Maryland Property And Casualty Study Guide Rated A+

Sharing {Ans: method of dealing with risk for a group of individual persons or businesses with similar exposure to share the losses incurred within that group}Risk Retention Groups (RRG) {Ans: a liability insurance company owned by its members. The members are exposed to similar liability risks by virtue of being in the same business or industry.}Agent/Insurer Relationship {Ans: if the agent is working within the conditions of his/her contract, the company is fully responsible}Conditional Contract {Ans: requires that certain conditions must be met by the policy owner and the company in order for the contract to be executed, and before each party fulfills its obligation. (E.g. insured must pay premium and provide proof of loss in order for insurer to cover the claim)}Insurance Transfers {Ans: the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals}law of agency {Ans: -Agent represents the insurer, not the insured -Any knowledge of the agent is presumed to be knowledge of the insurer -if the agent is working within the conditions of their contract, the insurer is fully responsible -when the insured submits