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Accident and Health Insurance Agent Practice Exam GRADED A+ (ACTUAL EXAM ) Questions and Answers (Solved)
- Group Insurance
Answer:
- the employer is the owner and receives the master contract
- the employees are certificate holders which outlines the details of it
- underwriting is much more liberal because its a large group and probably wont
- if you want to get in at another time, employee has to show insurability
have adverse selection
- What do you need to get Social Secutiry
Answer: - You have to work for 40 qtrs or 10 years
- Insurance Definition
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
Answer:
- To restore or make whole again
- To bring back to the same condition they had prior to loss
- Risk
Answer: - the uncertainty or chance of loss
- Mortality
Answer:
- The number of deaths
- helps determing premium
- Morbidity
Answer: -The number of disabled due to accident or sickness
- Pure Risk
Answer:
- Chance of loss without any chance of gain
- only pure risk is insurable 1 / 3
- Speculative Risk
Answer: - Chance of loss or gain
- What kind of Risks are insurable
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
Answer: -The personal acceptance of the loss
- Peril
Answer: - The cause or source of a loss
- Hazard
Answer: - increases the chance of a loss
- What are the 3 types of Hazards
Answer:
- Physical
- Moral (dishonesty)
- Morale (carelessness)
- Underwriting department
Answer: - Responsible for the selection of risks to insure and determines the rate to be charged for coverage
- Types of Insurance Companies
Answer:
- Stock Companies (non-participating)
- Mutual Companies (participating)
- Fraternal Organization
- Reciprocals and Assessment Insurers
- Self-Insurers
- Domestic Insurance Co
Answer: - located in the state it's doing business in 2 / 3
- Foreign Insurance Co
Answer: - allowed to do business in a state other than their home state
- Alien Insurance Co
Answer: - authorized to conduct business in any of the 50 states but who has its home office in another country
- Cerrtificate of Authority
Answer: - What an insurance company needs to have in order to operate in a state
- Fraternal Organization
Answer: - A non profit association and only can provide insurance to its members.
- Reciprocal Organization
Answer: - A type of cooperative insurance. Each policyholder is insured by all other policyholders.
- Reinsurance
Answer:
- Insurance between insurers
- limits liability and prevents catastrophic loss
- An agent has 3 types of authority
Answer:
- Expressed authority
- Implied Authority
- Apparent authority
- Expressed Authority
Answer: - Written in a producer's contract
- Implied Authority
Answer: - What the public assumes the agent possesses
- Apparent Authority
Answer: - When a producer oversteps actual authority
- The law of contracts - 4 elements of a contract
Answer:
- Agreement
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