Exam (elaborations)
Louisiana health and life insurance ch 1 with verified solutions
- Course
- Institution
Louisiana health and life insurance ch 1 with verified solutions
[Show more]
Content preview
Louisiana health and life insurance ch 1In insurance, when is the offer usually made on a contract? - correct answer ✔✔When the insurance
application is submitted
Insurance is used to transfer what to the insurance company? - correct answer ✔✔Financial
responsibility for loss
What do individuals use to transfer their risk of loss to a larger group? - correct answer ✔✔Insurance
What law is the foundation of the statistical prediction of loss upon which rates for insurance are
calculated? - correct answer ✔✔Law of large numbers
When a change needs to be made on the application for insurance, which is the best method for
correcting the information? - correct answer ✔✔Complete a new application or ask the applicant to
initial the correction on the original application
Who owns stock companies? - correct answer ✔✔Stockholders
Conditions that increase the chance of a loss are known as what? - correct answer ✔✔Hazards
The reduction, decrease, or disappearance of the value of the person or property insured in a policy is
known as what? - correct answer ✔✔Loss
An insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what
type of insurer did the insured purchase the policy? - correct answer ✔✔Mutual
The insurer organized to return a profit to the stockholders is what type of insurer? - correct answer
✔✔Stock company
, An applicant conceals relevant health information on the application. The application presents why type
of hazard? - correct answer ✔✔Moral
When risks with higher probability of loss are seeking insurance more often than other risks, this is
known as what? - correct answer ✔✔Adverse selection
Wagering on a sporting event is known as what type of risk? - correct answer ✔✔Speculative
What are the three types of hazards? - correct answer ✔✔Physical, moral, and morale
When does an insurance policy go into effect? - correct answer ✔✔When the policy is delivered and the
premium is paid
If an agent fails to obtain the applicant's signature on the insurance application, what must the insurer
do? - correct answer ✔✔Send the application back to the applicant for signature
Insurance is a contract that protects the insured from what? - correct answer ✔✔Loss
What type of insurer is a voluntarily formed organization that provides insurance benefits for members
of a affiliated lodge or religious organizations with a representative form of government? - correct
answer ✔✔Fraternal insurer
Whom dos an insurance agent represent? - correct answer ✔✔Insurance company
What type of insurer is formed under the laws of another country? - correct answer ✔✔Alien
A person who does not lock the doors to his or her house shows an indifferent attitude. This person
presents what type of hazard? - correct answer ✔✔Morale
Insurers are classified according to their domicile. What are the three types of insurers? - correct answer
✔✔Domestic, foreign, and alien
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 BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now