Health Insurance (Exam FX) Questions With Complete Solutions

Agent/Producer correct answer: A legal representative of an insurance company Broker correct answer: An insurance producer not appointed by an insurer and whom represents the client Insured correct answer: A person covered by an insurance policy Insurance policy correct answer: A legal contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured/beneficiary for losses caused by specific events Principal correct answer: Insurer, company who issues insurance policies Policyowner correct answer: The person entitled to exercise the rights and privileges in a policy Premium correct answer: The money paid to the insurance company for the insurance policy Reciprocal correct answer: A mutual interchange of rights and privileges Risk correct answer: Chance of a loss occurring Pure Risk correct answer: Situations that can only result in a loss Speculative Risk correct answer: Situations that can result in either a loss or gain