MN LIFE ACCIDENT & HEALTH PRODUCER EXAM / TEST REVIEW QUESTIONS & CERTIFIED SOLUTIONS / 100%
CORRECT / ALREADY GRADED A+.
Stretch your brain before your first study session Terms in this set (158) Learn / 71Study with Learn
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Choose matching term 1Certificate of Insurance2Mutual insurers 3Insurance4 life insurance policies may be backdated up to Don't know?Speculative Risk involves the chance of loss or gain, and is not insurable Pure Riskinvolves the chance of loss only, and is insurable 1 / 3
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PerilSomething that causes a direct loss Physical HazardVisible (Black ice) Moral Hazarddishonest tendencies (Fraud) Morale HazardCarless, Irresponsible (leaving keys in car) Exposuresusceptibility to loss Adverse selection those with high risk situations attempt to purchase insurance before those with average or below- avg. risk InsuranceThe transfer of risk from one to many Pooling of RiskA large reserve of money available to pay claims Law of Large numbers the accuracy of the insurance companies loss projections will increase, need large numbers in order to predict accurate predictions Certificate of Insurance -used after policy is issued -contains summary of policy coverage & limits -required in loan transactions and other matters
DeductiblesStraight: the insured pays a certain amount owe loss before
the insurer is required to make a payment Aggregate: the
insured pays for all losses until they exceed a certain amount
(apply per policy period) Corridor: is applied before benefits
under major medical plans are paid, happens middle of deductible
Elimination period: used w/ disability income policies
& long term care insurance
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