Life & Health Pre Licensing Study Guide Exam And 100% Accurate Answers.
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Course
Maryland life prelicensing
Institution
Maryland Life Prelicensing
Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss)
Pure - only possibility of loss (Death, Illness)
Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance
Reimbursement contract - Answer pays back certain $$ based o...
Life & Health Pre Licensing Study Guide
Exam And 100% Accurate Answers.
Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss)
Pure - only possibility of loss (Death, Illness)
Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance
Reimbursement contract - Answer pays back certain $$ based on loss (Auto Insurance)
Third Party Contract - Answer Policy owned by someone other than the insured - husband buys life ins
on wife
Peril - Answer cause of a loss - fire flood
Hazard (2) - Answer Increase chance of risk
Moral hazard - lie misrepresent
Morale Hazard - risk taker careless
Method to Manage Risk - Answer ARRT
AVOID.RETAIN.REDUCE.TRANSFER
Pooling Concept - Answer looking at groups of individuals to make predictions of potential losses
Law of Large Numbers - Answer larger the group more accurate predictions
Exposure Unit - Answer the person/property being considered
, Indemnify - Answer Return one to economic position enjoyed prior to the loss - not to profit from -
(reimburse)
Ascertainable - Answer dollar amount that can be placed on the loss
needs approach - Answer life insurance uses needs approach. what are the needs of the family left
behind
- disability insurance for: admin worker or Doctor
- health insurance for: someone in GA or NY City
Contestable Clause - Answer Loss must be uncertain - not on purpose FRAUD
suicide w/i first 2 years not covered, premiums returned. AFTER 2 years incontestable claim is paid
Insurable Interest - Answer Insured must have an insurable interest (old lady nursing home)
3 types of Insurers - Answer Private commercial companies / Private non commercial/ gov. non profit
Commercial Insurers - Answer stock insurance companies - owned by stock holders - non participating -
taxable dividends (Profit)
Mutual Company - Answer Owned by policy holders - participating - dividends non taxable (return of
overcharged premium)
non commercial insurers - Answer Reciprocal Fraternal Lloyds Assessment Reinsurance
Reciprocal Insurance - Answer unincorporated members called subscribers pay into own account each
is charged fair share for loss by another subscriber. Managed by Attorney-in-Fact (mustang club)
Fraternal Insurers - Answer The Shriners - Members have responsibilities - access to insurance non
profit
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