MICHIGAN VARIABLE
INSURANCE EXAM
The causes of loss insured - ANSWERS-Peril
The reduction, decrease, or disappearance of value of the person or
property insured in a policy is known as what? - ANSWERS-Loss
A large number of units having the same or similar exposure to loss is
known as - ANSWERS-Homogenous
Planned assumption of risk by an insured through the use of
deductibles, co-payments, or self-insurance. - ANSWERS-risk
retention
The pure risk measurables are - ANSWERS-Due to chance,
Measurable, predictable, not catastrophic, randomly selected.
The insuring of risks that are more prone to losses than average risks
is known as? - ANSWERS-Adverse selection
Companies owned by stockholders - ANSWERS-Stock companies
COmpanies owned by policyholders - ANSWERS-Muutal companies
, An insurance originization typically not regulated as a company by
state authorities - ANSWERS-Risk retention group
Before insurers may transact business in a specific state they must
apply and be granted a license or - ANSWERS-Certificate of
authority
Insurers who meet the stastes financial requirements and are approved
by the state to transact business are - ANSWERS-Authorized or
admitted
authority a principal intends to grant an agent by means of the agents
contract - ANSWERS-Express
The contract does not specifically authoriize the agent to collect
premiums but the agent routinely does so in the process of
solicitations and delivery of policies. - ANSWERS-Implied authority
Agent uses insurers staionairy when soliciting coverage, the applicant
may belive that agent is authorized to transact business - ANSWERS-
Apparent authority
Unequal values - ANSWERS-Aleatory
One sided, one part makes a promise - ANSWERS-Unilateral
INSURANCE EXAM
The causes of loss insured - ANSWERS-Peril
The reduction, decrease, or disappearance of value of the person or
property insured in a policy is known as what? - ANSWERS-Loss
A large number of units having the same or similar exposure to loss is
known as - ANSWERS-Homogenous
Planned assumption of risk by an insured through the use of
deductibles, co-payments, or self-insurance. - ANSWERS-risk
retention
The pure risk measurables are - ANSWERS-Due to chance,
Measurable, predictable, not catastrophic, randomly selected.
The insuring of risks that are more prone to losses than average risks
is known as? - ANSWERS-Adverse selection
Companies owned by stockholders - ANSWERS-Stock companies
COmpanies owned by policyholders - ANSWERS-Muutal companies
, An insurance originization typically not regulated as a company by
state authorities - ANSWERS-Risk retention group
Before insurers may transact business in a specific state they must
apply and be granted a license or - ANSWERS-Certificate of
authority
Insurers who meet the stastes financial requirements and are approved
by the state to transact business are - ANSWERS-Authorized or
admitted
authority a principal intends to grant an agent by means of the agents
contract - ANSWERS-Express
The contract does not specifically authoriize the agent to collect
premiums but the agent routinely does so in the process of
solicitations and delivery of policies. - ANSWERS-Implied authority
Agent uses insurers staionairy when soliciting coverage, the applicant
may belive that agent is authorized to transact business - ANSWERS-
Apparent authority
Unequal values - ANSWERS-Aleatory
One sided, one part makes a promise - ANSWERS-Unilateral
