Terms to know

May or may not be the insured person, but the one with the rights to make changes, etc.

Person or entity to which the benefits are paid

The frequency of a payment; monthly, quarterly, semi-annually or annually.

Preferred, Standard & Substandard

Cause of Loss

Statistical chances of dying by using specific populations, diseases, ages, etc.

Physical, Moral, Morale and Legal

The larger the pool of information gathered, the more reliable it becomes.

Degree to which a person or property is at risk.

• Participating (Mutual) or non-participating (Stock) in paying dividends to
• an insured.

Accidental, creates a financial hardship

Tendency of those who need insurance to buy it.

Transfer or pool the risk.

Deliberately providing false information for gain/profit.

Hiding material information.

Expressed or Implied.

Important facts to the contract. Representation - Oral or written expression of information.

False information about a contract

Expressed and Implied

Execution, negotiation, Solicitation of the contract, or any other transaction resulting in these

Must be in a prominent place in your office.

• Available in 30 days upon request; all policy information must be
• accessible in 30 days notice and on file for 2 years.

Must be printed on ALL material to the public; fines are for each offense and are $200 1st, $500 2nd, $1000 ea offense after that.

Must be disclosed.

Every licensee must have one on file with the DOI to be actively licensed.

Commissioner doesn’t create the code, only determines how to implement it, etc.

1st attempt at restoring an insurance company that is close to insolvency

List of Eligible Surplus Lines Insurers

Unbroken chain of events that results in damage or injury due to negligence

Broadening coverage without any extra charge during a policy period

Reduction of the quantity, quality or value of something do to a covered loss / Consequential losses as a result of the covered loss.

Incurred losses + loss adjusted expenses and earned premium = Loss Ratio

Cancellation made by an insured prior to it’s expiration date and surcharged by the Company.

Cancellation made prior to the expiration date and @OT surcharged by the Company.

Cancellation of a policy back to its inception date with all premiums 100% refunded.

Cease coverage/ Company not continue beyond expiration date / Cancels due to non-pay.

Money the company owes an insured for the unused portion of time already paid for.

Money owed to the company for a coverage period provided but not yet paid for.

Just because I expect to own something in the future will not allow me to buy coverage for it now.