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FFL Life Course Basic Principles of Insurance

Law5 CardsCreated 8 months ago

The Fair Credit Reporting Act (FCRA) is a federal law that ensures individuals are informed when their personal information is being collected by inspection companies. It promotes transparency by requiring insurers to disclose data collection practices and sources.

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What is the name of the law that requires insurers to disclose gathering practices and where the information was obtained?

Fair Credit Reporting Act

~ A federal law requiring an individual to be informed if that individual is being investigated by an inspection company

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Key Terms

Term
Definition

What is the name of the law that requires insurers to disclose gathering practices and where the information was obtained?

Fair Credit Reporting Act

~ A federal law requiring an individual to be informed if tha...

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policy holders is called:

Reserves

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Treaty

~Under treaty reinsurance, each party automatically accepts specific percentages...

What year was the McCarran-Ferguson Act enacted?

1945
~M-F Act was enacted in 1945 and made it clear that continued regulation of insurance by the states in the public’s best interest

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a:

Risk retention group

Related Flashcard Decks

TermDefinition

What is the name of the law that requires insurers to disclose gathering practices and where the information was obtained?

Fair Credit Reporting Act

~ A federal law requiring an individual to be informed if that individual is being investigated by an inspection company

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policy holders is called:

Reserves

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Treaty

~Under treaty reinsurance, each party automatically accepts specific percentages of the insurer’s business

What year was the McCarran-Ferguson Act enacted?

1945
~M-F Act was enacted in 1945 and made it clear that continued regulation of insurance by the states in the public’s best interest

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a:

Risk retention group