100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
ALABAMA LIFE AND HEALTH INSURANCE EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!.$26.99
Add to cart
ALABAMA LIFE AND HEALTH INSURANCE EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!.
13 views 0 purchase
Course
ALABAMA LIFE AND HEALTH INSURANCE
Institution
ALABAMA LIFE AND HEALTH INSURANCE
ALABAMA LIFE AND HEALTH INSURANCE EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!.
ALABAMA LIFE AND HEALTH INSURANCE EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!.
A producer who is acting as an agent is representing: - ANSWER-Always the
insurer
All of the following are elements of a contract, except: - ANSWER-Authority
All enforceable contracts must include these characteristics: offer and
acceptance (agreement), considerations, competent parties, and legal purpose.
Authority is not considered one of the elements of a legal contract.
Each of the following would be an element in the definition of fraud, except: -
ANSWER-An individual warrants a fact stated on the application
A warranted fact is one guaranteed to be true. Although no statement on an
application is regarded as warranty, no fraud is involved if a statement is
guaranteed to be true.
Examples of Fraud - ANSWER-Intentional material misrepresentation with the
intent of causing injury to another party
Withholding of known material facts
,A false statement on the application that is material to the acceptance of the
risk
A company that is licensed to sell insurance in a particular state is: - ANSWER-
An authorized Company
In order to be valid, a contract must be between individuals considered legally
able to enter into an agreement. This principle is known as: - ANSWER-
Competent parties
Which of the following would be considered a speculative risk? - ANSWER-The
possibility the painting you bought might be a long-lost masterpiece
A speculative risk is one in which there is a chance for either loss or gain.
Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure
risk, where there is no chance of gain, only a chance of loss exists.
Which is the proper term for a company owned by its policy owners? -
ANSWER-A mutual insurance company
An insurance contract is an aleatory contract. This means: - ANSWER-Equal
value is not given by both parties to the contract
Aleatory: contract of unequal values exchanged
The ____________ market is a private source of coverage of last resort for
individuals or businesses that have been rejected by voluntary market insurers.
- ANSWER-Residual
To address adverse selection what can an insurer legally do? - ANSWER-
Establish and enforce sound underwriting practices
,Underwriting helps to protect the insurer against adverse selection and
accepting risks that are more likely than average to suffer losses.
A contract that is drafted by an insurer and receives no input or alteration from
the insured, is considered a(n): - ANSWER-Contract of Adhesion
_________ refers to the jurisdiction where an insurer was formed or
incorporated. - ANSWER-Domicile: Domicile refers to the jurisdiction either
state or country where an insurer was formed or incorporated.
_____________ insurance allows for insurance coverage to be obtained when
not available from admitted carriers. - ANSWER-Surplus Lines
Insurance can be obtained through surplus lines brokers (producers) from non-
admitted insurers.
To make insurance more affordable and protect the insurance company from
paying out too much in claims, insurers will: - ANSWER-Reinsure the risk
Reinsurance is what makes insurance affordable. Reinsurance companies are
insurance companies that accept all or a portion of the financial risk of loss
from the insurance company.
The field underwriter is the _________ and is not a determiner of insurability. -
ANSWER-Producer
The producer is in the field soliciting applications for insurance and in effect is
another pair of eyes and ears for the insurer in helping to issue policies to
insurable prospects.
, Third-party ownership refers to: - ANSWER-A situation where the policyowner
is someone other than the insured
Which statement best describes the term reserve? - ANSWER-That amount
that, when increased by future premiums on outstanding policies, and interest
on those premiums will enable the company to meet future death claims
The applicant, if other than the proposed insured, must have: - ANSWER-An
insurable interest in the life of the insured
Controlled business may be defined as insurance sold: - ANSWER-To the
producer, the producer's family and friends, and the producer's business
associates
With regard to life insurance policies, loading refers to: - ANSWER-Assignment
of the appropriate share of the company's operating expenses to each policy
Which of the following statements about the average number of people who
die each year is true? - ANSWER-It is called the mortality rate
Mortality Rate: which is the statistical probability of death in a large population
of insureds.
Which of the following is NOT a characteristic of life insurance as property? -
ANSWER-It requires a fund portfolio manager
Characteristics:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller trustednurse. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $26.99. You're not tied to anything after your purchase.
