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causality exam
Reinstatement
what is reinstatement
allows policyholders to reactivate their policy without having to purchase a new one
assumed name
any other name your business uses other than legal name
solvency in insurance
means the company can pay policyholders by having enough assets to cover claims.
what is a controlled business in insurance
when an insurance company has a financial stake in an agency, giving it control over operations. Example: State Farm owning an insurance agency.
what is illegal inducement in insurance
Offering incentives to buy insurance is against rules. Example: Giving cash to buy a policy is illegal.
what is the law of large numbers in insurance
The Law of Large Numbers in insurance says that as more exposure units are involved, actual results will be closer to expected results, aiding insurers in predicting losses accurately
Example of Law of Large Numbers in Insurance:
When an insurance company insures a large number of homeowners, the actual number of claims made by policyholders will closely align with the expected number of claims based on historical data.
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how to define a reciprocal insurer
Example of Reciprocal Insurer:
One example of a reciprocal insurer is Lloyd's of London, where individual members, known as "Names," come together to provide insurance coverage for various risks.
A reciprocal insurer is a type of insurance organization where policyholders mutually insure one another, each acting as both insurer and insured. Members contribute to a common fund to cover potential losses.
what is a risk retention group in insurnace
A risk retention group in insurance is a type of self-insurance organization formed by members with similar risks to provide liability coverage. They are regulated under the Liability Risk Retention Act of 1986.
what is lloyds associations
unilateral contract
only one party, the insurnace company makes any legally enforceable promises
conditional contract
if.. then kind of contract
errors and omissions
a policy that protects the agent if they make an error or omit something and they are sued
