Insurable risk Study guides, Class notes & Summaries

Who is considered a field underwriter? - An agent When must insurable interest exist in life insurance? - Application or issue date If no receipt is issued at the time of application, a statement of good health is usually required at the time of? - Policy delivery The Medical Information Bureau is?(MIB) - a source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay? - a higher premium Which document describes specifi...

Admitted Insurance Company vs. Non-Admitted Insurance Company - An admitted insurance company is authorized to transact insurance in California because it has a Certificate of Authority granted by the California Department of Insurance (CDI) A non-admitted insurance company is not authorized to transact insurance in California because of failing to comply with California requirements or did not seek admission Pure Risk vs. Speculative Risk - Pure risks are insurable but Speculative risks ar...

Perils correct answer: the cause of loss Policy Owner correct answer: the person who has the rights and privileges in the policy Risk correct answer: Uncertainty or chance of loss -Pure Risk(Insurable) -Speculative(Uninsurable) Insured correct answer: the person covered by the insurance policy insurer correct answer: a company that issues an insurance policy Law of large numbers correct answer: the larger the number of people with the same exposure to loss, the more predic...

Insurance - correct answer the transfer of Pure risk to the insurance company in consideration for a premium must be pure risk and calculable. Pure Risk - correct answer the chance of loss without any chance of gain; insurable Speculative Risk - correct answer possibility for gain or loss; not insurable Risk - correct answer Chance of loss Exposure - correct answer a condition that could result in loss hazard - correct answer something that increases the chance of loss ...

1. Insurers are in the business of assuming the financial risks of others which involves entering into a formal contract. A contract is enforceable at law only when all legal elements have been observed. Insurance contracts differ from other formal agreements and are subject to what three additional elements?: Insurable Interest Utmost Good Faith Indemnity 2. Explain the meaning and disadvantage of the following approaches: Avoid- ance of Risk & Control of Risk: Avoidance: Avoidance means that...

The Florida Surplus Service Lines Office (FSLSO) was created to - Answer- oversee the surplus lines industry in the state Which of the following is NOT a required qualification for a General Lines Agent: - Answer- Seeking the license only to write controlled business The Department of Financial Services performs the following, EXCEPT: - Answer- Pays insurance claims Once license, you have how long to obtain an appointment? - Answer- 48 months Which of the following is NOT a duty of t...

How can Insurance companies can afford to pay for an individual's catastrophic loss? Correct Answer The premiums from all policyholders are pooled together. What information is found on the Declarations page? Correct Answer contains the make and model of the covered vehicle described Steven was denied coverage, a jury decieded in his favor. Why are insurance policies considered "Contracts of Adhesion"? Correct Answer Policy language is open to legal interpretation. Susan is a Doctor,...

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - ANSWER Upon completion of the application Who elects the governing body of a mutual insurance company? - ANSWER policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ANSWER Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their ri...

Which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business Correct Answer knowing that his family is depending on him, Frank wants to insure his ow...

Test Bank for Business Law: Text and Cases, 15th Edition, Kenneth W. Clarkson, Roger LeRoy Miller, ISBN: 9630 Table of Contents UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS. 1. Law and Leg al Reasoning. 2. Business and the Constitution. 3. Ethics in Business —Appendix to Chapter 3: Costco Code of Ethics. 4. Courts and Alternative Dispute Resolution. 5. Court Procedures. Unit One: Task-Based Simulation – Application and Ethics: Arbitration, No Class Actions. UNIT TWO: TORTS AND CRIMES. 6. Tort...