ACCIDENT AND HEALTH INSURANCE EXAM
QUESTIONS WITH REVISED
ANSWERS[GUARANTEED GRADE A+]
Share, Transfer, Avoid, Retain, Reduce - Correct Answers -5 ways of managing risk
Managing General Agent - Correct Answers -A person who exercises general supervision over
the business of the insurer, which includes hiring and firing agents
Concealment - Correct Answers -Failure to disclose a material fact
Surplus Lines - Correct Answers -Sold by unauthorized companies, such as Lloyd's of London
Representation - Correct Answers -Truth to the best of your knowledge
Warranty - Correct Answers -Guaranteed to be true
Stock insurance companies - Correct Answers -Pay dividends to stockholders
Reciprocal Insurance company - Correct Answers -Unincorporated group of individuals with
each party insuring other members (subscribers) and who is managed by attorney-in-fact
Risk retention groups - Correct Answers -Established by and for its members
Independent agents - Correct Answers -Own their own accounts and are not insurance company
employees
Utmost Good Faith - Correct Answers -Rely on the honesty of each other
,Adhesion - Correct Answers -Insurer must adhere to its ambiguity in favor of the buyer
Moral - Correct Answers -Dishonest client
Speculative Risk - Correct Answers -Possibility of gain or loss ( gambling risk)
Law of Large numbers - Correct Answers -Predicts claims more accurately
Pure risk - Correct Answers -Chance of loss without any chance of gain
Aleatory - Correct Answers -Unequal
Foreign - Correct Answers -Another state
Alien - Correct Answers -Another country
Domestic - Correct Answers -Home office in ohio
Surcharge - Correct Answers -"Counteroffer" original offer is voided, no coverage until client
accepts the policy at the higher rate an pays the increased premium and signs
Mutual insurance company - Correct Answers -"Policy owners / holders" dividends received are
not taxable
Stock company - Correct Answers -Dividends received by owner are taxable
, Consideration - Correct Answers -Both answers on the application and the premium. In return,
insurance company promises to coverage
Unilateral - Correct Answers -Only one party, makes legally enforceable promise
Peril - Correct Answers -Cause of loss
Hazard - Correct Answers -Increases the chance of a loss
Director of Insurance - Correct Answers -Insurance company must be authorized to do business
in Ohio by the
Insurer - Correct Answers -Agents represent the
Client - Correct Answers -Brokers represent the
Agent - Correct Answers -Solicitors represent the
Principle - Correct Answers -The insurer is the
Treaty - Correct Answers -______ reinsurance, company has pre-negotiated arrangement with a
re-insurer
Faculative - Correct Answers -______ reinsurance is case-by-case basis
Adverse Selection - Correct Answers -Occurrs when policy owner take unfair advantage of the
company
QUESTIONS WITH REVISED
ANSWERS[GUARANTEED GRADE A+]
Share, Transfer, Avoid, Retain, Reduce - Correct Answers -5 ways of managing risk
Managing General Agent - Correct Answers -A person who exercises general supervision over
the business of the insurer, which includes hiring and firing agents
Concealment - Correct Answers -Failure to disclose a material fact
Surplus Lines - Correct Answers -Sold by unauthorized companies, such as Lloyd's of London
Representation - Correct Answers -Truth to the best of your knowledge
Warranty - Correct Answers -Guaranteed to be true
Stock insurance companies - Correct Answers -Pay dividends to stockholders
Reciprocal Insurance company - Correct Answers -Unincorporated group of individuals with
each party insuring other members (subscribers) and who is managed by attorney-in-fact
Risk retention groups - Correct Answers -Established by and for its members
Independent agents - Correct Answers -Own their own accounts and are not insurance company
employees
Utmost Good Faith - Correct Answers -Rely on the honesty of each other
,Adhesion - Correct Answers -Insurer must adhere to its ambiguity in favor of the buyer
Moral - Correct Answers -Dishonest client
Speculative Risk - Correct Answers -Possibility of gain or loss ( gambling risk)
Law of Large numbers - Correct Answers -Predicts claims more accurately
Pure risk - Correct Answers -Chance of loss without any chance of gain
Aleatory - Correct Answers -Unequal
Foreign - Correct Answers -Another state
Alien - Correct Answers -Another country
Domestic - Correct Answers -Home office in ohio
Surcharge - Correct Answers -"Counteroffer" original offer is voided, no coverage until client
accepts the policy at the higher rate an pays the increased premium and signs
Mutual insurance company - Correct Answers -"Policy owners / holders" dividends received are
not taxable
Stock company - Correct Answers -Dividends received by owner are taxable
, Consideration - Correct Answers -Both answers on the application and the premium. In return,
insurance company promises to coverage
Unilateral - Correct Answers -Only one party, makes legally enforceable promise
Peril - Correct Answers -Cause of loss
Hazard - Correct Answers -Increases the chance of a loss
Director of Insurance - Correct Answers -Insurance company must be authorized to do business
in Ohio by the
Insurer - Correct Answers -Agents represent the
Client - Correct Answers -Brokers represent the
Agent - Correct Answers -Solicitors represent the
Principle - Correct Answers -The insurer is the
Treaty - Correct Answers -______ reinsurance, company has pre-negotiated arrangement with a
re-insurer
Faculative - Correct Answers -______ reinsurance is case-by-case basis
Adverse Selection - Correct Answers -Occurrs when policy owner take unfair advantage of the
company
