Accident and Health Insurance Agent Practice Exam| 140 QUESTIONS AND ANSWERS ALL CORRECT

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Accident and Health Insurance Agent Practice Exam| 140 QUESTIONS AND ANSWERS ALL CORRECT Group Insurance Correct Answer: - the employer is the owner and receives the master contract - the employe... es are certificate holders which outlines the details of it - underwriting is much more liberal because its a large group and probably wont have adverse selection - if you want to get in at another time, employee has to show insurability What do you need to get Social Secutiry Correct Answer: - You have to work for 40 qtrs or 10 years Insurance Definition Correct Answer: - Transfer of risk from 1 party to another - To provide funds for medical expenses due to sickness or injury and to cover loss of income during a disability Indemnity Correct Answer: - To restore or make whole again - To bring back to the same condition they had prior to loss Risk Correct Answer: - the uncertainty or chance of loss Mortality Correct Answer: - The number of deaths - helps determing premium Morbidity Correct Answer: -The number of disabled due to accident or sickness Pure Risk Correct Answer: - Chance of loss without any chance of gain - only pure risk is insurable Speculative Risk Correct Answer: - Chance of loss or gain What kind of Risks are insurable Correct Answer: - loss must be accidental - loss must be definite (or measurable) - must not be catastrophic - must be great enough to create economic hardship - premiums must be reasonable Retention Correct Answer: -The personal acceptance of the loss Peril Correct Answer: - The cause or source of a loss Hazard Correct Answer: - increases the chance of a loss What are the 3 types of Hazards Correct Answer: - Physical - Moral (dishonesty) - Morale (carelessness) Underwriting department Correct Answer: - Responsible for the selection of risks to insure and determines the rate to be charged for coverage Types of Insurance Companies Correct Answer: - Stock Companies (non-participating) - Mutual Companies (participating) - Fraternal Organization - Reciprocals and Assessment Insurers - Self-Insurers Domestic Insurance Co Correct Answer: - located in the state it's doing business in Foreign Insurance Co Correct Answer: - allowed to do business in a state other than their home state Alien Insurance Co Correct Answer: - authorized to conduct business in any of the 50 states but who has its home office in another country Cerrtificate of Authority Correct Answer: - What an insurance company needs to have in order to operate in a state Fraternal Organization Correct Answer: - A non profit association and only can provide insurance to its members. Reciprocal Organization Correct Answer: - A type of cooperative insurance. Each policyholder is insured by all other policyholders. Reinsurance Correct Answer: - Insurance between insurers - limits liability and prevents catastrophic loss An agent has 3 types of authority Correct Answer: - Expressed authority - Implied Authority - Apparent authority [Show More]

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