MN Life and Health Insurance Bundled Exams with complete solution

Insurance - Transfer of risk to the Insurer Speculative Risk - Risk that can have either gains or losses Pure Risk - Risk that can only see losses Loss - Reduction in the value of something Exposure - Risks the Insurance company is exposed to Peril - Cause of loss Hazard - Anything that increa...

Insurance is a... - transfer of risk What type of risk is gambling? - Speculative Risk What type of risk is a car accident? - Pure Risk What type of risk is insurable? - Pure Risk uncertainty about whether a loss will occur - Risk Risk Management Method Acronym - STARR (sharing, transfer, avoid...

Beneficiary Protection from Creditors - If beneficiary eligible to receive death benefit but chooses to leave part/all on deposit with insurer, money is protected from claims of the beneficiaries creditors. Policyowner Rights - Spendthrift provision: Gives insurer the right to hold back proceeds ...

Ordinary Life - Several types of individual life ins Temporary term permanent whole universal, variable other interest sensitive plans Term life insurance - provides only a death benefit within a specified period of time whole life - provides death and living benefits Industrial Life encompass...

The initial amount of credit life insurance may NOT exceed A-The borrower's annual income. B-The amount to be repaid under the contract. C-An amount set by statute and adjusted regularly for inflation. D-The borrower's monthly income. - Answer B This state provided for a temporary license for...

How are employee FICA taxes collected? - The employer withholds the employee's tax and pays it along with the employer's portion Mateo applies for an insurance policy that will have an annual premium payment of $1,000 ($510 semiannually, $260 quarterly, and $100 monthly) if issued. Which of the ...

Speculative Risk - involves the chance of loss or gain, and is not insurable Pure Risk - involves the chance of loss only, and is insurable Peril - Something that causes a direct loss Physical Hazard - Visible (Black ice) Moral Hazard - dishonest tendencies (Fraud) Morale Hazard - Carless, Irre...

The commissioner examines each insurer every ___ Years. - 5 years $____ fine per day if a person violates, aids, or abets a written cease and desist order - $10,000 License fee may request a hearing within ____ days of commissioners order. After hearing request, Commissioner has ____ days to hold...