ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation.

Detailed explanation-2: -Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.

Detailed explanation-3: -The consideration clause spells out exactly how much premium payments are and when they are due. The legal consideration for a life policy consists of the application and payment of the initial premium. It may also list the effective date.

Detailed explanation-4: -As a mutual owner of the company, you will share in its success. If the company meets or exceeds its financial goals for the year, it will often return a portion of its profits back to its policyholders in the form of dividends, similar to how a stock company pays dividends to its shareholders.

Detailed explanation-5: -An insurance company entitled to transact business in California is called a(n) Admitted carrier. An individual who transacts life, disability, or life and accident and health insurance on behalf of an insurer is called a(n) Life agent.