Washington Life/Health Insurance Exam Latest Update Graded A+

Washington Life/Health Insurance Exam Latest Update Graded A+ policy owner usually, but not always the person covered by the policy beneficiary the person who is paid when a claim is submitted agent/producer acts as a legal representative of the insurance company broker representative of the Insured, not the insurance company risk The chance or uncertainty of loss Pure risk the chance of experiencing a loss (without the possibility of gain). Only downside, no upside. Speculative risk s the chance of loss one accepts in the hope of realizing a gain Risk avoidance staying away from risky activities altogether Risk reduction reduce the chance of something bad happening Risk shifting Get someone else to accept the risk Buying insurance transfer a portion of your risk to the Insurer Risk Retention the individual or business that opts not to buy insurance retains the entire risk Indemnification an insurance concept that states that some portions of the insurance industry prefer that we be made only whole after a loss rather than coming out ahead (Only getting back what you are owed, not getting more than what you had to start with) Subrogation the transfer to the Insurer of the Insured's rights to recover damages from a responsible third party Peril the cause of loss Law of Large numbers the mathematical concept that makes it easier to predict losses if we have a large number of Insureds Insurable losses are... Economic, Predictable, Accidental, Measurable, Non-Catastrophic non-participating companies Stock companies that exist for the sole purpose of generating profits for their stockholders participating companies A company owned by its policy holders where the profits are distributed among policy holders Social Security act a guarantee that government would never again allow workers (and their families) to become destitute OASDI (Social Security) Old Age, Survivors, and Disability Insurance...Federal Government law FICA Federal Insurance Contributions Act or FICA, payroll taxes levied on employees, employers, and the self-employed. Not covered by social security payroll taxes levied on employees, employers, and the self-employed. FICA Fully Insured (Worked for 10 years) payroll taxes levied on employees, employers, and the self-employed. Retirement Benefits; Disability Income Benefits; and Survivor Benefits. Currently Insured Worked less than ten years. Only eligeable for Survivor Benefits Average Indexed Monthly Earnings Averages earnings over time period. Either way, the more a worker has paid into Social Security, the more the worker (or dependents) will get out of it. (What you get at age 65) Primary Insurance Amount (PIA). Full