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USAA Chapter 2 Questions and Answers 100% Verified
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Exam of 10 pages for the course USAA at USAA (USAA Chapter 2)
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USAA Chapter 2Agent - answer One who receives the authority to act on behalf of someone else.
Contracts - answer Agents receive authority by written __________________.
What does it mean that the agent has authority to bind? - answer The agent should take
the utmost care with his words and actions because the insurer may have to live with
the agents decisions and mistakes.
What are the three major responsibilities of contracted agents? – answer Adhree to or
follow the contract, use reasonable judgement and care at all times. provide all
necessary information and documentation to the insurer.
What are the three types of authority granted in agency relationships? - answer
Express, Implied, and Apparent
Express Authority – answer Authority that is directly granted to the agent in writing via
the agent's contract.
With this authority an agent is able to write policies on behalf of the insurer, to collect
premiums, and to cancel insurance polices.
Implied Authority - answerThe authrority that the public resonably believes the agent to
have, based on the agent's representations. Becuase an agent portrays himself as a
representative of the insurer, anything the agent says or does is implied to be the action
of the insurer.
Apparent Authority - answerIndirect authority that is granted when the insurer does not
correct its agent, even though the agent may be acting in error.
Typically granted when the insurer does not act or by not correctring the agent, the
insurer implies consent.
Insurers employ four types of sales agents: - answerIndependent insurance Sales
Agent, Exclusive Agent, General Agent, and Direct Writer
Independent Sales Agent - answerA self-employed and able to represent and offer
insurance products from more than one company at the same time.
, Exclusive Agent - answerAlso known as Captive Agent, he is paid on a commisioned
basis, he represents one insurer at a time and provides quotes and policies from only
that company.
General Agent - answerWorks for only one company. He trains and supervises the
exclusive agents for that company.
Direct Writer - answerSimilare to an Exclusive Agent in that she works for only one
company. selling insurance directly to customers.
Paid on a salaried/.
Sales Agents Four Important Duties: - answerSell insurance polcies, service
policyholders contracts, collect the premiums, represent the insurer.
Claimant - answerAn individual or business that makes a claim for a payment after a
loss occurs.
Must believe loss is covered by an insurance policy, must prove the loss to the insurer
and if loss is covered the insurer will indemnify claimant.
The Claim Function - answerThe part of the insurance contract that lets the insurer fulfill
its promises to the insured. The two main goals are comply with the terms of the
contract, and support the insurer's financial stability.
Adjuster must get claimnants the indemnity they deserve and protect the insurer from
fraud.
Adjusting - answerThe process of comparing a claimant's losses to the promises made
in an insurance policy.
Insurance Adjuster - answerAn agent who processes insuarance claims for a salary, a
fee, or commision.
Who does the adjuster work for? - answerAn insurer, a private company, an adjusting
company, or the claimant.
They can also work for the insured or the insurer
Staff Adjusters - answerwork as salaried employees for only one insurer, They can work
keither locally., regionally or nationally.
Also known as "company" adjusters, typically work for state farm, nationwide, etc.
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