Exam (elaborations)
HOW TO PASS VIRGINIA LIFE INSURANCE AND ANNUITIES NEW EXAM
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HOW TO PASS VIRGINIA LIFE INSURANCE AND ANNUITIES NEW EXAM
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HOW TO PASS VIRGINIA LIFE INSURANCE AND ANNUITIES NEW EXAM Methods of Handling Risk (STARR) - 1. Sharing (each member of group pays portion of loss) 2. Transfer (spreading risk among customers) 3. Avoidance (not engaging in certain activity) 4. Reduction (lessening chance) 5. Retention (indiv pays for loss) Elements of Insurable Risk (CANHAM) - 1. Calculable (based on prior loss stats) 2. Affordable (for avg consumer) 3. Non -catastrophic (no widespread loss events) 4. Homogeneous (similar indiv risks) 5. Accidental 6. Measu rable ($ amt) Types of Insurers (7) - 1. Stock insurer 2. Mutual insurer 3. Fraternal benefit societies 4. Reciprocal insurers 5. Risk retention groups 6. Lloyd's Associations 7. Self -insurers Classification of Insurers: Private v. Gov't - -Gov't include s SS, military life insurance, residual market insurance -Subsidize insurance programs to cover for catastrophic risk Classification of Insurers: Domestic, Foreign, and Alien - 1. Domestic: insurer located in state where they are incorporated 2. Foreign: insurer sells in states other than where they are incorporated 3. Insurer formed under laws of country outside of US Classification of Insurers: Authorized v. Unauthorized - 1. Authorized: company is licensed (has Cert of Authority) to sell insurance in that state 2. Unauthorized: sell certain types of insurance (surplus) w/o having license Classification of Insurers: Surplus Lines Insurers - unauthorized insurers that provide insurance for indivs with large risk that no other authorized insurer will cover Types of Agents (4) - 1. Independent Insurance Agents (represent the insured of several companies) 2. Exclusive/c aptive Agents (represent 1 insurer) 3. General Agents/Managing General Agents: hire/train/supervise other agents 4. Direct -writing Companies: no independent agents, they all work for the insurer Agent Authority - 1. Express 2. Implied: not written, but actions agent normally do to sell insurance 3. Apparent: actions by agent that a reasonable person would assume as authority Elements of a Legal Contract (CLOAC) - -Consideration -Legal Purpose -Offer -Acceptance -Competent Parties Characteristics of Insurance Contracts (12) - 1. Adhesion 2. Aleatory 3. Utmost Good Faith, Reasonable Expectation 4. Unilateral 5. Personal 6. Conditional 7. Indemnity 8. Representations, misrepresentations, warranties 9. Concealment 10. Fraud 11. Fraud a nd False Statements 12. Waiver and Estoppel Underwriting Application Parts (3) - 1. General Information 2. Health Information 3. Producer's Report Medical Information Bureau (MIB) - -maintains underwriting info on applicants -all member companies have a ccess -reduces misrepresentation/fraud -can't be sole criteria for underwriting decisionThe benefits of buying summaries with Stuvia:
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