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Law of Large Numbers -The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. Insurance - Transfers the risk of loss from an individual or business entity to an insurance company The three elements of insurable risk are - 1) Financial 2) Blood...

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? - Aleatory: an aleatory contract means unequal amounts are exchanged between payments and benefits W...

Basic Hospital Expense Coverage - Surgeon's fees are NOT covered under... Hospital expense policies - ... cover hospital room and board, and miscellaneous hospital expenses, such as lab and x-ray charges, medicines, use of operating room and supplies, while the insured is confined in a hospital....

50/50 - Ray has an individual major medical policy that requires a coinsurance payment. Ray rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arranngement would be best for Ray? Single payment or periodic payments - Which two terms are associated d...

Agent/Producer - A legal representative of an insurance company Broker - An insurance producer not appointed by an insurer and whom represents the client Insured - A person covered by an insurance policy Insurance policy - A legal contract between a policyowner (and/or insured) and an insurance ...

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 Applicants (or proposed insured) - a person applying for insurance Broker - an insurance producer not appointed by an insurer a...

To be considered an insurable risk, a loss may NOT be - catastrophic Which of the following persons would be required to hold a producer license? - a nonresident agent who negotiates insurance contracts Which of the following is the oldest known type of insurance? - ocean marine The contents cov...

Accelerated benefits - riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses accident - an unplanned, unforeseen event which occurs suddenly at an unspecified place Accidental Death and Dismemberment - an insurance policy w...