Also known as the principal, they are responsible for all acts of a producer when they are within the scope of their authority

This protects consumer privacy, while ensuring data collected is confidential, accurate, relevant and used for a proper and specific purpose. It also protects the public from overly intrusive information collection practices.

This is a condition where the chance, likelihood, probability or potential for a loss exists; Uncertainty concerning a loss.

This is when investments of a large number of people may be pooled by use of a corporation or partnership

This is when the insured is restored to the same financial or economic condition that existed prior to the loss; Insured should not profit from an insurance transaction.

This defines the relationship between two or more parties where one party, the agent/producer, acts on behalf of the other party, known as the principal or insurer.

This imposes record keeping and government reporting requirements on banks, financial institutions and non-financial businesses for specific financial transactions and customer financial records (a part of the Bank Secrecy Act).

This is a situation where there is a chance or possibility for loss, no loss or gain (i.e., gambling)

This is moving the risk from one party to another, such as from a consumer to an insurance company; Moving the uncertainty of loss via a contract

This is the ability of an applicant to meet an insurer’s underwriting requirements.

This is written into the producer’s agency contract. It details specific activity regarding the producer’s ability to transact business on behalf of the principal.

In 2001, the NAIC adopted model legislation for the prevention and enforcement of insurance fraud. Subsequently, each of the states enacted its own version of this.

This is the cause of a loss

This is the elimination of risk; not participating in the activity that gives rise to the chance of loss

This is the process of selecting, classifying, and rating a risk for the purpose of issuing insurance coverage.

This is not specifically stated in the contract, but is necessary, reasonable, and usual for the producer to perform stated duties.

This was enacted in direct response to the terrorist attacks on New York City and Washington, D.C. on September 11, 2001. Congress provided temporary financial compensation to insured parties during its crisis of recovery from the terrorist attacks.

This is a specific condition that increases the probability, likelihood, or severity of a loss from a peril. There are three types: Physical, Moral, and Morale.

This is minimizing the chance of loss, but not preventing the risk. For example, sprinkler systems, burglar alarms, pollution controls and safety guards on machinery.

This is any event, past or present, that may cause loss, or damage, or create legal liability on the part of an insured.

This is is created when the producer exceeds the authority expressed in the agency contract. It is authority the public (or a third-party) is falsely led to believe the agent has and the principal does nothing to counter the public impression that such authority exists.

This act repealed parts of the Glass-Steagall Act of 1933 to allow the merger of banks, securities companies, and insurance companies. It also established the Financial Privacy Rule and Safeguards Rule for the protection of consumers’ privacy.

This is an imbalance created when risks that are more prone to losses than the average (standard) risk are the only risks seeking insurance within a specific marketplace.

This is assuming the responsibility for loss;
Self insure the entire loss or a portion of the loss.

This is what happens when the number of units in a group increases, the more likely it is to predict a particular outcome.