Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Types of Ins. Co.'s
Ga P & C Insurance Exam - Types of Ins Co's
| Question | Answer |
|---|---|
| What are the 2 chief char. of insurance? | 1. Transfer of Risk (buy insurance) 2. Share of Losses (by policy holders) |
| who is party 1 in an insurance policy? | the insured |
| How many yrs data min. to meet Law of Large #'s? | 5yrs |
| What type of casualty insurance guarantees performance (i.e. by contractors)? | surety bonds |
| What type of casualty insurance covers financial losses caused by employee dishonesty? | fidelity bonds |
| Who regulates the insurance industry? | States (not fed gov) |
| What classification of ins. co. writes the majority of its business in a state other than the state where its home office is located? | foreign |
| If an ins. co. is based in Puerto Rico but writes insurance in Ga, then what classification of ins. co. is it? | foreign (not alien) |
| What classification of ins. co. writes the majority of its business in a US state but has its home office in Canada? | alien |
| What law did congress pass in 1945 to establish state reg. auth. of ins.? | McCarren-Ferguson Act |
| What 1970's law established reg. to protect consumers concerning use of credit info in transactions? | Fair Credit Reporting Act |
| All ins. co.'s in Ga can be classified into what two categories? | Authorized and unauthorized |
| A certificate of authority from the state of Ga allows an ins. co. to do what? | 1. contract agents 2. write insurance |
| What is an example of an unauthorized ins. co. operating in Ga? | Lloyds of London |
| Who contracts between licensed agents in Ga and an unauth. ins. co.? | surplus line broker |
| What qualifies a surplus lines risk? | must be rejected by a min. of 3 auth. ins. co.'s |
| What type of insurance is designed to maintain financial stability in case of a catastrophic loss? | Reinsuance |
| Where are most reinsurance co's located? | Bermuda (only 2 in USA) |
| Who owns a mutual ins. co? | policy holders |
| Who owns a stock ins. co.? | stock holders |
| Which type of ins. co. carries more risk- mutual or stock co.? | stock (speculative risk) |
| What type of ins. policy only insures fellow members of an org.? | Reciprocal insurance |
| What types of policies can a reciprocal insurer provide? | property and casualty only |
| What is another term for a reciprocal insurer? | Assessment Organization |
| Who manages a reciprocal insurance organization? | Attorney In Fact |
| An attorney in fact defines what for a reciprocal insurance org? | 1. purpose 2. rules 3. membership 4. premiums |
| What type of ins. org. insures its members for life insurance only? | Fraternal |
| Why does the gov. offer ins. policies? | To cover risks that private ins. co.'s are not willing to cover |
| What are three types of perils covered by gov. insurance only? | 1. War 2. Nuclear 3. Flood 4. Crop |
Created by:
jkbick
Popular Insurance sets