UCanPass Primerica VA Exam Guide 2024
Agent/Producer - a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer
Applicant or purposed insured - A person applying for insurance
Broker - An insurance producer not appointed by and insurer and is deemed to represent a client
Insurance policy - A contract between a policyowner (and/or insured) and insurance company which agrees to pay e insured or the beneficiary for loss caused by specific events
Insured - The person covered by the insurance policy. This person may or may not be the policyowner
Insurer(principal) - The company who issues an insurance policy
Policyowner - The person entitled to exercise the rights and privileges in the policy
Premium - The money paid to the insurance company for the insurance policy
Reciprocity/Reciprocal - A mutual interchange of right and privileges
Insurance is the _______ of risk. Insureds' losses are transferred over to the insurer - Transfer
Risk - Uncertainty or or chance of a loss occurring
Pure risk - Refers to situations that can only result in loss or no change
Speculative risk - Involves the opportunity for either loss or gain
Only _______ risks are insurable - Pure
Exposure - Unit of measure used to determine rates charged for insurance coverage
Homogeneous - A large number of units having the same or similar exposure to loss
Hazard - Condition or situations that increase the probability of an insured loss occurring
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