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Massachusetts Life and Health Insurance Exam 100- SURE ANSWERS_.pdf
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9/25/24, 8:43 PMMassachusetts Life and Health Insurance Exam
jeremiah
Practice questions for this set
Terms in this set (381)
Insurance Transfer of Risk
Risk Uncertainty/ Possibility of Loss
Exposure Risks for which the insurance company would be liable
Peril Cause of Loss
Hazard Something that causes an increase in the chance of loss
Massachusetts Life and Health Insurance Exam
Physical Hazard Hazard that can be seen
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Moral Hazard A belief that intentionally causing a loss is acceptable
Morale Hazard Carelessness
STARR Method of handling risk
S- Method of handling risks Sharing
T- Method of handling risk Transfer
A- Method of handling risk Avoidance
R- Method of handling risk Retention
R- Method of handling risk Reduction
Contract Policy An agreement between the insured and the insurer
Law of Large Numbers The larger the group, the more accurate losses can be predicted
CANHAM Risks Can be insured with the following characteristics
C- CANHAM Risks Calculable
A- CANHAM Risks Affordable
N- CANHAM Risks Non- Catastrophic
H- CANHAM Risks Homogeneous
A- CANHAM Risks Accidental
M- CANHAM Risks Measurable
Adverse Selection risks that have a greater than average chance of loss
Reinsurance- An insurance company sells some of its risk to other insurance companies.
Facultative Reinsurance the reinsurer evaluates each risk before allowing the transfer
Treaty Reinsurance the reinsurer accepts the transfer according to an agreement called a treaty
An insurer that is owned by its stockholders and formed as a corporation for the
Stock Insurer
purpose of earning a profit for the stockholders.- Issues Non Par Policies
An insurer that is owned by its policyholders and formed as a corporation for the
Mutual Insurer
purpose of providing insurance to them.- Non Taxable dividends & Participating Polcies
provides insurance and other benefits
Fraternal Insurer
must be a member of the society to get the benefits
unincorporated groups of people that provide insurance for one another through
Reciprocal Insurers
individual indemnity agreements
Organizations that provide support facilities for underwriters or groups of individuals
Llyod's Associations
that accept insurance risk.
A liability insurance company owned by its members, which are exposed to similar
Risk Retention Group
liability risks by virtue of being in the same business or industry.
Groups of people with similar insurance needs who form an organization to buy
Risk Purchasing Groups
insurance as a group.
Self-insurance a business that pays its own claims
Residual Market insurance from the state or federal government
Insurance Company Locations Domestic, Foreign, and Alien
Certificate of Authority state license for an insurance company
Admitted or Authorized state requires the insurance company to have a certificate of authority
Massachusetts Life and Health Insurance Exam
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