Oklahoma Insurance Exam (Life insurance)Exam Prep Questions And
Answers (202472025)
What are two kinds of risk? - ✔✔Speculative risk
pure risk
what type of risk is the chance of financial loss with the possibility of gain or loss? Ex: Gambling
- ✔✔speculative risk
what type of risk is the chance of financial loss with no possibility of gain. the only potential
outcome is financial loss. - ✔✔Pure risk
what is another work for restoring or making financially whole? - ✔✔indemnify
the actual cause of a loss or the reason a loss occurred is called? - ✔✔peril
conditions increase the chance of a peril is called? - ✔✔hazard
what are the 3 types of hazards? and describe - ✔✔Physical Hazard-arises from visible material
or structural features
Moral Hazard-arises from morality of insured (intentional and deliberate)
Morale Hazard-arises from human carelessness, indifference, or irresponsibility
what are the 4 risk management techniques? (RRAT) - ✔✔Reduce
retain
avoid
transfer
what are the 6 requirements for a pure risk can be insurable? - ✔✔accidental loss
, financial loss
calculable loss
affordable
non-catastrophic
predictable
what is it called when you are legally binding an individual between the insurer and the insured -
✔✔insurance policy
what is the likelihood of going during a given year. these tables predict the probability of the
number of deaths in a given year. - ✔✔mortality
mortality tables assume everyone is statically dead at one age? - ✔✔100
The price (cost) of insurance per unit of exposure. - ✔✔rate
what are the three components of rates? - ✔✔mortality
interest rate
insurer expenses
what are the three types of performance ratios? - ✔✔loss ratio
expense ratio
combined ratio
what is the tendency for less favorable risk to apply for insurance? - ✔✔adverse selection
what are medical conditions the insured had before policy in effective? - ✔✔preexisting conditions
Answers (202472025)
What are two kinds of risk? - ✔✔Speculative risk
pure risk
what type of risk is the chance of financial loss with the possibility of gain or loss? Ex: Gambling
- ✔✔speculative risk
what type of risk is the chance of financial loss with no possibility of gain. the only potential
outcome is financial loss. - ✔✔Pure risk
what is another work for restoring or making financially whole? - ✔✔indemnify
the actual cause of a loss or the reason a loss occurred is called? - ✔✔peril
conditions increase the chance of a peril is called? - ✔✔hazard
what are the 3 types of hazards? and describe - ✔✔Physical Hazard-arises from visible material
or structural features
Moral Hazard-arises from morality of insured (intentional and deliberate)
Morale Hazard-arises from human carelessness, indifference, or irresponsibility
what are the 4 risk management techniques? (RRAT) - ✔✔Reduce
retain
avoid
transfer
what are the 6 requirements for a pure risk can be insurable? - ✔✔accidental loss
, financial loss
calculable loss
affordable
non-catastrophic
predictable
what is it called when you are legally binding an individual between the insurer and the insured -
✔✔insurance policy
what is the likelihood of going during a given year. these tables predict the probability of the
number of deaths in a given year. - ✔✔mortality
mortality tables assume everyone is statically dead at one age? - ✔✔100
The price (cost) of insurance per unit of exposure. - ✔✔rate
what are the three components of rates? - ✔✔mortality
interest rate
insurer expenses
what are the three types of performance ratios? - ✔✔loss ratio
expense ratio
combined ratio
what is the tendency for less favorable risk to apply for insurance? - ✔✔adverse selection
what are medical conditions the insured had before policy in effective? - ✔✔preexisting conditions
