2-15 Florida Insurance Exam Questions And Answers

2-15 Florida Insurance Exam Questions And Answers Risk - ANS Can be defined as uncertainty regarding loss Pure Risk - ANS Involve only the chance of loss; It's the only insurable risk. Speculative Risk - ANS A chance for gain and a chance of loss. (Gambling, Stock Mkt, etc.) Peril - ANS The immediate specific event causing loss and giving rise to risk. Hazard - ANS Physical, Moral, and Morale Mortality - ANS Death Morbidity - ANS Sickness; The expected incidence of sickness or disability within a given age group during a given period of time. LLoyd's of London - ANS Not an insurer but an association of individuals and companies that individually underwrite insurance. (ex. J.Lo's butt) Stock Insurers - ANS Non-participating policies Mutual Insurers - ANS Participating policies Reciprocal Insurers - ANS Managed by an attorney-in-fact Reinsurers - ANS The company assuming the risk Ceding - ANS Transferring the risk Commercial Insurers - ANS Stock and mutual companies Fraternal Benefit Societies - ANS Lodge, Non-profit, Elected officials (elders), Rituals Preferred Provider Organization (PPO) - ANS A group will obtain price discounts or special services from certain select health care providers in exchange for referring its employees or members to them. Health Maintenance Organization (HMO) - ANS A fixed periodic premium paid in advance of any treatment, these subscribers are entitled to the services of certain physicians and hospitals contracted to work. Known for stressing preventative health care and early treatment programs. Service Providers - ANS Offers benefits to subscribers in return for the payment of premium. Blue Cross/Blue Shield Brokers - ANS Represents the buyer Agents - ANS Represent the insurer Career Agency System - ANS General Agent State Regulated - ANS 1868-Paul v. Virginia Federally Regulated - ANS 1944-United States v. Southeastern Underwriters Association (SEUA) The McCarran-Ferguson Act - ANS Gave regulation back to the state State and Federal Regulation - ANS 1959-Intervention by the SEC 1999-Financial Services Modernization Act - ANS Broke the glass between the banks and the insurance industry Advertising Code - ANS Cannot call insurance an investment - it has investment properties. Unfair Trade Practices Act - ANS Gives CFO's the power to investigate insurance companies and producers, to issue and desist orders, and to impose penalties and violators Aleatory - ANS Dollar values exchanged may not be equal. (Premium is less than the benefit) Commutative - ANS Equal value Consideration - ANS $$ Premium (Premium & Application completed) Competent Parties - ANS Minors (15-to sign in FL), the mentally infirm, those under the influence of alcohol or narcotics Adhesion - ANS No negotiation Unilateral - ANS One sided promise Conditional - ANS Upon an event happening Valued Contract - ANS Pays a stated sum, regardless of the actual loss incurred, when the contingency insured against occ