Questions and Answers
Who is considered the legal representative of an insurance company?
What is required for a policyowner to have an insurable interest?
What does the term 'premium' refer to in insurance?
Which statement correctly describes an insurance policy?
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In an insurance context, what does the term 'consent' mean?
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Study Notes
Insurance Terminology
- Agent/Producer: Represents an insurance company; includes agents and brokers. Agents act on behalf of the insurer.
- Applicant or Proposed Insured: The individual seeking to obtain insurance coverage.
- Consent: Refers to the permission granted for specific actions or agreements.
- Insurable Interest: A requirement where the policyowner must have a potential financial loss related to the insured item or individual in case of a covered event.
- Insurance Policy: A legal contract detailing the agreement between the policyowner and the insurer, outlining the terms under which compensation is provided for losses due to specified events.
- Insured: The individual or entity that is covered by the insurance policy; this may differ from the policyowner.
- Insurer (Principal): The organization or company that issues the insurance policy and agrees to indemnify the insured.
- Policyowner: The individual who holds the insurance policy and possesses the rights to make changes or claim benefits outlined within the policy.
- Premium: The amount of money that the policyowner pays to the insurer in exchange for coverage under the insurance policy.
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Description
Test your understanding of key insurance concepts with this quiz. Covering terms such as agent, applicant, consent, insurable interest, and insurance policy, this quiz will enhance your knowledge of the insurance industry. Perfect for students and professionals alike.
