Nebraska State Life and Health Insurance Exam Terms Questions and Answers 100% Pass

Nebraska State Life and Health Insurance Exam Terms Questions and Answers 100% Pass Adverse Selection - Answer- Insuring of risks more prone to loss than the average Agent/Producer - Answer- legal representative of an insurance company Applicant/Proposed insured - Answer- a person applying for insurance Hazard - Answer- Conditions that increase the probability of a loss Moral - Answer- tendency toward increased risk (driving fast) Morale - Answer- indifference towards risk (not locking the door) Indemnity - Answer- restoring the insured to the condition that existed before loss Insurance - Answer- Transfer of risk of loss from an individual to na insurer Insurance Transaction - Answer- solicitation, negotiations or effectuation of a contract Insured - Answer- Person covered by the insurance policy Insurer - Answer- a company that issues an insurance policy Law of Large Numbers - Answer- the larger the number of people with the same exposure to loss the more predictable the loss will be Peril - Answer- the cause of loss Policyowner - Answer- person who has the rights and privileges in he policy Risk - Answer- uncertainty or chance of loss Ownership - Answer- Stock (nonparticipating) Mutual (participating/dividends) Domicile - Answer- Domestic (this state) Foreign (another state) Alien (another nation) Required Elements of Contract - Answer- Agreement, Consideration, Competent Parties, Legal Purpose Personal Contract - Answer- Between an insurer and an individual Aleatory Contract - Answer- Exchange of unequal values Unilateral Contract - Answer- Only one party is legally bound by the contract Adhesion Contract - Answer- Contracts are accepted by the applicants as is Conditional Contract - Answer- Both parties must meet certain conditions Misrepresentation - Answer- An untrue statement on the insurance application Warranty - Answer- An absolutely true statement Concealment - Answer- Intentional withholding of material information Fraud - Answer- Intentional act with the purpose of deceiving another party Insurable Interest - Answer- Financial interest in the life of another person (only needed at inception of contract) Solicitation of Insurance - Answer- Attempt to persuade a person to buy a policy Underwriting - Answer- Risk Selection and classification Advertisements - Answer- Must be truth and not misleading Illustrations - Answer- Presentation of non guaranteed elements Buyers Guide - Answer- generic information about insurance Policy Summary - Answer- specific information about policy features and elements 3 Parts of Application - Answer- General Information, Medical Information, Agent's Report Underwriting Sources - Answer- Application, Consumer Reports, MIB Risk Classifications - Answer- Preferred, Standard, Substandard Premium Factors - Answer- Mortality, Interest, Expense Premium Payment Mode - Answer- Annual, Semi-annual, Quarterly, monthly. Higher the frequency the higher the payment Conditional Receipt - Answer- When prem is given with the application, courageous is effective as of date of application Statement of Good Health - Answer- Required if premium is paid at policy delivery. Who must sign the application? - Answer- Agent and Applicant Beneficiary - Answer- Person who receives the benefits from an insurance policy Death Benefit - Answer- Amount paid upon the insured's de