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Life insurance exam Practice Questions and Answers (100% Pass)
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Life insurance exam Practice Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMLife insurance exam Practice Questions and
Answers (100% Pass)
life insurance - ✔️✔️insurance that pays to a named beneficiary or the deceased's estate
upon the death of the insured,may b annuity or endowment, may incl benef for accident
death/dismemberment, disability, protects against risk pf premature death which
exposes a finNcial riskto family or business. ie:burial expenses, pay debts, loss of family
inc/business profits
insurance - ✔️✔️content that indemnifies another against loss, damage, liab arising from
unknown event
indemnify - ✔️✔️make a person whole by restoring that person to the same financial
poistion that existed. 4 the loss
insured - ✔️✔️policy owner
premium - ✔️✔️set amount of money payable for policy/coverage
insurance company - ✔️✔️insurer
policy - ✔️✔️agreement insurer and insured, agreeement/contract
loss - ✔️✔️reduction in value and asset
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
claim - ✔️✔️demand for payment of insured benefit to person named in policy
risk - ✔️✔️uncertainty of financial loss when one or more outcome is possible. must be
element of doubt and uncertainity
pure risk - ✔️✔️only a chance of loss, only pure risk is insurable, risk associated with
chance of loss
speculative risk - ✔️✔️involves both uncertain of loss and gain ie betting at a race track/
investing in the stock market
peril - ✔️✔️immediate specific event causing loss and giving rise to risk. ie building burns
as a result of "fire" or person dies as a result of "death"
hazard - ✔️✔️fsctor that gives rise to peril
three types of hazards - ✔️✔️physical, moral, morale
physical hazard - ✔️✔️arises from material, structural, or operational features ie:
unsanitary conditions slippery floors
moral hazard - ✔️✔️arise from peoples habits or values (lying, cheating)
morale hazard - ✔️✔️arises out of human negligence ie: dont wear seatbelt
5 ways to manage risks - ✔️✔️share transfer avoid reduction retention
sharing risk - ✔️✔️when risk cannot be avoided& retention causes too much exposure
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