C130 (Study 1 - Terms) Essential Skills for the Insurance Broker and Agent Questions with Correct Answers
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Course
Devoted health care
Institution
Devoted Health Care
insurance Correct Answer-A contract in which one party (the insurer) for monetary consideration agrees to reimburse another (the insured) for loss or liability for a loss on a defined subject caused by specified hazards or perils.
risk Correct Answer-The chance of loss. Specifically, the possibl...
C130 (Study 1 - Terms) Essential Skills for the
Insurance Broker and Agent Questions with Correct
Answers
insurance Correct Answer-A contract in which one party (the insurer)
for monetary consideration agrees to reimburse another (the insured) for
loss or liability for a loss on a defined subject caused by specified
hazards or perils.
risk Correct Answer-The chance of loss. Specifically, the possible loss
or destruction of property or the possible incurring or a liability.
Sometimes referred to as the subject of an insurance contract.
speculative risk Correct Answer-chance of loss or gain; not insurable
intermediary Correct Answer-1. The agent/broker negotiating insurance
or reinsurance contracts for another. 2. Any party representing another
party, in negotiation with a third party.
agent Correct Answer-A person licensed and authorized or employed to
act on behalf of another.
broker Correct Answer-A licensed independent person or firm who acts
on behalf of an insured in placing business with insurance companies.
, Distribution of insurance Correct Answer-Independent Agency,
Independent Brokerage, Exclusive Agency, Direct Writer and Online
and Call Centre
Independent Agency System Correct Answer-A system of marketing
insurance through independent contractors (agents) who sell insurance
on a commission or fee basis with one or more in insurers.
independent brokerage system Correct Answer-A System in which
independent insurance professionals, licenced as insurance brokers, are
contracted to sell insurance on behalf of an insurer or multiple insurers.
Exclusive Agency System Correct Answer-A system of marketing
insurance through licensed agents who represent only one company or a
group of companies under similar management.
direct writer Correct Answer-Insurance company selling directly to the
public and not through independent agents or brokers.
Independent Agent Correct Answer-An agent can only represent one
company and up to three insurers.
Exclusive Agent Correct Answer-An agent who represents and sells for
only one company. Has underwriting and binding authority. Also known
as direct writer agent, direct agent or captive agent.
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