100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Washington Life Health Insurance Exam 303 Questions with Verified Answers,100% CORRECT $16.99   Add to cart

Exam (elaborations)

Washington Life Health Insurance Exam 303 Questions with Verified Answers,100% CORRECT

 6 views  0 purchase
  • Course
  • Washington Life Health Insurance
  • Institution
  • Washington Life Health Insurance

Washington Life Health Insurance Exam 303 Questions with Verified Answers

Preview 4 out of 35  pages

  • October 28, 2024
  • 35
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Washington Life Health Insurance
  • Washington Life Health Insurance
avatar-seller
paulhans
Washington Life Health Insurance Exam 303 Questions with
Verified Answers
Policy owner - CORRECT ANSWER usually, but not always the person covered by
the policy

Beneficiary - CORRECT ANSWER the person who is paid when a claim
is submitted

agent/producer - CORRECT ANSWER acts as a legal representative
of the insurance company

broker - CORRECT ANSWER representative of the Insured, not the insurance
company

risk - CORRECT ANSWER The chance or uncertainty of loss

Pure risk - CORRECT ANSWER the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.

Speculative risk - CORRECT ANSWER s the chance of loss one accepts in the hope
of realizing a gain

Risk avoidance - CORRECT ANSWER staying away from risky activities altogether

Risk reduction - CORRECT ANSWER reduce the chance of something bad
happening

Risk shifting - CORRECT ANSWER Get someone else to accept the risk

Buying insurance - CORRECT ANSWER transfer a portion of your risk to the Insurer

Risk Retention - CORRECT ANSWER the individual or business that opts not to buy
insurance retains the entire risk

,Indemnification - CORRECT ANSWER an insurance concept that states that some
portions of the insurance industry prefer that we be made only whole after a loss
rather than coming out ahead (Only getting back what you are owed, not getting
more than what you had to start with)

Subrogation - CORRECT ANSWER the transfer to the Insurer of the Insured's rights
to recover damages from a responsible third party

Peril - CORRECT ANSWER the cause of loss

Law of Large numbers - CORRECT ANSWER the mathematical concept that makes
it easier to predict losses if we have a large number of Insureds

Insurable losses are... - CORRECT ANSWER Economic, Predictable, Accidental,
Measurable, Non-Catastrophic

non-participating companies - CORRECT ANSWER Stock companies that exist for
the sole purpose of generating profits
for their stockholders

participating companies - CORRECT ANSWER A company owned by its policy
holders where the profits are distributed among policy holders

Social Security act - CORRECT ANSWER a guarantee that government
would never again allow workers (and their families) to become
destitute

OASDI (Social Security) - CORRECT ANSWER Old Age, Survivors, and Disability
Insurance...Federal Government law

FICA - CORRECT ANSWER Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.

Not covered by social security - CORRECT ANSWER payroll taxes levied on
employees, employers,
and the self-employed.

,FICA Fully Insured - CORRECT ANSWER (Worked for 10 years) payroll taxes levied
on employees, employers,
and the self-employed.

Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.

Currently Insured - CORRECT ANSWER Worked less than ten years. Only eligeable
for Survivor Benefits

Average Indexed Monthly
Earnings - CORRECT ANSWER Averages earnings over time period. Either way, the
more a worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)

Primary Insurance Amount (PIA). - CORRECT ANSWER Full retirement benefit
someone is entitled to at age 65 (some cases, 66-67)

elimination period (Disability) - CORRECT ANSWER the person must be
disabled for 5 months before starting to receive Disability
Benefits

underwriting - CORRECT ANSWER the selection and classification of risks.

actuary - CORRECT ANSWER A person who tracks the lifespan and chance of
illness or accident based on specific factors

Mortality table - CORRECT ANSWER predict the age at which
people in a given group are likely to die (Used by life insurers)

Morbidity table - CORRECT ANSWER predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)

field underwriters - CORRECT ANSWER Insurance agents

, declined risks - CORRECT ANSWER Applicants who are too risky are declined

Adverse selection - CORRECT ANSWER the tendency for high
risk people to be more likely to apply for insurance than low risk
people.

Premium = - CORRECT ANSWER Risk + Expenses - Interest

Premium mode - CORRECT ANSWER how frequently an Insured will pay the
premium

Accelerated Death Benefit Rider - CORRECT ANSWER requires the Insurer to pay
out part of the death benefit
(usually 50%) if the Insured has a diagnosis of a particular illness
likely to cause death within 12 months

Viatical Settlements - CORRECT ANSWER sell the policy to an investment company
that will continue to make the premium payments and collect the death benefit
when the Insured dies. The Insured will sell only if an investment company will
pay more than the current cash surrender value.

Group Policies share
these three characteristics - CORRECT ANSWER Reduced Cost;
Reduced Adverse Selection; and
Fixed Benefits.

Adverse selection - CORRECT ANSWER people who need
insurance the most are the ones most likely to buy it - and buy
more of it causing more loss claims

experience rating - CORRECT ANSWER looks at the claims
history for this particular group.
Experience rating puts the burden for
high premiums (and the credit for low
ones) squarely on the shoulders of
the group, because of the particular

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 paulhans. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81989 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$16.99
  • (0)
  Add to cart