Insurance 101 Notes PDF

Insurance 101 Insurer; main company Insured; person who bought the insurance, basically called “the customer”. Named insured; the person that bought the insurance that's covered by the company aka the “insurer”. In other words the owner of the property. First Named Insured; the business owner, this...

Insurance 101 Insurer; main company Insured; person who bought the insurance, basically called “the customer”. Named insured; the person that bought the insurance that's covered by the company aka the “insurer”. In other words the owner of the property. First Named Insured; the business owner, this person has all the rights and responsibilities. Additional Insured; person added by endorsement for their interest in the policy, could be a mortgagee or lienholder. Can hold properties for primary. a Principle Of Indemnity; if something goes wrong the insurance will cover enough to get you back to where you were before that loss. Making sure you have everything fixed as long as making sure you're not getting free money out of it. (don't take advantage of the payout) yl Underwriting; makes sure the insurer can afford to pay it off (fix it). Insurable Interest; this principle ensures that insurance is used as a tool for protection, not profit or gambling. Accident; unplanned car accident which causes damages to a vehicle ka or any property. Occurrence; something exposed to humidity for a long period of time and it ends up growing mold which means it's not good anymore so it's a loss. Cancellation; didn't pay your bill in time causing it to be discontinued Non-renewal; too many chances and they decided to not renew your policy (plan) anymore. Binder; temporary insurance to prove it has insurance, until the real one is sent out. Certificate of Insurance; basically shows proof that a vehicle or property is covered by insurance. All info of insurance included on the page. Endorsement; used to update or modify terms (update) of an existing policy, allowing the insurance coverage to better meet the needs of the policyholder. Arbitration; (3rd party) hears both sides of the story and decides on whether the claim gets paid and how much it gets paid. Appraisal; who decides the amount of vehicle The commissioner of insurance; appointed by the governor. Public official that regulates the insurance industry in a state or territory. Examination of records; Look thru the books and records of each insurer (company) operating in texas. To make sure everythings getting done correctly. a Investigation/Notice of hearing; (once every 5 years) investigating a person that's talking bad about the insurer and is involved with the insurer while being an employee. Determining whether that person is engaged in an unfair method or not doing bad yl to the company. Cease and Desist Orders; A document issued by a government agency ordering an individual or organization to stop engaging in specific activity. Serves as a warning!!!! To prevent things from getting worse. Penalties; ADMINISTRATIVE PENALTY a person or organization ka who ignores the warning given to them (Cease and Desist Orders) may be charged up to 1k for each violation if not stopped or 5k for all the violations. Civil penalty for violation of cease and desist order; A person who is found by court that didn't follow the warning that was given to them. The state may recover the penalty in civil action. Reinsurance reserved; A fund set up by the insurer for the protection of its policyholders. Domicile of Insurer; which state’s or country’s laws apply to the company and is crucial in regulatory, tax, and legal contexts. Depending on where they are located. Domestic; A insurance company that has its home office in the state it operates in. Foreign; A insurance company that's in another state that's not texas. Alien; A insurance company that has its home office in another country not the United States Of America. Admitted Insurer; received permission from the commissioner of insurance and has been given official permission to sell insurance policies in texas. Certificate of Authority; a license saying that they can sell insurance. Sanctions and Penalties; if they don't meet the requirements or break the requirements, the commission may take away there permission to work. a Non-Admitted Insurer; AN issuer that isn't allowed to sell insurance policies in texas. Surplus Lines; it allows businesses and individuals to obtain insurance for unusual or high-risk situations where traditional yl insurers might not offer policies. Texas Property & Casualty Guaranty Association; The association is designed to ensure that consumers who hold property and casualty insurance policies, such as homeowners, renters, and auto insurance, are not left without coverage or financial compensation if their insurer fails. ka