Nebraska Health and Life Insurance Exam
All parties are of legal competence (legal age, mentally capable, not influenced by substances) -
ANS-Competent Parties
Amount the insured must pay before insurer pays claim - ANS-Deductible
An insured's careless attitude, indifference, or lack of responsibility that increases the chance of
a loss - ANS-Morale Hazard
Anything that increases the chance of loss; physical, moral, morale, legal - ANS-Hazard
Application of laws and regulations that increase the chance of a loss - ANS-Legal Hazard
Authorized to sell insurance in their state - ANS-Admitted Insurers
Avoidance, retention, sharing, reduction, and transfer. Insurance is transfer. - ANS-Five ways to
handle risk
Cause of loss and the event insured against it - ANS-Peril
Combines similar losses from many people to average loss over the group - ANS-Risk Pooling
Companies owned by stockholders - ANS-Stock Companies
Condition of being prone to loss due to a hazard or uncertain event - ANS-Exposure
Contract made between insurance company and individual - ANS-Insurance Agreement
Cost-sharing between insurer and the insured in a medical insurance transaction, where insurer
agrees to pay the average cost of procedure. - ANS-Coinsurance
Demand for insurance coverage by people who are worse than average risk, and are more
likely to use coverage. - ANS-Adverse Selection
Exchange of value between parties of the contract - ANS-Consideration
Explicit authority granted to the agent by the principal it was written in the agency contract -
ANS-Express Authority
Illegal practice that involves the return of portion of the premium or agent's commission on
premium to place business - ANS-Rebating
All parties are of legal competence (legal age, mentally capable, not influenced by substances) -
ANS-Competent Parties
Amount the insured must pay before insurer pays claim - ANS-Deductible
An insured's careless attitude, indifference, or lack of responsibility that increases the chance of
a loss - ANS-Morale Hazard
Anything that increases the chance of loss; physical, moral, morale, legal - ANS-Hazard
Application of laws and regulations that increase the chance of a loss - ANS-Legal Hazard
Authorized to sell insurance in their state - ANS-Admitted Insurers
Avoidance, retention, sharing, reduction, and transfer. Insurance is transfer. - ANS-Five ways to
handle risk
Cause of loss and the event insured against it - ANS-Peril
Combines similar losses from many people to average loss over the group - ANS-Risk Pooling
Companies owned by stockholders - ANS-Stock Companies
Condition of being prone to loss due to a hazard or uncertain event - ANS-Exposure
Contract made between insurance company and individual - ANS-Insurance Agreement
Cost-sharing between insurer and the insured in a medical insurance transaction, where insurer
agrees to pay the average cost of procedure. - ANS-Coinsurance
Demand for insurance coverage by people who are worse than average risk, and are more
likely to use coverage. - ANS-Adverse Selection
Exchange of value between parties of the contract - ANS-Consideration
Explicit authority granted to the agent by the principal it was written in the agency contract -
ANS-Express Authority
Illegal practice that involves the return of portion of the premium or agent's commission on
premium to place business - ANS-Rebating
