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Massachusetts Life and Health Insurance Exam Questions and Answers well Explained Latest 2024/2025 Update 100% Correct. CA$12.19   Add to cart
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Massachusetts Life and Health Insurance Exam Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.
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  • Massachusetts Life And Health Insurance

Material Misrepresentation - - a false statement that changes the outcome of issuing a policy - generally with the health statement Surplus Lines - any type of insurance for which there is no available market within the state, and the coverage must be placed with a non admitted insurer Mutual I...

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  • September 12, 2024
  • 53
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • massachusetts life and health insurance

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  • Massachusetts Life and Health Insurance
  • Massachusetts Life and Health Insurance

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Massachusetts Life and Health
Insurance Exam
Material Misrepresentation - - a false statement that changes the outcome of issuing a policy

- generally with the health statement



Surplus Lines - any type of insurance for which there is no available market within the state, and
the coverage must be placed with a non admitted insurer



Mutual Insurer - An insurer that is owned by its policyholders and formed as a corporation for the
purpose of providing insurance to them.- Non Taxable dividends & Participating Polcies



Insurance - Transfer of Risk



Risk - Uncertainty/ Possibility of Loss



Exposure - Risks for which the insurance company would be liable



Peril - Cause of Loss



Hazard - Something that causes an increase in the chance of loss



Physical Hazard - Hazard that can be seen



Moral Hazard - A belief that intentionally causing a loss is acceptable



Morale Hazard - Carelessness

,STARR - Method of handling risk



S- Method of handling risks - Sharing



T- Method of handling risk - Transfer



A- Method of handling risk - Avoidance



R- Method of handling risk - Retention



R- Method of handling risk - Reduction



Contract Policy - An agreement between the insured and the insurer



Law of Large Numbers - The larger the group, the more accurate losses can be predicted



CANHAM Risks - Can be insured with the following characteristics



C- CANHAM Risks - Calculable



A- CANHAM Risks - Affordable



N- CANHAM Risks - Non- Catastrophic



H- CANHAM Risks - Homogeneous



A- CANHAM Risks - Accidental

,M- CANHAM Risks - Measurable



Adverse Selection - risks that have a greater than average chance of loss



Reinsurance- - An insurance company sells some of its risk to other insurance companies.



Facultative Reinsurance - the reinsurer evaluates each risk before allowing the transfer



Treaty Reinsurance - the reinsurer accepts the transfer according to an agreement called a treaty



Stock Insurer - An insurer that is owned by its stockholders and formed as a corporation for the
purpose of earning a profit for the stockholders.- Issues Non Par Policies



Fraternal Insurer - provides insurance and other benefits

must be a member of the society to get the benefits



Reciprocal Insurers - unincorporated groups of people that provide insurance for one another
through individual indemnity agreements



Llyod's Associations - Organizations that provide support facilities for underwriters or groups of
individuals that accept insurance risk.



Risk Retention Group - A liability insurance company owned by its members, which are exposed to
similar liability risks by virtue of being in the same business or industry.



Risk Purchasing Groups - Groups of people with similar insurance needs who form an organization
to buy insurance as a group.



Self-insurance - a business that pays its own claims

, Residual Market - insurance from the state or federal government



Insurance Company Locations - Domestic, Foreign, and Alien



Certificate of Authority - state license for an insurance company



Admitted or Authorized - state requires the insurance company to have a certificate of authority



Non-admitted - unauthorized-insurance company not required to have a Certificate of Authority
from the state



Methods of Marketing - - Independent

- Exclusive or captive

- General agents or managing general agents

- direct writing companies



Agency - The insurance agent acts on behalf of principal (Insurance Company)



Agent Authority - express, implied, apparent



Fiduciary Trust - - Promptly sends premiums to insurer

- Has knowledge of products

- Complies with laws and regulations

- Does not commingle funds



Legal Contract - Consideration, Legal Purpose, Offer (Made by Insured), Acceptance, Competent
Parties



Adhesion - Policy written by the insurance company

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