A conditional binding receipt is a document that an insurance company issues to an insurance agent or broker that states that the insurance company has accepted the risk and will provide coverage for the policyholder, subject to the terms and conditions specified in the receipt. The receipt is also sometimes referred to as a binder. … Read more
A composite rate is an insurance premium that is calculated by combining the rates of multiple insurance companies. The resulting rate is typically lower than the rates of any of the individual companies. What is the difference between labor cost and labor rate? Labor cost is the total amount that an employer pays to its … Read more
A corridor deductible is a type of deductible that is used in some health insurance plans. It works by setting a deductible amount that must be met before the insurance coverage will begin. For example, if the corridor deductible is $1,000, the insured will need to pay the first $1,000 of their medical expenses before … Read more
An unearned premium is the portion of an insurance policy’s premium that has been paid by the policyholder, but for which coverage has not yet been provided. This occurs when a policy is cancelled before its expiration date. The unearned premium is refunded to the policyholder, minus any fees or penalties that may be assessed. … Read more
A guaranteed renewable policy is an insurance policy that cannot be canceled by the insurer, as long as the policyholder continues to pay the premium. This type of policy is often used for health insurance or life insurance. What is a guaranteed renewal endorsement on an auto policy? A guaranteed renewal endorsement is an auto … Read more
Actual authority is the legal power or right that a person or organization has to enter into contracts or agreements on behalf of another person or organization. This authority can be express or implied, and it can be granted in writing or verbally. What are the 4 types of agent authority? There are four types … Read more
