PA LIFE INSURANCE LATEST VERSION
GRADED A+
Insurance created as a practical means to reduce the financial impact of an unexpected loss.
life insurance transfers to a life insurance company the risk of financial loss resulting from
the death of an insured person. The life insurance company...
PA LIFE INSURANCE LATEST VERSION GRADED A+ Insurance ✔✔created as a practical means to reduce the financial impact of an unexpected loss. life insurance ✔✔transfers to a life insurance company the risk of financial loss resulting from the death of an insured person. The life insurance company guarantees to pay a specified amount of money to a beneficiary when the insured dies. annuity ✔✔A cash contract between a person (the annuity owner) and a life insurance company (the annuity issuer). The annuity is set up to accumulate and/or distribute a sum of money. beneficiary ✔✔person or persons designated to receive benefits from insurance policy or annuity. health insurance ✔✔helps to lessen the financial impact of an insured's illness or disability by transferring the risk to a health insurance company . property and casualty insurance ✔✔covers damage to a loss of property such as a home or automobile by compensating the insured for the amount of the loss or by providing a specific sum of money according to the the terms of the insurance policy agents ✔✔producers, legally considered representatives of the insure that employs them, risk ✔✔the c hance of loss loss ✔✔an unwelcome and unplanned reduction in economic value` pure risk ✔✔involves only the chance of a loss, and no gain to the person assuming the risk, including untimely death or serious illness or disability of a person. (insurable) speculative risk ✔✔results in loss or gain. examples include: gambling and investing in the stock market. (uninsurable) direct loss ✔✔immediate result of an event involving an insured peril. example: death of a family breadwinner indirect loss ✔✔more rem ote, example: loss of a decedents income is an indirect loss resulting from the direct loss of the insured's life. exposure or loss exposure ✔✔state of being subject to a possible loss. example: a coal miner is generally exposed to a greater risk of death than an accountant, therefore a higher premium would be charged to insure the coal miner. exposure units ✔✔basis for each applicants premium. example: a life insurer will assign more exposure units to an applicant who is a coal miner than one who is an a ccountant. peril ✔✔immediate cause of a loss, example: death, disability and accidental injuries or sickness. hazard ✔✔a condition that raises the chance of encountering a peril or increases the severity of a loss. moral hazards ✔✔an individuals traits or habits that increase the chance of a loss. examples: alcoholism, smoking and drug addiction.
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