In Property/casualty Insurance, an Agent Who Has This Authority Can

question 45

Multiple Choice

In property/casualty insurance, an agent who has this authority can create a contract between the insurance company and the insured.Two factors influence the granting of such authority.First, some companies prefer to have underwriting decisions made by specialists in the underwriting department, so they do not this binding authority to the agent.Second, some policies are cancelable; others are not.The underwriting errors of an agent with this authority may be corrected by cancellation if the policy is cancelable.Identify this authority.

• A)Waiver authority
• B)Binding authority
• C)Facultative authority
• D)Estoppel authority
• E)Duress authority

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Definitions:

Compliment Close

A sales technique where positive feedback or compliments are used to create a good rapport with the potential buyer, often leading to a sale.

Ad Space

Areas designated for advertisements in various mediums, such as newspapers, magazines, websites, or outdoor locations.

Minor-Points Close

A sales technique where the focus is on the lesser details or benefits to persuade the customer.

Alternate-Choice Close

Alternate-Choice Close is a selling technique where the salesperson presents the prospect with two choices, both leading to a sale, giving the illusion of control.