Insurance Concepts and Terms

Front

What is subrogation in the context of insurance?

Back

The legal right held by insurers to pursue a third party that caused an insurance loss to the insured

Front

Which of the following is an example of a loss settlement provision?

Back

Actual Cash Value

Front

What does the Terrorism Risk Insurance Act (TRIA) provide?

Back

A government backstop for insurance claims related to acts of terrorism

Front

How are insurance companies classified based on their origin of incorporation?

Back

Domestic, Foreign, and Alien

Front

What is the difference between a stock insurance company and a mutual insurance company?

Back

Stock insurance companies are owned by shareholders, while mutual insurance companies are owned by policyholders

Front

What is the primary responsibility of an insurance agent?

Back

Selling insurance products and assisting consumers with applications and enrollments

Front

Which of the following is a reason for license revocation for an insurance agent?

Back

Engaging in fraudulent practices

Front

What is the purpose of a temporary insurance license?

Back

To continue business operations while waiting for a permanent license

Front

What does rebating in the insurance industry involve?

Back

Offering something of value to induce the purchase or renewal of an insurance policy

Front

Which of the following is an example of unfair discrimination in insurance?

Back

Charging higher premiums to policyholders of a certain ethnicity without justification