Insurance producer
An individual or an entity authorized in writing by a lawfully qualified insurance compnay to transact, negotiate or effect contracts
... [Show More] of insurance of behalf of that insurance company.
Resident Producer
Any person that lives in kansas and is licensed to transact insurance business for at least one insurer.
A Non-resident producer
A producer that lives in some other state;they are licensed in their owen home stae and has written permission from the kansas insurance commisioner to sell in our state.
Commissioner
The insurance induster is regulated by the kansas insurance commissioner, who is elected by the people to a 4 year term in kansas
Purpose of the commissioner
The insurance commissioner administers or regulates the laws that have been passed by the legislature. The commissioner does not make or change insurance laws, but instead has the power to make reasonable rules and regulations to ensure that the laws are beng followed.
Redlining
the practice of not seeling insurance to those who live in the low-income, high-crime areas of town and is considered to be a form of unfair discrimination.
Unfair Trade Practices Act
a state law that details illegal actions performed by producers. if a producer is found guilty of any of the following actions, penalties could include licensure suspension or revocation, fines, cease and desist orders and redress of injury.
Fair Credit Reporting Act
The kansas property and casualty guarantee association provide payment for covered claims under certain insurance plicies in the event of insolvency of the insurer. All insurance companies holding certificates of authority to conduct business in kansas must be members and participate in this program through assessments. Each member is assessed a pro-rata share based on net written premiums from the previous year. the maximum assessment is 2% of net written premiums.
Peril
a specific "cause of loss"
Direct loss
The cost to repair the damaged property. The physical loss to the property, auto, etc. cause by the peril itself. The direct loss is visible physical loss.
Indirect/consequential loss
the financial loss suffered because of the "loss of use" of the covered property. the loss incurred because of the "loss of use" of the covered property. such as hotel expenses or rental care expenses.
Exposure
The amount of money the insured or compnay could conceivable incur
Catastrophic
damage, flood loss and nuclear damage are not covered by standard insurance policies because of the hgh exposure to loss if the loss were to occur
Binder
Provides immediate, temporary evidence of coverage until the policy is issured
Producer responsibility
Producers may be obligated to reimburse their company for their actions.
Law of large numbers
The larger the number, the more accurate the statistic. The data collected is separated into homogenous exposure units to get the most accurate prediction possible.
Deductible
represents the out of pocket exposure to the insured in the event of a claim. Helps to reduce claims frequency and thereby reduces the cost of the insurance policy
Acual cash value (ACV)
The replacement cost value of property less depreciation, obsolescence and deterioration.
Replacement cost value (RCV)
Calculation of loss by figuring the cost to repair or replace at todays labor and material costs.
Market value
the amount to buy or sell property
stated value
pays the cost of repair up to the stated value, whichever is less, at the time that a claim is filed.
Salvage Value
Amount retained by the resell of damaged property. helps to reduce the insurers companys cost
Domestic insurers
Are strucured under the laws of this state
Foreign insurers
Are structured under the laws of another state
Admitted compnaies licensed
Authorized to do business in this state. offer mainstream coverages:such as, homeowners, auto, and crop.
Non-admitted companies not licensed
Not authorized to do business in this state. offer coverage that is unusual or rare. Such as race care coverage, insurance for a body part. You must be licensed as an excess lines broker to have the authority to conduct business with compnies in this class.
Replace Value
The actual cost to repair or replace at todays labor and material cost without allownaces for deterioration, obsolescence and depreciation.
When a new homeowners or personal auto policy is issued, what is the usual length of time that a company can cancel a policy for any reason?
60 days
Who can cancel a binder?
The insurer
When does the policy period begin?
When the agent binds the coverage
Twisting
Replacing an existing policy to the detriment of the insured
When can an agent use statistics in advertising during a sales presentation?
when approved by their company
if you are denied insurance because of your driving record, what law requires the insurance company to notify you of the reasons for denial?
The unfair trade practices act.
When an isurer whats to advertise in this state, what must they submit to the kansas insurance department?
Copies of advertisements.
What information must be included in agents' advertisements?
The agents full name and number
What is the maximum fine for an unintentional violation after an agent has been found guilty by the insurance commissioner, and placed under a cease and desist order?
$1000
Reimbursement contract
An insurance contract that indemnifies the insured to the actual amount of loss, or for a state amount [Show Less]