Worker's Compensation Insurance

31 Lapse In property and casualty insurance, a lapse is the termination of a policy because of a failure to pay premium when due. Liability Insurance Coverage for a policyholder’s legal liability resulting from injuries to other persons or property damage. License A certificate of authority issued by the CDI to an insurer, agent, broker, or broker-agent to transact insurance business. Limits of Insurance The maximum amount of benefits the insurance company agrees to pay in the event of a loss. Managing General Agent (MGA) An agent contractually authorized by an insurance company to manage all or part of the insurer’s business activities. An MGA can manage the marketing, underwriting, policy issuance, premium collection, appointing and supervision of other agents, claims payments, and reinsurance negotiations of an insurance company. Material Misrepresentation A factual falsification made in such a manner that the insurance company would have refused to insure the risk if the truth had been known at policy issuance. Misquote An incorrect estimate of an insurance premium. Nonpayment of Premium Failure by the policyholder to pay the premium on a policy or pay the installment premium payments due on a policy.