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Risk/Insurance Unit6
Arkansas Unit 6: Rights and Responsibilitiesof Insurance
Term | Definition |
---|---|
Better Business Bureau(BBB) | an alliance of U.S. and Canadian businesses that promotes consumer education and ethical business practices |
Captive agent | an agent who sells the products of only one insurance company |
Churning | the unethical business practice of persuading customers to buy unnecessary new policies for the sake of increased commission; also called twisting |
Credit score | a rating that summarizes an individual's credit history and likelihood of paying back loans |
Independent agent | an insurance agent who sells the products of different companies |
Insurance score | a rating that predicts the likelihood of an individual to file an insurance claim |
Misrepresentation | the unethical practice of making false claims about an insurance policy, or a competitor's policy, to make a sale |
Preapproval | the requirement that health care providers receive permission from the insurer before performing non-emergency surgery or unusual treatments |
Predatory pricing | the practice of undercutting competitors' prices to drive them out of business and take over their share of the market |
Small claim court | a special court designed to quickly resolve disputes over small amounts of money |