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General rules
General rules,producers, cotracts
| Term | Definition |
|---|---|
| Agency agreement /contract | The relationship between the insurer and the producer , |
| Insurance agent | Is designated by insurance company to sell the products by convincing people to buy companies policies |
| Insurance broker | Works independently and matches the needs of a client with the products available |
| Fiduciary | A person who holds a position of public trust and confidence |
| Captive insurance company | A company who's business is primarily supplied by one interest or group of related interests |
| Law of agency | An agents actions are regarded as the same as if the company itself preformed the action |
| Express authority | When authority is expressly given to the producer either orally or in writing . Ability to sell insurance |
| Implied authority | Gives agents unwritten authority to perform incidental acts |
| Apparent authority | Neither implied or expressed but exists because the agent has used it in the past |
| Insurance contract | A binding agreement between two or more parties legally enforceable to do certain things |
| Offer and acceptance | The applicant submits the application along with the premium , during the acceptance period the insu9issues the policy |
| Consideration | The applicants consideration is the premium and the insurers consideration is to identify the insured in the event of loss |
| Competent parties | A party to the contract,who have legal capacity to the contract |
| Legal purpose | The insurance policy owner must have insurable interest in the property |
| Mutual agreement | Any change the insurer makes must be agreed to in writing by the insured |
| Twoparty contract | Usually an insurance contract is a 2 party contract. The insurer and the insured |
| Third party contract | When a bank or mortgagee is attached to contract |
| Contract of adhession | Only 1 party to a contract (the insurer) prepares the contract and submits it to the insured for acceptance |
| Aleatory contract | Unequal amounts of money are exchanged |
| Unilateral contract | Only one party is legally bound to perform a ny duties once premium is paid |
| Ambiguity in a contract | Any doubt found in a insurance policy will be found in favor of the party that did not draw it uo |
| Utmost good faith | It is understood that both parties barter in utmost good faith in forming the contract |
| Representations | Statements made by one party believed to be true |
| Misrepresentation | Can void a contract |
| Warranties | Statements made by the applicant that are guaranteed to be true |
| Concealment | Is the willful failure to disclose facts that are material to the risk |
| Fraud | Deceit, intentional misrepresentation |
| Redlining | The refusal of an insurer to underwrite an insurance coverage in certain areas |
| Boycotting | To stop buying or using the goods of a certain company as a protest |
| Rebating | Returning a portion of the premium in order to place business |
| Estoppel | The concept that once a fact has been admitted to be true by a previous action it can no longer be denied to be true |
| Waiver | The voluntary abandonment of a known or legal right |
Created by:
Jenny10795
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