Nebraska Life and Health Insurance Exam Questions and Answers 100% Pass

Nebraska Life and Health Insurance Exam Questions and Answers 100% Pass What is Insurance? - Answer- a contract in which 1 party (insurance company) agrees to indemnify (make whole) the insured party against loss, damage, or a liability arising from an unknown event. What is life insurance? - Answer- a policy that protects survivors from losses suffered after an insured's death What does insurance do? - Answer- transfers the risk of loss from an individual or business entity to an insurance company which spreads out costs of unexpected losses to many individuals What is risk? - Answer- uncertainty or chance of a loss occurring Pure risk - Answer- refers to sutuations that can only result in a loss or no change, no opportunity for financial gain What type of risk do insurance companies accept? - Answer- pure risk Speculative risk - Answer- involves opportunity for loss or gain Hazard - Answer- conditions or situation that increase probability of an insured loss occurring Physical hazard - Answer- individual characteristics that increase the chances of the cause of loss Example of a physical hazard - Answer- past medical history, existing conditions, (blindness