Life & Health Pre Licensing Study Guide Exam And 100% Accurate Answers.
3 views 0 purchase
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 $$ based o...
Life & Health Pre Licensing Study Guide
Exam And 100% Accurate Answers.
Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss)
Pure - only possibility of loss (Death, Illness)
Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance
Reimbursement contract - Answer pays back certain $$ 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
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 TestSolver9. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.