Accident And Health Insurance Agent Practice Exam|140 QUESTIONS AND ANSWERS ALL CORRECT
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Course
NURS
Institution
NURS
Group Insurance Correct Answer: - the employer is the owner and receives the
master contract
- the employees are certificate holders which
outlines the details of it
- underwriting is much more liberal because its a
large group and probably wont have adverse
selection
- if you want t...
Accident and Health Insurance Agent Practice Exam|
140 QUESTIONS AND ANSWERS ALL CORRECT
Group Insurance Correct Answer: - the employer is the owner and receives the
master contract
- the employees are certificate holders which
outlines the details of it
- underwriting is much more liberal because its a
large group and probably wont have adverse
selection
- if you want to get in at another time, employee
has to show insurability
What do you need to get Social Secutiry Correct Answer: - You have to work for 40 qtrs or 10
years
Insurance Definition Correct Answer: - Transfer of risk from 1 party to another
- To provide funds for medical expenses due to
sickness or injury and to cover loss of income
during a disability
Indemnity Correct Answer: - To restore or make whole again
- To bring back to the same condition they had
prior to loss
Risk Correct Answer: - the uncertainty or chance of loss
Mortality Correct Answer: - The number of deaths
- helps determing premium
Morbidity Correct Answer: -The number of disabled due to accident or
sickness
Pure Risk Correct Answer: - Chance of loss without any chance of gain
- only pure risk is insurable
Speculative Risk Correct Answer: - Chance of loss or gain
What kind of Risks are insurable Correct Answer: - loss must be accidental
- loss must be definite (or measurable)
- must not be catastrophic
- must be great enough to create economic
hardship
- premiums must be reasonable
, Retention Correct Answer: -The personal acceptance of the loss
Peril Correct Answer: - The cause or source of a loss
Hazard Correct Answer: - increases the chance of a loss
What are the 3 types of Hazards Correct Answer: - Physical
- Moral (dishonesty)
- Morale (carelessness)
Underwriting department Correct Answer: - Responsible for the selection of risks to insure
and determines the rate to be charged for
coverage
Domestic Insurance Co Correct Answer: - located in the state it's doing business in
Foreign Insurance Co Correct Answer: - allowed to do business in a state other than their
home state
Alien Insurance Co Correct Answer: - authorized to conduct business in any of the 50
states but who has its home office in another
country
Cerrtificate of Authority Correct Answer: - What an insurance company needs to have in
order to operate in a state
Fraternal Organization Correct Answer: - A non profit association and only can provide
insurance to its members.
Reciprocal Organization Correct Answer: - A type of cooperative insurance. Each
policyholder is insured by all other policyholders.
Reinsurance Correct Answer: - Insurance between insurers
- limits liability and prevents catastrophic loss
An agent has 3 types of authority Correct Answer: - Expressed authority
- Implied Authority
- Apparent authority
Expressed Authority Correct Answer: - Written in a producer's contract
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