Exam (elaborations)
Illinois Life Insurance Exam With complete solutions 2024_2025
- Course
- Institution
Illinois Life Insurance Exam With complete solutions 2024_2025
[Show more]
Content preview
Illinois Life Insurance Exam With completesolutions 2024/2025
Transfer of Risks - ANSWER-Through insurance individuals transfer to insurance
companies financial risk they cannot individually afford
Pooling of risks - ANSWER-when a large group of people contribute money to a
fund out of their losses can be paid
Premium - ANSWER-The money paid by the policyowner to the insurance
company in exchange for the policy
Lapse - ANSWER-When a policy is terminated due to non-payment of premiums
Policyowner - ANSWER-The person or organization that applies to the policy and
pays the premiums. Can also be known as a policyholder.
Insured - ANSWER-The person at whose death the insurance company will pay
benefits to a beneficiary
Beneficiary - ANSWER-The person or organization to whom the benefits are
payable to at the death of the insured
Rider - ANSWER-A form that can be added to an insurance policy. It is usually
added for an extra premium chard to add coverage. It can however sometimes be
added to limit coverage.
, Actuarial tables - ANSWER-statistical tables that are used when calculating
premium rates and mortality loss reserves. They tell insurance companies how
many claims are likely to be made each year enabling the insurance companies to
estimate what their losses will be.
Mortality actuarial tables - ANSWER-actuarial tables that tell the insurance
companies how many people fo each age and sex are likely to die each year
Law of large numbers - ANSWER-says that the more people that an insurance
company insures, the more accurate the actuarial tables will become and the
losses will become more predictable and manageable
Premature death - ANSWER--dying before the normal age according to the
mortality actuarial tables
-also dying with unsatisfied financial responsibilities to either family or creditors
Premature death - ANSWER-through life insurance policies, which are issued y
life insurance companies, insureds transfer to insurance companies the financial
risks of premature death in a defined amount.
4 premature death risks - ANSWER--loss of income
-unsatisfied major obligations (debts)
-Incomplete financial goals (child Educ, fin security, spouse independence.)
-final expenses (funeral, burial, illness or injury, taxes, unpaid bills, legal, taxes).
Final expenses can be paid at an individual's death in 4 ways - ANSWER--in cash
out of the decease's personal savings
-borrowing
-by liquidating property, investments, business
-life insurance benefits (timely, immediate estate, discounted dollars, avoid
probate, tax advantages)
Life annuity - ANSWER-protects an individual against the financial risk of
outliving a normal life expectancy according to the mortality actuarial tables and
running out of money in old age
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 tuition. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now