Ohio Life and Health Insurance Test| 150 Questions| accurate 100%(SCORED A+)

According to the law of large numbers, how would losses be affected if the number of similar insured units increases? - ANSWER Predictability of losses will be improved Which of the following can be defined as "the potential for loss"? - ANSWER Risk An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contractual arrangement is this? - ANSWER Reinsurance contract Which of these statements regarding insurance is false? - ANSWER As the number of insured units increases, the number of losses decreases The powers directly given to an agent in an agency contract are called - ANSWER express Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - ANSWER Can be unequal What is the reason that insurance companies require a minimum number of employees participating in a group insurance plan? - ANSWER Adverse selection is minimized What type of policy can group term life insurance normally be converted to? - ANSWER An individual permanent life insurance policy Any employee insured under a group life insurance plan is normally - ANSWER protected by term life insurance Which of these is NOT relevant when determining the amount of personal life insurance needed? - ANSWER Local unemployment rates What is considered a valid reason for small businesses to insure the lives of its major shareholders? - ANSWER Fund a buy-sell agreement Employers often purchase life insurance on a key employee in order to - ANSWER help offset the cost of finding and training a replacement if the employee dies Whi