Ohio Life and Health Insurance ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Exam Cram with correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The term describing the insured's notification to the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurer requesting payment for a covered loss is: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
b. Premium
||\\||\\
c. Claim
||\\||\\
d. Deductible - correct answers ✔✔An insurance claim is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the insured's notification to the insurer that a payment is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
requested for a covered loss. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: Claim
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Which of the following is the consideration an insured
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
pays for insurance coverage? ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Deductible
||\\||\\
b. Premium
||\\||\\
,c. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
d. Coinsurance - correct answers ✔✔Premiums are the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
cost of insurance coverage and the insured's ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
consideration.
The correct answer is: Premium ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Adverse selection is characterized by: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Unfair discrimination
||\\||\\ ||\\||\\
b. Rating risks||\\||\\ ||\\||\\
c. A healthy person purchasing health insurance
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
d. A sick person purchasing health insurance - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answers ✔✔Adverse selection is the tendency for poorer ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
than average risks to seek insurance. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: A sick person purchasing health
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance
Judith is injured in a car accident. She incurs a covered loss ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
of $50,000. She is required to pay $3,000 before the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
,insurer will cover 80% of the covered loss. Which of the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
following terms best describes the $3,000 Judith must ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
pay?
a. Premium ||\\||\\
b. Deductible ||\\||\\
c. Coinsurance
||\\||\\
d. Claim - correct answers ✔✔A deductible is the amount
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
an insured must pay before the insurer will begin to pay
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
benefits.
The correct answer is: Deductible ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Judith's health insurance will pay a maximum of $3 million ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
for all of her claims. Which of the following terms best
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
describes this policy feature? ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Indemnity ||\\||\\
b. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
c. Coinsurance
||\\||\\
, d. Claim - correct answers ✔✔A limit of liability is the total
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
amount the insurer will pay for an insured risk.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: Limit of liability
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The tendency for poorer than average risks to seek out
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance is the definition of: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Indemnity ||\\||\\
b. Reinsurance ||\\||\\
c. Adverse selection
||\\||\\ ||\\||\\
d. Coinsurance - correct answers ✔✔Insurers must
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
minimize adverse selection, which is defined as the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
tendency for poorer than average risks to seek out ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance.
The correct answer is: Adverse selection
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Cost-sharing between the insurer and the insured that is ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
often expressed as the percent for insurer and insured is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
known as: ||\\||\\
Exam Cram with correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The term describing the insured's notification to the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurer requesting payment for a covered loss is: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
b. Premium
||\\||\\
c. Claim
||\\||\\
d. Deductible - correct answers ✔✔An insurance claim is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the insured's notification to the insurer that a payment is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
requested for a covered loss. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: Claim
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Which of the following is the consideration an insured
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
pays for insurance coverage? ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Deductible
||\\||\\
b. Premium
||\\||\\
,c. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
d. Coinsurance - correct answers ✔✔Premiums are the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
cost of insurance coverage and the insured's ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
consideration.
The correct answer is: Premium ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Adverse selection is characterized by: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Unfair discrimination
||\\||\\ ||\\||\\
b. Rating risks||\\||\\ ||\\||\\
c. A healthy person purchasing health insurance
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
d. A sick person purchasing health insurance - correct
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
answers ✔✔Adverse selection is the tendency for poorer ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
than average risks to seek insurance. ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: A sick person purchasing health
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance
Judith is injured in a car accident. She incurs a covered loss ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
of $50,000. She is required to pay $3,000 before the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
,insurer will cover 80% of the covered loss. Which of the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
following terms best describes the $3,000 Judith must ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
pay?
a. Premium ||\\||\\
b. Deductible ||\\||\\
c. Coinsurance
||\\||\\
d. Claim - correct answers ✔✔A deductible is the amount
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
an insured must pay before the insurer will begin to pay
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
benefits.
The correct answer is: Deductible ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Judith's health insurance will pay a maximum of $3 million ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
for all of her claims. Which of the following terms best
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
describes this policy feature? ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Indemnity ||\\||\\
b. Limit of liability
||\\||\\ ||\\||\\ ||\\||\\
c. Coinsurance
||\\||\\
, d. Claim - correct answers ✔✔A limit of liability is the total
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
amount the insurer will pay for an insured risk.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The correct answer is: Limit of liability
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
The tendency for poorer than average risks to seek out
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance is the definition of: ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Select one: ||\\||\\
a. Indemnity ||\\||\\
b. Reinsurance ||\\||\\
c. Adverse selection
||\\||\\ ||\\||\\
d. Coinsurance - correct answers ✔✔Insurers must
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
minimize adverse selection, which is defined as the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
tendency for poorer than average risks to seek out ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
insurance.
The correct answer is: Adverse selection
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Cost-sharing between the insurer and the insured that is ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
often expressed as the percent for insurer and insured is
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
known as: ||\\||\\
