Personal Lines-California Insurance Question 100% Answered

Moral Hazard {Ans: Dishonest, ethics/habits/fraud, liar, exaggerating a loss, felony, alcoholism, drug addiction, judgements}Demutualization {Ans: When a mutual insurer becomes a stock insurer}Tort Law {Ans: Establishes who did the harm and therefore obligated to pay. Intentional (deliberate act), unintentional (negligence), strict/absolute liability (dangerous activities)}Property insurance {Ans: Covers direct and indirect losses- referred to as first party insurance/coverage}Principle of indemnity {Ans: The basic principle behind Insurance. To restore someone to the same financial condition the occupied prior to the loss with no intent of loss or gain (to make while). The intent is to cover the amount of the actual loss only. An insured cannot collect more than 100% of actual loss. An insured can only be indemnified to the extent of their insurable interest (ownership) in property.}Foreign {Ans: Organized under the laws of another state}surplus lines broker {Ans: licensed to place business with a nonadmitted insurer}Who appoints a solicitor {Ans: Agent or broker (with a permanent license)}Department of Insurance/California Department of Insurance {Ans: DOI and CDI}unilateral contract {Ans: Only one side (insurer) is legally bound to obligations. Exchange of premium for a promise}Insurance adjuster {Ans: Settles claims on behalf