Alabama Life & Health Insurance Exam
1.Insurance is defined as the transfer of risk to the insurance company in consideration for a premium.: Pure
2.The chance of loss without any chance of gain is called : Pure Risk
3.has the possibility for gain or loss and is not insurable.: Speculative Risk
4.is defined as the chance of loss.: Risk
5.A condition that could result in a loss is known as: Exposure
6.is something that increases the chance of loss.: Hazard
7.The presence of a increases the chance of a loss occurring.-
: Physical Hazard .defined as a cause of loss, such as fire.: Peril
9.To be insurable, losses must be .: Calculable
10.allows insurers to predict claims more accurately.: Law of Large Numbers
11.The law of large numbers applies to .: Groups of people, not individuals
12.The law of large numbers applies to groups of people, not to individuals. The
more people in the group .: the more accurate the predic-
tions are
13.Most insurers buy to protect themselves in the event of a .: reinsurance , catastrophic loss
14.are not required to be uniform from one state to another.: Insurance laws
15.dividends to its shareholders (stockholders), but they may not be guaran- teed.: Stock insurer may pay .Stock insurers pay the dividends to its shareholders (stockholders), are they guaranteed.: No
17.A reciprocal insurance company is managed by an: attorney-in-fact
18.An unincorporated association of individuals who insure each other is known as a: Reciprocal Insurers
19.The government offers insurance primarily based upon: social needs, such as flood
insurance and workers compensation
20.The government offers insurance primarily based upon social needs and not: preventing fraud
21.company has their home office in another state: Foreign
22.company has their home office in another country: Alien
23.Key Person disability income policy, premium payments: Are made by the business and are not tax-deductible
24.Claims other than death benefits are to be paid to the ,
unless otherwise assigned by the insured.: insured or the insured's estate .An insurance contract is in that only one of the parties to the contract is legally bound to do anything.: unilateral
26.insurer: If forms are not furnished, written proof of the occurrence, nature of the loss, and extent of loss must be submitted to the
27.If a distribution is made for a reason other than to pay for qualified medical expenses, the amount withdrawn will be subject to an income tax and an additional: 20% tax
28.Medicare supplement policies (Medigap) do not cover the cost of: extended nursing home care
29.to fill the gap in coverage attributable to Medicare's deductibles, copay- ment requirements, and benefit periods. These plans are issued by private insurance companies.: Medigap plans are designed
30.to either continue group coverage and defer Medicare until retirement, or switch to Medicare.: If a person is still employed at the age of 65, he or she may choose
31.non-controlled business: The purpose of a license is to primarily write
32.When producer was reviewing a potential customers coverage written by another company the producer made several remarks that were maliciously critical of that other insurer. The producer count be found guilty of (oral or written remarks): Defamation
33.What policy characteristics of a Major Medical Expense don't EXCEPT: Low
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