Insurance questions PART-4

Who is an Agent?

• An Agent is a person who is licensed by state to sell Insurance. The Agents serve as an intermediary between the insurance company and the insured.
• Agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork.
  • Captive Agent – Agent sell Insurance of a specific Company.
  • Independent Agent – Agent who works independently and sells Insurance of many companies.

Who is a Broker?

• An insurance broker is a specialist in insurance and risk management.Brokers act on behalf of their clients and provide advice in the interests of their clients.
• Insurance brokers can be best described as a kind of super-independent agent.

What is Annuity?

• A long-term contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement. 

What are Insurable and Uninsurable Risks?

• A risk that conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled is called insurable risk.
• In case of a scenario where the loss is too huge that no insurer would want to pay for it, the risk is said to be uninsurable.

What is AD&D in Insurance?

• AD&D in Insurance refers to Accidental Death and Dismemberment Insurance. 
• It is a policy that pays benefits to the beneficiary if the cause of death is an accident. This is a limited form of life insurance which is generally less expensive.