1. Group Insurance: - the employer is the owner and
receives the master contract
- the employees are certificate holders
which outlines the details of it
- underwriting is much more liberal
because its a large group and probably
wont have adverse selection
- if you want to get in at another time,
employee has to show insurability
2. What do you need to get Social Secutiry: - You have to work for 40 qtrs
or 10 years
3. Insurance Definition: - Transfer of risk from 1 party to another
- To provide funds for medical expenses
due to sickness or injury and to cover
loss of income during a disability
,4. Indemnity: - To restore or make whole again
- To bring back to the same condition
they had prior to loss
5. Risk: - the uncertainty or chance of loss
6. Mortality: - The number of deaths
- helps determing premium
7. Morbidity: -The number of disabled due to
accident or sickness
8. Pure Risk: - Chance of loss without any chance of gain
- only pure risk is insurable
9. Speculative Risk: - Chance of loss or gain
10.What kind of Risks are insurable: - loss must be accidental
- loss must be definite (or measurable)
- must not be catastrophic
- must be great enough to create
economic hardship
- premiums must be reasonable
11.Retention: -The personal acceptance of the loss
12.Peril: - The cause or source of a loss
,13.Hazard: - increases the chance of a loss
14.What are the 3 types of Hazards: - Physical
- Moral (dishonesty)
- Morale (carelessness)
, 15.Underwriting department: - Responsible for the selection of risks to
insure and determines the rate to be charged for
coverage
16.Types of Insurance Companies: - Stock Companies (non-participating)
- Mutual Companies (participating)
- Fraternal Organization
- Reciprocals and Assessment Insurers
- Self-Insurers
17.Domestic Insurance Co: - located in the state it's doing business in
18.Foreign Insurance Co: - allowed to do business in a state other
than their home state
19.Alien Insurance Co: - authorized to conduct business in any of
the 50 states but who has its home office in another
country
20.Cerrtificate of Authority: - What an insurance company needs to
have in order to operate in a state
21.Fraternal Organization: - A non profit association and only can
provide insurance to its members.
22.Reciprocal Organization: - A type of cooperative insurance.
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