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Cards In This Set
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In insurance contracts, when is the offer usually made?
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When application is submitted
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What is the fee a person pays an insurance company to receive coverage?
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Premium
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An insurance policy paid a nontaxable dividend to the insured one year, & nothing the next. From what type of insurer did the insured purchase the policy?
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Mutual
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For the purpose of insurance, what is risk?
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Uncertainty of loss
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What is the term for the causes of loss insured against in an insurance policy?
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Peril
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What law protects consumers from the circulation of inaccurate or obsolete information?
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Fair credit reporting act
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What do individuals use to transfer their risk of loss to a larger group
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Insurance
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What are the five characteristics of an ideally insurable risk?
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loss, definite & measurable, statistically predictable & coverage not mandatory
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What document is required for an insurance company to transact insurance?
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certificate of authority
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A state issued document empowering and insurance company to become an admitted insurer is called what?
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certificate of authority
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Conditions that increase the chance of loss are known as what?
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Hazards
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What is the difference between cancellation & nonrenewal?
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Cancellation is the termination of an insurance policy by either party prior to the to the [policy's expiration date. Nonrenewal is the termination of a policy as its expiration date by not offering a continuation of the existing policy.
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Insurance is used to transfer what to an insurance company
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Financial responsibility for loss
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The type of insurance company organized to return any profits to its stockholders is known as what?
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Stock company
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Insurance is a contract that protects the insured from what?
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loss
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