Pooling of risks - Study guides, Class notes & Summaries

Life Insurance - This type of insurance pays when an insured has died to offset the economic loss to dependents. A) life B) health C) annuity D) property and casualty Policy - An insurance _________ is the device used by insurance companies to accumulate funds to meet uncertain losses. Risk Pooling - Insurance companies aggregate (collect) premiums to make claims payments - the aggregating of premiums to pay claims is called _____ ___________. Exposure Units - The more _______ units an in...

Insurance Exam Questions and Answers Already Passed An insurer's ability to make unpredictable payouts to policyowners is called Liquidity A type of insurer that is owned by its policyowners is called Mutual Which of these are considered to be events or conditions that increase the chances of an insured's loss? Hazards An example of risk sharing would be Doctors pooling their money to cover malpractice exposures. How do insurers predict the increase of individual risks? Law...

moral hazard - ANSWER behaving differently when you know someone else is taking the risk (Induced demand) adverse selection - ANSWER the sicker people likely want more insurance (the healthier, less) Asymmetries of information Healthcare - ANSWER Physician vs. patient (vs. 3rd Party payer) Uncertainty and Health Care - ANSWER financing health care in the United States is a complex matter •Workarounds •Redundancies •Contradictions single national payment system - ANSWER...

Categorize the broad approaches to health care reimbursement methodologies. - ANSWERA limited number of payment methodologies are used to reimburse providers. Payment methodologies fall into two broad classifications: fee-for-service and capitation. Under fee-for-service, of which many variations exist, the greater the amount of services provided, the higher the amount of reimbursement. Under capitation, a fixed payment is made to providers for each covered life, or enrollee, independent of the ...

Nonmarketability of risks - Inherent I medicine and medical practice health insurance. Moral hazard - behaving differently when you know someone else is taking the risk (induced demand) Adverse selection - The sicker people likely want more insurance (the healthier, less) Pooling of risk - Sharing risk proportionately among many is a basic insurance concept Financing health care in U.S. - •Workarounds •Redundancies •Contradictions (NHEA) - National Health Expenditure Accounts Nati...

2-15 Insurance License Florida exam | Questions and Correct Solutions | Latest Update 2024/2025 | Graded A+ Speculative Risk - Answer -Risk that involves chance of both loss and gain; not insurable Pure Risk - Answer -Risk that involves the chance of loss only, there is no opportunity for gain; insurable Law of Large Numbers - Answer -Basic principle of insurance that the larger the number of individual risks combined into a group, the more certainty there is in predicting the amount o...

Florida 2-40 health license chapters review already passed Loss Sharing The spreading or pooling of risks over a large group of individuals Risk pooling Same as loss sharing Law of large numbers Science of probability and experience of mortality (death) & morbidity (sickness). The larger and more homogenous the group the more certain the predictions Risk Is defined as uncertainty regarding loss Speculative risk The chance of both loss and gain Pure risk Involve only the ch...

Wise Test Questions and Answers 100% Pass If a person earns $36,000 annually, owns assets worth $156,000, and has liabilities totaling $85,000, what is their net worth? Their net worth is $71,000. (Net Worth = Assets - Liabilities) When evaluating renters insurance, what should be understood about its purpose? It is designed to protect against financial losses from incidents like fire, theft, and personal injuries. (Renters insurance is meant to cover financial losses related to the...

LOMA 281 Practice Test with Complete Solutions Pure risk - Answer-Risks that involve either a loss or no loss Speculative risk - Answer-Risk that can result in a loss, gain or no change Insurance - Answer-A method for transferring risk from an individual to an insurance company Premium - Answer-The amount that the insured pays in exchange for a promise of money Risk pooling - Answer-Insurers collect premiums from all insured people and spread the cost of the relatively few anticip...

Pooling of Risks - Answer- A large group of people contribute money to a fund out of which their losses can be paid Policyowner - Answer- is the person or org that applies for the policy and pays the premium Actuarial Tables - Answer- Are statistical tables that are used when calculating premium rates and mortality loss reserves Life Insurance Policies transfer: - Answer- financial risks of premature death on a defined amount Loss of income - Answer- the face amount of life insurance...