State Supplement Questions and Answers Already Passed
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Course
State Supplement
Institution
State Supplement
Life Insurance Exam Questions and
Answers Already Passed
life insurance insurance that pays to a named beneficiary or the deceased's estate upon the
death of the insured,may b annuity or endowment, may incl benef for accident
death/dismemberment, disability, protects against risk pf prematu...
Life Insurance Exam Questions and
Answers Already Passed
life insurance ✔✔insurance that pays to a named beneficiary or the deceased's estate upon the
death of the insured,may b annuity or endowment, may incl benef for accident
death/dismemberment, disability, protects against risk pf premature death which exposes a
finNcial riskto family or business. ie:burial expenses, pay debts, loss of family inc/business
profits
insurance ✔✔content that indemnifies another against loss, damage, liab arising from unknown
event
indemnify ✔✔make a person whole by restoring that person to the same financial poistion that
existed. 4 the loss
insured ✔✔policy owner
premium ✔✔set amount of money payable for policy/coverage
insurance company ✔✔insurer
,policy ✔✔agreement insurer and insured, agreeement/contract
loss ✔✔reduction in value and asset
claim ✔✔demand for payment of insured benefit to person named in policy
risk ✔✔uncertainty of financial loss when one or more outcome is possible. must be element of
doubt and uncertainity
pure risk ✔✔only a chance of loss, only pure risk is insurable, risk associated with chance of loss
speculative risk ✔✔involves both uncertain of loss and gain ie betting at a race track/ investing
in the stock market
peril ✔✔immediate specific event causing loss and giving rise to risk. ie building burns as a
result of "fire" or person dies as a result of "death"
, hazard ✔✔fsctor that gives rise to peril
three types of hazards ✔✔physical, moral, morale
physical hazard ✔✔arises from material, structural, or operational features ie: unsanitary
conditions slippery floors
moral hazard ✔✔arise from peoples habits or values (lying, cheating)
morale hazard ✔✔arises out of human negligence ie: dont wear seatbelt
5 ways to manage risks ✔✔share transfer avoid reduction retention
sharing risk ✔✔when risk cannot be avoided& retention causes too much exposure
transfer risk ✔✔move risk to another insurance co
types of transfers ✔✔non insurance and contract
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