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Life & Health Pre Licensing Study Guide Exam And 100% Accurate Answers. $9.99   Add to cart

Exam (elaborations)

Life & Health Pre Licensing Study Guide Exam And 100% Accurate Answers.

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  • Course
  • Maryland life prelicensing
  • Institution
  • Maryland Life Prelicensing

Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss) Pure - only possibility of loss (Death, Illness) Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance Reimbursement contract - Answer pays back certain $$ based o...

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  • August 27, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Maryland life prelicensing
  • Maryland life prelicensing
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Life & Health Pre Licensing Study Guide
Exam And 100% Accurate Answers.
Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss)

Pure - only possibility of loss (Death, Illness)



Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance



Reimbursement contract - Answer pays back certain $$ based on loss (Auto Insurance)



Third Party Contract - Answer Policy owned by someone other than the insured - husband buys life ins
on wife



Peril - Answer cause of a loss - fire flood



Hazard (2) - Answer Increase chance of risk

Moral hazard - lie misrepresent

Morale Hazard - risk taker careless



Method to Manage Risk - Answer ARRT

AVOID.RETAIN.REDUCE.TRANSFER



Pooling Concept - Answer looking at groups of individuals to make predictions of potential losses



Law of Large Numbers - Answer larger the group more accurate predictions



Exposure Unit - Answer the person/property being considered

, Indemnify - Answer Return one to economic position enjoyed prior to the loss - not to profit from -
(reimburse)



Ascertainable - Answer dollar amount that can be placed on the loss



needs approach - Answer life insurance uses needs approach. what are the needs of the family left
behind

- disability insurance for: admin worker or Doctor

- health insurance for: someone in GA or NY City



Contestable Clause - Answer Loss must be uncertain - not on purpose FRAUD

suicide w/i first 2 years not covered, premiums returned. AFTER 2 years incontestable claim is paid



Insurable Interest - Answer Insured must have an insurable interest (old lady nursing home)



3 types of Insurers - Answer Private commercial companies / Private non commercial/ gov. non profit



Commercial Insurers - Answer stock insurance companies - owned by stock holders - non participating -
taxable dividends (Profit)



Mutual Company - Answer Owned by policy holders - participating - dividends non taxable (return of
overcharged premium)



non commercial insurers - Answer Reciprocal Fraternal Lloyds Assessment Reinsurance



Reciprocal Insurance - Answer unincorporated members called subscribers pay into own account each
is charged fair share for loss by another subscriber. Managed by Attorney-in-Fact (mustang club)



Fraternal Insurers - Answer The Shriners - Members have responsibilities - access to insurance non
profit

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