Exam 46: Insurance Law

In Cotton States Mutual Insurance Co. v. Brightman, 580 S.E. 2d 519 (2003), the Georgia Supreme Court:

Insurance __________ assist in state insurance regulation to prevent unfair insurer practices.

The expected loss arising from an event is the probability of the event multiplied times the magnitude of the loss.

List and explain the three main types of risks insurance may protect.

Subrogation may exist as a contract term in the insurance policy and may allow the insurance company the right to collect from the insured if a claim is paid and the insured obtained payment from the __________ who caused the loss.

In some cases, insurance regulators require that insurers contribute toward a __________, which provides coverage for those who may not be able to obtain insurance through the regular insurance markets.

The amount an insured will receive is controlled by the principle of __________.

Personal insurance represents policies related to life, health, accident but not disability insurance.

What may commercial general liability insurance policies not cover?

Insurance is a contractual relationship in which the insured transfers a specified risk to a third-party insurer that aggregates similar __________ into a common pool.

Congress decided to largely relinquish regulatory control to the states when it passed the __________ Act.

Insurance contracts require that the insured demonstrate they have a potential insurable interest.

The hit motion picture, The Big Short, told the remarkable story of how a few savvy investors were able to profit from the __________ collapse.

What may liability insurance not cover?

The expected loss arising from an event is the probability of the event __________ the magnitude of the loss.

The goal of the indemnity principle is to reimburse the insured for the losses sustained _________.

LAE stands for __________ and represents additional costs associated with the claims, such as legal defense costs.

Describe what insurance is, the parties involved, and the nature of what insurance covers.

Property insurance covers things like homeowners, renters, automobile, and boat insurance.

Insurers often have access to __________ data that allow them to determine the probability of an event occurring.