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:

Debate

A structured discussion or argument where opposing viewpoints are presented and defended with evidence and reasoning.

Overview

A summary or brief presentation of the main points or features of a subject or written work.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound.

Frequency Theory

A theory in the study of hearing which suggests that the perception of pitch depends on the rate at which auditory nerve fibers are stimulated by the sound wave.