[h] CPCU 410 – Module 6
[q] Insurance producer
[a] A person who places insurance business with customers. Can be an agent or a broker.
[q] General agent
[a] An individual that transacts all of an insurer’s business of a particular kind or location. Has the broadest powers of all insurance producers.
[q] Special agent
[a] A person employed for a specific transaction or for a particular class of work.
[q] Soliciting agent
[a] A producer whose authority is limited to:
Soliciting insurance applications.
Forwarding applications to the insurer.
Performing other incidental acts.
[a] A person that represents the insurance customer. Have no authority to act on behalf of the insurer.
[q] Types of producer authority
[q] Actual authority
[a] The authority that the insurer intentionally gives to the producer.
[q] Implied authority
[a] A type of actual authority. Represents authority implicitly granted to an agent based on common practices and the conduct of the principal.
[q] Apparent authority
[a] A third party’s reasonable belief that an agent has authority to act on behalf of a principal.
[q] Employment at will
[a] A contractual relationship in which an employee can be dismissed by an employer for any reason, and without warning, as long as the reason is not illegal.
[q] Wrongful discharge
[a] A situation in which an employee’s contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law.
[q] Public policy exception
[a] An exception to the Employment-at-Will doctrine. Indicates that an employee cannot be fired for reasons that violate public policy. The employee can sue for wrongful discharge.
[q] Implied-contract exception
[a] An exception to the Employment-at-Will doctrine. Indicates that an employer’s actions may imply that a contract exists between the employer and the employee, even if there isn’t an actual written contract. Allows for a breach of contract suit.
[q] Covenant-of-good-faith exception
[a] An exception to the Employment-at-Will doctrine. Indicates that an element of good faith exists in the employer-employee relationship.
[q] Statutory exception
[a] An exception to the Employment-at-Will doctrine. Prohibits companies from firing employees for stated reasons.
[q] Antidiscrimination laws
[a] Laws prohibiting employers from treating employees differently based solely on age, sex, race, color, religion, disability, or national origin.
[q] Age Discrimination Employment Act
[a] A law protecting workers from age discrimination. The law relates to hiring, pay, conditions, terms, privileges, and termination of employment. Under the law, employers cannot discriminate against employees age 40 or older.
[q] Minimum number of employees for Age Discrimination Employment Act
[a] The Act applies if an employer has 20 or more employees.
[q] Bona fide occupational qualification
[a] The minimum qualification that an employee needs in order to perform job duties.
[q] Situations in which mandatory retirement age is permitted
Public safety officers under a mandatory retirement age of 55 or older.
High-ranking employees after reaching age 65 and entitled to a pension.
[q] Older Workers Benefit Protection Act
[a] A law that amends the Age Discrimination Employment Act. The law permits employers to reduce benefits to older employees when the reduction is justified based on cost considerations.
[q] Civil Rights Act of 1866
[a] The first law prohibiting discriminatory employment practices. Proclaimed all persons born in the U.S. are citizens of the U.S. Guaranteed all citizens certain rights, regardless of race or color.
[q] Civil Rights Act of 1871
[a] A law that protects harassed citizens by prosecuting those instigating rights violations.
[q] Civil Rights Act of 1964
[a] A law that improved voting rights, called for school desegregation, and prohibited inequalities in public accommodations. Also, the law prohibits employers from discriminating against employees based on certain criteria.
[q] Disparate treatment theory
[a] A legal basis for an employment discrimination complaint asserting individuals are treated differently because of race, sex, color, or religion.
[q] Disparate impact theory
[a] A legal basis for an employment discrimination complaint asserting that a neutral employment practice excludes a disproportionate number of a protected class.
[q] Quid pro quo sexual harassment
[a] A legal basis for an employment discrimination complaint asserting that an employer demanded sexual favors in exchange for continued employment.
[q] Hostile work environment
[a] A legal basis for an employment discrimination complaint asserting severe harassment.
[q] Civil Rights Act of 1991
[a] A civil rights law that made modifications to several previous laws. Amended the Americans with Disabilities Act to allow plaintiffs to recover damages in suits alleging intentional discrimination.
[q] Executive Order 11246
[a] A law that bans job discrimination based on sex, race, color, or religion. Applies to federal contractors doing more than $10,000 of business with the government.
[q] Equal Pay Act
[a] A law that prohibits employers from paying lower wages to employees of one sex than it pays to those of the other sex.
[q] Americans with Disabilities Act
[a] A law that prohibits discrimination against qualified individuals with disabilities.
[q] Consumer Credit Protection Act
[a] A law that prohibits job termination resulting from an employee having wages garnished.
[q] Jury Systems Improvement Act
[a] A law that prohibits termination of employees who miss work because of jury duty.
[q] Uniformed Services Employment and Reemployment Rights Act
[a] A law that requires an employer to rehire any persons serving in the military upon return from active duty.
[q] Occupational Safety and Health Act of 1970
[a] A law that requires employers to provide a workplace that is free from recognized hazards and also mandates how employees must perform their jobs safely.
[q] Fair Labor Standards Act (FLSA)
[a] A law that establishes standards in the areas of minimum wage, overtime, child labor, and equal pay. Differentiates between exempt and non-exempt employees regarding overtime.
[q] Exempt employee
[a] A salaried employee that does not receive overtime.
[q] Nonexempt employee
[a] An hourly employee that receives overtime.
[q] Family Medical Leave Act
[a] A law that requires employers to provide 12 weeks of unpaid leave for certain events, such as birth, adoption, or serious illness. Only applicable to employers having 50 or more employees.
[q] Employee Retirement Income Security Act
[a] A law that protects employees by safeguarding employee pension plans.
[q] Consolidated Omnibus Budget Reconciliation Act
[a] A law that provides continuing health insurance coverage for 18 months after specified events, such as termination of employment.
[q] Drug-Free Workplace Act
[a] A law that requires federal contractors to establish drug prevention programs.
[q] Employee Polygraph Protection Act
[a] A law that prohibits most private-sector employers from requesting lie detector tests for employees or applicants.
[q] Health Insurance Portability and Accountability Act
[a] A law enacted to improve the portability of health insurance after a job change. In addition, the law impacts privacy of medical records.