misrepresentation occurs when the insured makes an untrue statement that: 1) is material to the acceptance of the risk; and 2) would have changed the rate at which insurance would have been provided or would have changed the insurer’s decision to issue the contract.

What are marketing arrangements used by insurers?

There are mainly following types of marketing systems used by insurers: The independent agency system. The exclusive agency system. The direct mail system.

What is a foreign insurer?

Foreign Insurer — from the U.S. perspective, an insurer domiciled in the United States but outside the state in which the insurance is to be written. In effect, it is a domestic insurer doing business outside of the state in which it is domiciled.

Which law is the foundation of the statistical prediction of loss?

Law of large numbers states the the larger a group is, the more accurately losses reportedly will equal the underlying probability of loss, is the basis for statistical prediction of loss upon which rates for insurance are calculated.

Which of the following best defines unfair discrimination?

Unfair discrimination occurs when an insurer charges two people of equal risk different rates or provides disparate services or benefits based solely on differences in race, religion, physical ability, national origin, or location of residence.”

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Which of the following is not a responsibility of the Office of Insurance Regulation quizlet?

which of the following is NOT a responsibility of Office of Insurance Regulation? Enacting new insurance laws. which of the following is true regarding branch agency licensing? Misrepresentation.

When an insured makes a truthful statement?

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what? Consideration. And insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.

Which authority is not stated in an agents contract?

Implied authority is an authority that is not express or written into a contract, but it is authority an agent is assumed to have in order to transact the business for a principal.