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After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? - ANSWER File written proof of loss Which of these factors help determine an insured's life insurance premium? - ANSWER Avocation (hobby)

What type of reinsurance contract involves two companies automatically sharing their risk exposure? - ANSWER Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - ANSWER reserves

Hazard - ANSWER Situation that increases chance of loss Annuity - ANSWER Policy issued by an insurance company to promise you an income that can last you a lifetime Insurer - ANSWER An insurance company

All of the following are included as part of a contract in the entire contract provision EXCEPT the riders application changes made by the producer policy - ANSWER changes made by the producer Health insurance involves two perils, accident and ____. - ANSWER sickness

Absolute Assignment - ANSWER The assignment by the policy owner of all control and rights to a third party. This differs from collateral assignment, which allows all the rights and control to revert to the owner once a loan is paid off Accident - ANSWER A fortuitous event; unforeseen

The Commissioner must approve - ANSWER Continuing education courses Employer sponsored group health insurance provides coverage for which of the following? Self-inflicted injuries cosmetic surgery custodial care

The systematic liquidation of a sum of money is provided by a(n) - ANSWER annuity An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? - ANSWER Variable annuity

UNIT 1: The term used to describe the individual who is covered by the insurance is A. insurer B. insured C. policyowner D. risk - ANSWER B Which of the following is a risk? A. A car may need to have new brakes installed after several years of regular driving.

Insurance policies are considered aleatory contracts because: 1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud - ANSWER Performance is conditioned upon a future occurence, because there is an element of chance and potential for unequal exchange of value K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which th...

Your license will be considered to be inactive when you: - ANSWER No longer have any appointments On a "participating" health insurance policy issued by a mutual insurance company, dividends paid to policy holders are: - ANSWER Not taxable since the IRS treats them as a refund of a portion of the premium