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Risk/Insurance Unit1
Arkansas Unit 1: Insurance Fundamentals
Term | Definition |
---|---|
Agent | someone who legally represents the insurer, has the authority to act on the insurer's behalf, and can bind the principal by expressed powers, by implied powers, and by apparent authority |
Broker | someone who legally represents the insured, soliciting or accepting applictions for insurance that is not in force until the company accepts the business |
Claim | a request to cover losses from a specific event |
Claims adjuster | person who settles claims; an agent, company adjuster, indepentent adjuster, adjustment bureau, or public adjuster |
Coverage | protection against a specific kind of loss |
Deductible | the amount an insured pays on a claim before the insurer pays the remainder |
Insurability | an insurer's determination that an individual meets the company's criteria to be insured |
Insurance | financial protection purchased to compensate for loss |
Insurance Commission | meets periodically to discuss industry problems that might require legislation or regulation |
Insurance policy | a contract written to protect individuals named in the policy against specific future losses |
Insured | an individual usually but not always the buyer, covered by an insurance policy |
Insurer | the company or agency that writes an insurance policy |
Liability | legal responsibility |
Premium | payment made by the insured to the insurer |
Products options | special features added to a basic insurance policy |
Risk | a situation in which some kind of loss is possible |
Underwriting | the process of assessing applicants for insurance to determine whether they are a good risk |