When an insured makes a truthful statements on the application for the insurance and pays the require premium it is known as what?

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as what? Consideration. And insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable.

When must a policy summary be provided to an applicant for insurance?

The insurer must provide a buyer’s guide along with a policy summary to any prospective purchaser before accepting the applicant’s initial premium or upon the applicant’s request. You just studied 11 terms!

What must an insurer obtain in order to transact insurance within a given state?

Insurers who meet the state’s financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer. Events or conditions that increase the chances of an insured loss occurring are referred to as… Hazards.

What is the correct insurance term for a statement that is guaranteed to be true?

A warranty in insurance is a statement guaranteed to be true. When an applicant is applying for an insurance contract, the statements he or she makes are generally not warranties, but representations.

Which of the following is a statement that is guaranteed to be true and if untrue may reach an insurance contract?

An insured wants to transfer his personal insurance policy to a friend. Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract? Warranty. in insurance is a statement guaranteed to be true.

Is a warranty guaranteed to be true?

Guarantee. A warranty is a guarantee of the integrity of a product and of the maker’s responsibility for it. In a sense, guarantee is the more general term and warranty is the more specific (that is, written and legal) term.

What is a misleading insurance advertisement?

An advertisement will be labeled as misleading if it omits to disclose or discloses insufficiently, important exclusions, limitations and conditions of the policy. However, an insurance agent will not have to take written approval of the company if the advertisements are developed by the insurer and provided to them.

Who is responsible for the content of life insurance advertising?

Who is responsible for the contents of life insurance advertising? All advertisements are the responsibility of the insurer. 180 days. If a producer dies or is rendered disabled, a family member or an associate can enter in an agreement with another producer to continue the business.

How long must an insurer retain an advertisement?

three years

What method do insurers use to protect themselves against catastrophic losses quizlet?

Reinsurance System

What are marketing arrangements used by insurers?

There are mainly following types of marketing systems used by insurers: The independent agency system. The exclusive agency system. The direct mail system.

What is insurance money called?

An insurance premium is the amount of money an individual or business must pay for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance.

How do insurance companies make money?

Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs.

What is the purpose for insurance?

Purpose of insurance Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.

Why is insurance an important part of your financial plan?

Insurance is an important part of financial planning because it protects you and your loved ones from the costs associated with accidents, disability, illness and death. When choosing an insurance plan to sign up for, you must consider your age, family and economic situation.