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Louisiana health and life insurance ch 1 with verified solutions
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Louisiana health and life insurance ch 1 with verified solutions
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Louisiana health and life insurance ch 1In insurance, when is the offer usually made on a contract? - correct answer ✔✔When the insurance
application is submitted
Insurance is used to transfer what to the insurance company? - correct answer ✔✔Financial
responsibility for loss
What do individuals use to transfer their risk of loss to a larger group? - correct answer ✔✔Insurance
What law is the foundation of the statistical prediction of loss upon which rates for insurance are
calculated? - correct answer ✔✔Law of large numbers
When a change needs to be made on the application for insurance, which is the best method for
correcting the information? - correct answer ✔✔Complete a new application or ask the applicant to
initial the correction on the original application
Who owns stock companies? - correct answer ✔✔Stockholders
Conditions that increase the chance of a loss are known as what? - correct answer ✔✔Hazards
The reduction, decrease, or disappearance of the value of the person or property insured in a policy is
known as what? - correct answer ✔✔Loss
An insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what
type of insurer did the insured purchase the policy? - correct answer ✔✔Mutual
The insurer organized to return a profit to the stockholders is what type of insurer? - correct answer
✔✔Stock company
, An applicant conceals relevant health information on the application. The application presents why type
of hazard? - correct answer ✔✔Moral
When risks with higher probability of loss are seeking insurance more often than other risks, this is
known as what? - correct answer ✔✔Adverse selection
Wagering on a sporting event is known as what type of risk? - correct answer ✔✔Speculative
What are the three types of hazards? - correct answer ✔✔Physical, moral, and morale
When does an insurance policy go into effect? - correct answer ✔✔When the policy is delivered and the
premium is paid
If an agent fails to obtain the applicant's signature on the insurance application, what must the insurer
do? - correct answer ✔✔Send the application back to the applicant for signature
Insurance is a contract that protects the insured from what? - correct answer ✔✔Loss
What type of insurer is a voluntarily formed organization that provides insurance benefits for members
of a affiliated lodge or religious organizations with a representative form of government? - correct
answer ✔✔Fraternal insurer
Whom dos an insurance agent represent? - correct answer ✔✔Insurance company
What type of insurer is formed under the laws of another country? - correct answer ✔✔Alien
A person who does not lock the doors to his or her house shows an indifferent attitude. This person
presents what type of hazard? - correct answer ✔✔Morale
Insurers are classified according to their domicile. What are the three types of insurers? - correct answer
✔✔Domestic, foreign, and alien
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