Exam (elaborations)
Maternal child nursing care 3rd canadian edition keenan lindsay test bank 2024
Maternal child nursing care 3rd canadian edition keenan lindsay test bank 2024
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
Florida Insurance 2-14 Exam Terms1. Insurance: Financial protection against loss or harm - An arrangement by
which company gives customers financial protection against loss or harm such
as theft or illness in return for premium payments.
2. Life Insurance: Is based on actuarial or mathematical principles and
guarantees a specified sum of money upon the death of the person who is
insured.
3. Annuities: Provide a stream of income by making a series of payments to the
annuitant for the annuitant's lifetime or for a specifically designated period of
time.
4. Risk: Uncertainty regarding loss; the probability of loss occurring for an insured
or prospect
5. Speculative Risks: Involve the possibility of loss and gain. (Not Insurable)
6. Pure Risks: Involve the possibility of loss only. (Insurable)
7. Peril: Cause of risk (when a building burns, fire is the peril)
8. Hazards: The source of danger
9. Physical Hazard: A hazard being of physical nature.
A person being treated of cancer, the disease is the physical endangerment.
(Blindness & deafness)
10. Risk Avoidance: Occurs when individuals evade risk entirely. "If you don't
drive, then you avoid getting in an auto accident."
11. Risk Reduction: Takes place when the chances of loss are lessened.
Changing a lifestyle to minimize a known risk.
12. Risk Retention: Being aware of the risks involved and taking precautions for
financial protection. Auto policy's deductible is an illustration of risk retention
13. Risk Transference: The act of shifting the responsibility of risk to another in
the form of an insurance contract.
14. Adverse Selection: Refers to the tendency for those individuals who present
less favorable insurance risk to seek or continue insurance to a great extent
than other risks.
15. Insuring Pure Risk: Loss must be due to chance
Loss must be definite and measurable
Risk must be predictable
Loss must NOT be catastrophic
Exposure to loss must be large
, .
Loss exposures must be randomly selected
16. Mutual Insurers: Participating policies
Owned by policyholders
Vote for directors and trustees
Directors and management have control
Typically higher rates
17. Assessment Mutual Insurers: Prohibited in Florida
18 Pure Assessment Mutual Company: Don't pay premium and total loss is
divided among members
19. Lloyds of London: NOT considered an insurance company
- An association of individuals and companies that individually underwriter
insurance.
20. Fraternal Benefit Societies: Must be nonprofit, have a lodge system, and
offer insurance to its members only
21. Home Service Insurer: Insurer that offers relatively small policies with
premiums payable on a weekly basis.
22. Captive Agents: A.k.a. Career agents
Works for only one insurer and sells only that insurers products
23. Independent Agents: Is self-governing and actually works for himself. This
affords him the versatility to represent several insurers and their different
insurance products.
24. Special Agents: Usually not license and don't sell insurance. Assist insurance
companies field representatives.
25. Career Agency System: (GA) - Build sales staffs and agents are treated as
employees. They are recruited and trained. A principal of the company
supervises agents.
26. Personal Producing General Agency System: (PPGA) - The agent supplies
his own working environment. Agents hired by a PPGA are considered
employees of the PPGA, not the insurance company, and are supervised by
the regional salary.
27. Independent Agency System: Agents represent several insurers through
signed contracts and are paid on commission or fee basis, not through salary.
28. Regulating the business of insurance: Legislation
The Court System
State Insurance Departments
,29. Paul v. Virginia: - State tried to control insurance domiciled from another
state.
- U.S. Supreme Court sided against insurance company
- Upholding the right of sate to regulate insurance
- States WIN
30. United States v. Southeastern Underwriters Association (SEUA): - Ruling
is a form of interstate commerce
- Should be regulated by the federal government
- Fed Gov. WINS
31. The McCarran-Ferguson Act: - Gave back some regulatory authority to the
states
- Did not provide the states to regulate individually
- Insurance regulated by state law "is in the publics best interest"
32 Intervention by SEC: - Dealing with variable annuities
- Securities and Exchange Commission (SEC) should regulate the variable
annuities (since they're used for investments) & variable life insurance.
- Therefore, agents must obey the rules to both SEC and state regulation.
33. Fair Credit Reporting Act: - Fair and accurate report of information about
consumers
- Insurers must inform them about any investigations being made
- Then insurers must let the applicants know the name of the reporting agency
34. Financial Services Modernization Act: - Revoking the Glass-Steagall Act -
This changed the industry so commercial banks, investment banks, retail
brokerages, and insurance companies can now enter each other's lines of
business
35. Admitted insurance company: - Office of Insurance Regulation has licensed
them to carry out business in Florida
36. Nonadmitted Insurance Company: - Have not been licensed by the the
Florida
Office of Insurance Regulation
37. Policy Replacement: - An action which eliminates the original policy or
diminishes its benefits or values
38. Bad policy remplacement issues: - Most the first year's premium is
consumed by the commission
- The premium is higher due to the insured's advanced age
, .
- Waiting periods begin anew
39. Misuse of Premiums: - Improper use of premiums collected by an insurance
producer
- Depositing a client's premium in own personal account
40. Rebating: - Florida and California are the only two states that allow rebating -
When any part of commission or anything else of value is given to the insured as
a incentive to buy a policy
- Agent must keep copies of rebating schedules for five years
41. NAIC: - National Association of Insurance Commissioners
- No legal power of its own
- Encourages uniformity in state insurance laws and regulations
42. Florida Insurance Guaranty Association: - Funded by insurance companies
through assessments
-FIGA is part of a non-profit,
- Guaranty associations protect policyholders and claimants.- Holds three
separate accounts:
- Health Insurance
- Life Insurance
- Annuity Accounts
43 NAIFA: - National Association of Insurance and Financial Advisors (NAIFA)
- Designed to protect agents
- Dedicated to supporting life insurance industry
44. A.M. Best Rating Agency: - Profitability, leverage, & liquidity
- A++ to F and S (suspended)
45. Standard and Poors (S&P) Rating Agency: - Claims and the ability to
pay - AAA to C to R
46. Moodys Investor Services Rating Agency: - Financial strength - Aaa
to C
47. Fitch IBCA (formerly Duff & Phelps): - Credit worthiness of securities -
AAA to CCC
48. Weiss Ratings, Inc.: - Strength and safety of financial institutions and
rates risk adjusted mutual funds and stocks
- A to F
49. Elements of Contract: Offer & Acceptance + Consideration + Legal Purpose
+
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KINGNOTES1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71498 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now