An agency bill process in which the producer is usually not required to pay the insurer until the premium is collected from the policyholder is known as

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An agency bill process in which the producer is usually not required to pay the insurer until the premium is collected from the policyholder is known as

A.The statement basis.
B.The account current basis.
C.The item basis.
D.The direct bill basis.

Answer: C. An agency bill process in which the producer is usually not required to pay the insurer until the premium is collected from the policyholder is known as the item basis.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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The voluntary relinquishment of a legal right is called
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