Louisiana Health insurance exam
Characteristics of group insurance 3 - Answer -group contract
cert if coverage
experience rating s community rating
Insurance - Answer -Transfer risk of loss
Risk - Answer -Uncertainty of chance or loss occurring
Speculative and pure
Exposure - Answer -Uom used to determine rates for insurance coverage
Hazard - Answer -Increase probability of loss
Moral, morale, etc.
Peril - Answer -Loss
Methods of avoiding risk - Answer -Avoidance-eliminatingexposure
,Risk retention-planned assumption through deductibles, copayments, etc.
Sharing-reciprocal insurance exchange
Reduction-smoke alarms
Transfer-most common; insruance
Purpose of retention 3 - Answer -Reduce expenses improve cash flow
Increase control of claim reserves and settlements
Fund losses that can not be insured
Elements of insurability risks 5 - Answer -Due to chance
Definite and measurable
Statistically predictable
Not catastrophic
Randomly selected and large loss exposure
Reinsurance - Answer -Ceding insurer - gets insurance from assuming insurer (reinsurer)
Facultative insurance - Answer -Purchased on a specific policy from reinsurer
Stock companies - Answer -Share profit/losses
, Issue nonparticipating policies traditionally do not share profit or loss
Do not pay dividends to policy owners
Taxable dividends paid to stock holders
Mutual companies - Answer -Entitled to dividends, no taxable
Paid when premium and earnings more than costs of providing coverage
Surplus lines - Answer -Not available on regular market usually for high risk
Independent rating services - Answer -Am best
Fitch
Standard and poors
Moody's
Weiss
3 types of agent authority - Answer -Express, in contract
Implied, collect premiums
Apparent, if have company merchandise can not deny relationship existed
Fiduciary responsibility - Answer -Person of trust, with premiums
Contracts 4 components - Answer -Agreement- offer & acceptance
Characteristics of group insurance 3 - Answer -group contract
cert if coverage
experience rating s community rating
Insurance - Answer -Transfer risk of loss
Risk - Answer -Uncertainty of chance or loss occurring
Speculative and pure
Exposure - Answer -Uom used to determine rates for insurance coverage
Hazard - Answer -Increase probability of loss
Moral, morale, etc.
Peril - Answer -Loss
Methods of avoiding risk - Answer -Avoidance-eliminatingexposure
,Risk retention-planned assumption through deductibles, copayments, etc.
Sharing-reciprocal insurance exchange
Reduction-smoke alarms
Transfer-most common; insruance
Purpose of retention 3 - Answer -Reduce expenses improve cash flow
Increase control of claim reserves and settlements
Fund losses that can not be insured
Elements of insurability risks 5 - Answer -Due to chance
Definite and measurable
Statistically predictable
Not catastrophic
Randomly selected and large loss exposure
Reinsurance - Answer -Ceding insurer - gets insurance from assuming insurer (reinsurer)
Facultative insurance - Answer -Purchased on a specific policy from reinsurer
Stock companies - Answer -Share profit/losses
, Issue nonparticipating policies traditionally do not share profit or loss
Do not pay dividends to policy owners
Taxable dividends paid to stock holders
Mutual companies - Answer -Entitled to dividends, no taxable
Paid when premium and earnings more than costs of providing coverage
Surplus lines - Answer -Not available on regular market usually for high risk
Independent rating services - Answer -Am best
Fitch
Standard and poors
Moody's
Weiss
3 types of agent authority - Answer -Express, in contract
Implied, collect premiums
Apparent, if have company merchandise can not deny relationship existed
Fiduciary responsibility - Answer -Person of trust, with premiums
Contracts 4 components - Answer -Agreement- offer & acceptance
