100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Indiana Life License Exam (1). Questions & 100% Verified Correct Answers with complete solutions (Latest update CA$11.50   Add to cart
Quickly navigate to
Preview
  2.  
  3. Insurance
  4.  
  5. Insurance
  6.  
  7. Insurance

Exam (elaborations)

Indiana Life License Exam (1). Questions & 100% Verified Correct Answers with complete solutions (Latest update

 6 views  0 purchase

Indiana Life License Exam (1). Questions & 100% Verified Correct Answers with complete solutions (Latest update

Preview 3 out of 18  pages

Document information

  • August 14, 2024
  • 18
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • indiana life license exam 1

Written for

All documents for this subject (257)

Seller

avatar-seller
topgradesdr

Reviews received

Content preview

Indiana Life License Exam
Protects against loss - ANS-Life Insurnace

Is the possibility that a loss may occur - ANS-Risk

Has a chance of loss only - ANS-Pure Risk

Has a chance of loss or gain (gambling) - ANS-Speculative Risk

Sharing potential loss with someone - ANS-Sharing (Risk)

Transfer the risk to another party, (insurance company) - ANS-Transfer (Risk)

Stay away from a risky situation or action (no sky diving) - ANS-Avoidance (Risk)

Live a healthy life style to reduce risk (wear your seat belt) - ANS-Reduction (Risk)

Be self-insured or set up a savings fund to offset the cost of potential loss - ANS-Retention
(Risk)

a basic principle of insurance - ANS-Transferring risk is

1. Must be a large number of similar risks to pool and share
2. Must be measurable (a definite value must be placed on the loss
3. Must be uncertain (loss due to chance)
4. Must cause economic hardship (the loss must be significant)
5. Cannot be catastrophic (the loss cannot be too great to insure against) - ANS-To be insurable
you must have (5 things)

A reduction in the quantity or value of something - ANS-Loss

The immediate event causing a loss (fire and death) - ANS-Peril

The factor that gives rise to a peril - ANS-Hazard

The larger the number of similar risks, the more accurate the prediction of future loss. This is
important because insurance rates and premiums are based on these numbers. - ANS-The law
of large numbers

Are companies that sell insurance. They may be private or Government. There are several
types but the most common are Stock and Mutual Insurers - ANS-Insurers

,Are made up of stock holders who have shares in the company and receive dividends based on
company profits. The dividends received from stock insurers ARE taxable - ANS-Stock Insurers
(Companies)

Are owned by policy-holders and dividends received from mutual insurers are based on a return
of excess premium and are therefore NOT taxable - ANS-Mutual Insurers (Companies)

Insurers are also classified by their place of origin which means where they conduct business. -
ANS-Place of Origin

Chartered or incorporated within the state - ANS-Domestic Insurer

Chartered in another state, US territory, or District of Columbia - ANS-Foreign Insurer

Chartered outside of the US, US Territories, or District of Columbia - ANS-Alien Insurer

Individuals who solicit applications for life insurance. They represent the insurer. -
ANS-Producers or agents are

Written in the producer's contract what they can and cannot do - ANS-Expressed Authoirty

Not written in the producer's contract but granted to do actual business (collecting initial
premium) - ANS-Implied Authority

Perceived by the public as a result of the producer's actions - ANS-Apparent Authority

A contract is a legally binding agreement between two or more legally competent parties to form
a valid contract. - ANS-Legal Contracts

An offer, followed by an acceptance. The application and initial premium, if collected from the
proposed insured is the offer, and the insurance company approving the application and issuing
a policy is the acceptance. - ANS-Agreement (Offer and Acceptance)

The exchange of something of value for a service for a service, such as the exchange of
premiums for insurance coverage. - ANS-Consideration

Have legal capacity to enter into a contract. Parties to a contract must be legal age, sane, sober
of sound mind. - ANS-Competent Parties

The purpose of an insurance contract must be legal - ANS-Legal Purposes

A statement guaranteed to be true (the absolute truth) - ANS-Warranties

, A statement believed to be true to the best of one's knowledge - ANS-Representations

False Statement - ANS-Mis-Representation

Failure to disclose a known fact - ANS-Concealment

Intentional act designed to deceive and induce (a lie for financial gain) - ANS-Fraud

To intentionally give up a known right - ANS-Waiver

It creates immediate estate, upon the death of the insured
It can pay for doctor's bills and funeral costs
It can pay for estate taxes or pay off debts
It can also pay for education and help with retirement needs for the spouse - ANS-Reasons to
buy Life Insurance

Sales Presentations
Taking the application
Under-writing the risk
Accepting or declining the risk
Issuing and delivering the policy - ANS-The Steps to issuing a policy are

General Information
The medical Information
Agent's report - ANS-Three Parts to the Application

Is the process of selecting and categorizing risks into similar groups and assigning the
appropriate premium amount to each group - ANS-Under-writing

Is the tendency for those who are more prone to loss to purchase insurance. It is the tendency
for the people in poor health to buy or seek to buy insurance more than other risks (healthy
individuals) - ANS-Adverse Selection

An insurer can request an attending Physician statement in addition to the medical exam. This
concerns the details of the insured's medical history - ANS-Medical Exams and History

Non-profit member funded association that collects and tracks under-writing information on
applicants for life and health insurance.
Will only have general medical information on a n applicant if that person has previously applied
for coverage with an associated insurance company.
The MIB does not have specific medical history and information on all applicants - ANS-The
Medical Information Bureau (MIB)

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 topgradesdr. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$11.50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73918 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

Recently viewed by you

Exam (elaborations) ·

(0)

HSY1511 Assignment 3 (QUALITY ANSWERS) Semester 1 2024
CA$11.50
  • (0)
  Add to cart