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Law of Large Numbers - Answer-The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. Insurance - Answer-Transfers the risk of loss from an individual or business entity to an insurance company The three elements of insurable risk are - Answer...

To be considered an insurable risk, a loss may NOT be - Answer-catastrophic Which of the following persons would be required to hold a producer license? - Answer-a nonresident agent who negotiates insurance contracts Which of the following is the oldest known type of insurance? - Answer-ocean mar...

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? - Answer-Aleatory: an aleatory contract means unequal amounts are exchanged between payments and bene...

Agent/Producer - Answer-A legal representative of an insurance company Broker - Answer-An insurance producer not appointed by an insurer and whom represents the client Insured - Answer-A person covered by an insurance policy Insurance policy - Answer-A legal contract between a policyowner (and/or...

Accelerated benefits - Answer-riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses accident - Answer-an unplanned, unforeseen event which occurs suddenly at an unspecified place Accidental Death and Dismemberment - Answer-...

Attained Age - Answer-the insured age at the time the policy is issues or renewed cash value - Answer-a policy's savings element or living benefit face amount - Answer-the amount of benefit stated in the life insurance policy fixed life insurance - Answer-contracts that offer guaranteed minimum ...

The members of a limited liability company are insureds under a businessowners policy (BOP) if - Answer-The limited liability company is designated as the named insured. An endorsement added to a businessowners policy that provides coverage for direct damage caused by utility service disruption s...

Owned Autos - Answer-Eligible vehicles titled by the insured or acquired during the policy period Non Owned Autos - Answer-any private passenger auto, pickup van or trailer operated by or in the custody of the named insured or family member, but are not titled by or furnished for the regular use ...