Fred Loya Insurance Test with with Questions Solved 100% with Correct Answers
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Course
Fred Loya Insurance
Institution
Fred Loya Insurance
risk - Uncertainty concerning the occurrence of a loss
Exposure - what the insured is exposing to the insurer to
premium calculations - the higher the risk is, the greater the premium
Speculative Risk - a risk in which there is a chance of either loss or gain
pure risk - is insurable. it is whe...
Fred Loya Insurance Test with with Questions Solved 100% wi th Correct Answers risk - ✔Uncertainty concerning the occurrence of a loss Exposure - ✔what the insured is exp osing to the insurer to premium calculations - ✔the higher the risk is, the greater the premium Speculative Risk - ✔a risk in which there is a chance of either loss or gain pure risk - ✔is insurable. it is when you can only lose, not win. ARRTS - ✔Avoi d, Reduce, Retain, Transfer, share Deductible - ✔An amount the insured must pay before benefits become payable by the insurance company. hazard - ✔risk, peril; to expose to danger or harm; to gamble peril - ✔the cause of a possible loss loss - ✔physical destruction or reduction in vale of an item Direct loss - ✔damage to the item itself, like wrecking your car indirect loss - ✔loss of u se of the item , a consequence of the direct loss. ex: if you wrecked your car, you would have to rent one. indemnity - ✔what insurance does... it puts you back where you were before the loss. indemnify means to pay you back. underwriters - ✔they are the "risk selectors". they choose who to insure based on the qualities of the risk. adverse selection - ✔what the underwriters want to avoid. they only want the best risks to insure, not ones that would be guaranteed to have a loss Law of Large Numbers - ✔used by actuaries to determine statistics and then rates for insurance. it takes money of the many to pay the losses of the few limits on auto policies can be split limits - ✔when the limits available are split between paying one limit for bodily injury cl aims and a separate limit for property damage claims. texas minimum auto limits - ✔~25,000 for bodily injury to one person in other guy's car. ~50,000 for bodily injury for all persons in other guy's car. ~25,000 for property damage done to other propert y. Accident - ✔an incident that happens at a definite time and place general rules of agency - ✔when an insurance company gives the agent the right or authority to sell their products. Express Authority - ✔What the company ( the principal) gives you in a contract. it can be oral or written authority.
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