What are speculative risks? - ANSWER Risks that involve three outcomes: loss, gain, or no change
What are pure risks? - ANSWER Risks that involve no possibility of gain
What risks are insurable? - ANSWER Only pure risks
Speculative risks involve the possibility of gain so they cannot be in...
LOMA 281 Questions &
Answers 100% Correct!
What are speculative risks? - ANSWER Risks that involve three outcomes: loss, gain, or no change
What are pure risks? - ANSWER Risks that involve no possibility of gain
What risks are insurable? - ANSWER Only pure risks
Speculative risks involve the possibility of gain so they cannot be insured
Is a life insurance policy a commutative or aleatory contract? - ANSWER Aleatory
Are life insurance contracts bargaining contracts? - ANSWER No, they are contracts of adhesion. The
insurance company sets the terms and the applicant can either accept or reject
Are insurance contracts formal or informal? - ANSWER Informal
What are the requirements of a valid contract? - ANSWER Mutual assent
Legally adequate consideration
Lawful purpose
Contractual capacity
What is a retention limit? - ANSWER The maximum amount of risk the insurer is willing to carry at its
own risk
What is a commutative contract? - ANSWER The parties agree to exchange specified items or services
that are equal in value
, What is variable universal life insurance? - ANSWER Cash value life insurance that combines the
premium and death benefit flexibility of universal life insurance with the investment flexibility and
risk of variable life insurance. Also called flexible-premium variable life insurance.
Are annuities life insurance products according to U.S. regulations? - ANSWER Yes
What does SPIA stand for? - ANSWER Single Premium Immediate Annuity
What is the time span between each annuity payment? - ANSWER Annuity period
Ex: 1 month or 1 year
What is a straight life annuity? - ANSWER A life annuity which provides periodic income payments for
only as long as the annuitant lives. Also called single life annuity or life only annuity.
What is a life income with refund annuity? - ANSWER A life annuity that provides periodic income
payments throughout the lifetime of the annuitant and guarantees that at least the purchase price of
the annuity will be paid out. Also known as single life with refund annuity or refund annuity.
What is the Affordable Care Act? - ANSWER In the U.S., a law that requires insurance companies to
accept all applicants for medical expense coverage and restricts insurers from basing premium rates
on preexisting conditions.
What is the main emphasis in managed health care plans? - ANSWER Prevention, early intervention,
and cost-savings
What is a consumer driven health plan (CDHP)?
What do they use for payment of routine health care expenses? - ANSWER An employer-sponsored
health benefit plan that gives individuals the freedom to choose health care providers and benefits,
but also requires them to assume the financial risk for their choices.
HSA
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