ALABAMA LIFE AND HEALTH INSURANCE
EXAM
when it is intentional and material - ANSWERS-when would a misrepresentation
on an insurance application be considered fraud?
uncertainty of loss - ANSWERS-for the purpose of insurance, what is risk?
the agent's - ANSWERS-whose responsibility is it to determine that all the
questions on an application are answered?
restriction of coverage; refusal to accept risk; accepting a risk at a higher rate -
ANSWERS-what are the strategies used by underwriters to prevent adverse
selection?
foreign - ANSWERS-an insurance company is domiciled in California and transacts
business in Nevada. what is the insurer's classification in Nevada?
speculative - ANSWERS-wagering on a sporting event is known as what type of
risk?
loss must be:
, due to chance,
definite and measurable, statistically predictable,
not catastrophic,
coverage cannot be mandatory - ANSWERS-what are the 5 characteristics of an
ideally insurable risk?
morale - ANSWERS-a person who does not lock the doors to his or her house
shows an indifferent attitude. This person presents what type of hazard?
pure risk - ANSWERS-a situation in which a person can only experience a loss and
no gain presents what type of risk?
agreement (offer and acceptance), consideration, competent parties, and legal
purpose - ANSWERS-what are the 4 elements of an insurance contract?
peril - ANSWERS-what is the term for the causes of loss insured against an
insurance policy?
hazards - ANSWERS-conditions that increase the chance of loss are known as
what?
the agent - ANSWERS-if an applicant does not receive his policy, who would be
held responsible?
EXAM
when it is intentional and material - ANSWERS-when would a misrepresentation
on an insurance application be considered fraud?
uncertainty of loss - ANSWERS-for the purpose of insurance, what is risk?
the agent's - ANSWERS-whose responsibility is it to determine that all the
questions on an application are answered?
restriction of coverage; refusal to accept risk; accepting a risk at a higher rate -
ANSWERS-what are the strategies used by underwriters to prevent adverse
selection?
foreign - ANSWERS-an insurance company is domiciled in California and transacts
business in Nevada. what is the insurer's classification in Nevada?
speculative - ANSWERS-wagering on a sporting event is known as what type of
risk?
loss must be:
, due to chance,
definite and measurable, statistically predictable,
not catastrophic,
coverage cannot be mandatory - ANSWERS-what are the 5 characteristics of an
ideally insurable risk?
morale - ANSWERS-a person who does not lock the doors to his or her house
shows an indifferent attitude. This person presents what type of hazard?
pure risk - ANSWERS-a situation in which a person can only experience a loss and
no gain presents what type of risk?
agreement (offer and acceptance), consideration, competent parties, and legal
purpose - ANSWERS-what are the 4 elements of an insurance contract?
peril - ANSWERS-what is the term for the causes of loss insured against an
insurance policy?
hazards - ANSWERS-conditions that increase the chance of loss are known as
what?
the agent - ANSWERS-if an applicant does not receive his policy, who would be
held responsible?
