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EXAM FX - WISCONSIN LIFE EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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EXAM FX - WISCONSIN LIFE EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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EXAM FX - WISCONSIN LIFE EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONSagent/producer - Precise Answer ✔✔legal representative of insurance
company
Applicant or proposed insured - Precise Answer ✔✔a person applying
for insurance
beneficiary - Precise Answer ✔✔one who receives benefits of insurance
policy
Death Benefit - Precise Answer ✔✔The amount payable upon the death
of the person whose life is insured.
insurance policy - Precise Answer ✔✔a written contract between the
insured and an insurance company that promises to pay for all or part of
a loss
Insured - Precise Answer ✔✔the person or business for which the
insurer assumes the risk
Insurer (principal) - Precise Answer ✔✔the company who issues an
insurance policy
,life insurace - Precise Answer ✔✔coverage that pays the amount of
money to the business in the case of the owners death
Policyowner - Precise Answer ✔✔the person entitled to exercise the
rights and privileges in the policy
Premium - Precise Answer ✔✔A specific sum of money paid by the
insured to the insurance company in exchange for financial protection
against loss.
Reciprocity - Precise Answer ✔✔a mutual interchange of rights and
privileges
insurance is a _________ of risk - Precise Answer ✔✔transfer
risk - Precise Answer ✔✔The chance of loss from an event that cannot
be entirely controlled
Pure Risk - Precise Answer ✔✔A situation in which there are only the
possibilities of loss or no loss
Speculative Risk - Precise Answer ✔✔Chance of loss or gain
only _________ risks are insurable - Precise Answer ✔✔pure
,exposure - Precise Answer ✔✔A unit of measure used to determine
rates charged for insurance coverage.
4 factors considered in determining rates - Precise Answer ✔✔age of
insured, medical history, occupation, sex
homogeneous - Precise Answer ✔✔a large number of units having the
same or similar exposure to loss
Hazards - Precise Answer ✔✔Conditions or situations that increase the
probability of an insured loss occurring.
Physical Hazard - Precise Answer ✔✔individual characteristics that
increase the chances of the cause of loss (physical conditions - past
medical history, condition at birth etc)
Moral Hazard - Precise Answer ✔✔the tendency for people to behave in
a riskier way or to renege on contracts when they do not face the full
consequences of their actions. Involves evaluating the character and
reputation of the proposed insured
Morale Hazard - Precise Answer ✔✔A condition of carelessness or
indifference that increases the frequency or severity of loss.
peril - Precise Answer ✔✔causes of loss insured against in an insurance
policy
, health insurance - Precise Answer ✔✔Insurance that covers medical
illness or injury.
Property Insurance - Precise Answer ✔✔insures against the loss of
physical property or the loss of its income-producing abilities
Casualty Insurance - Precise Answer ✔✔Insurance that provides
monetary benefits to a business that has experienced an unforeseen peril
such as flood, fire, etc.
loss - Precise Answer ✔✔The reduction, decrease, or disappearance of
value of the person or property insured in a policy, by a named peril
insured against.
a ___________ is a chance that a loss will occur, a ________ increases
the probability od a loss, a ______ is the cause of a loss - Precise
Answer ✔✔risk, hazard, peril
Avoidance - Precise Answer ✔✔eliminating exposure to a loss
retention - Precise Answer ✔✔Planned assumption of risk by an insured
through the use of deductibles, co-payments, or self-insurance.
Purpose of retention - Precise Answer ✔✔1) reduce expenses
2) increase control of claim reserving hand claims settlements
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