NC Health Insurance Exam Pearson Vue Questions With 100% Correct Answers

NC Health Insurance Exam Pearson Vue Questions With 100% Correct Answers Pure Risk - answerchance of loss or no loss but not gain insurable Speculative Risk - answerthere is possibility of loss but of gain no insurablility exposure unit - answersubject to loss peril - answercause of loss life insurance - answerdeath Health insurance - answeraccident and sickness hazard - answerincreases the likelihood or severity of loss Three types of hazard - answerphysical, moral, morale physical hazard - answerarise from the inherent characteristic of the exposure unit Moral Hazard - answerlifestyle of the insured person Morale hazard - answerarise more from an outlook on life risk avoidance - answereliminating all risk altogether risk retention - answermanage risk Deduction self-insurance - answerinstead of buying health insurance and saving $ in the bank Pure risk that are not insurable - answerFlood, War, Catastrophic losses Intentional losses - answernot insurable Adverse selection - answerbad for insurance insurance actuary - answera specially trained mathematician who calculates premiums underwriter - answerchecks out the medical history of the proposed insured and other factors to eliminate adverse selection against the insurance company, issue policy premium restrictions Days for applicant to requests an explanantion - answer90 days Days insurance company must furnish an explanation - answer21 days A dispute must begin within in - answer30 days Law of Large numbers - answerthe larger the number the easier it is to predict losses how much $ must a insurance company have in reserve at all times - answer4 million Reinsurance agreements - answerenable an insurance company the ceding company to transfer risk to the reinsurer (seller) Capital Stock companies are owned by - answerstock holders and most common Main purpose of the stock company - answermake a profit for its investors Mutual companies are owned by - answerpolicy holders Assessment insurers - answercharge additional premiums at the end of the specified time period Fraternal benefit societies are similar to - answermutual companies who is only eligible to buy insurance policies from a Fraternal? - answerits members Fraternal agents can only sell which policies - answerlife, health and annuity policies self insurers - answeronly insure themselves Reciprocal exchanges - answerall its members to to insure each other who manages a reciprocal? - answerattorney-in-fact who often steps in to cover risks too large or too catastrophic for private insurers? - answergovernment insurers Social Security - answera federal program funded by employers, employees and the selfemployed What agency does not fund social security? - answerFEderal Government Insurers must be in a state to sell insurance - answerAuthorized What does Insurer get to sell in the insurance in a certain state? - answerCertificate of Authority What are insurers classified as in their own state? - answerDomest