LOMA 280 PRINCIPLES OF INSURANCE UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

LOMA 280 PRINCIPLES OF INSURANCE UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
LOMA 280 PRINCIPLES OF INSURANCE
QUESTIONS AND CORRECT
Policy in which the amount of benefit is based
results from covered event
Contract of adhesion
1
Contract of indemnity
3




Answer:

, UPDATED ACTUAL
ANSWERS
on actual amount of financial loss that
Contract of assurance
2
Contract of utmost good faith
4

Question:
Personal Risk
Answer:
Risk of economic loss associated with death, poor health, injury, and outliving
economic resources

Question:
Liability risk
Answer:
Risk of economic loss resulting from a person being held legally responsible for
harming others or their property

Question:
5 characteristics of insurable risks
Answer:
Loss must occur by chance
Loss must be definite
Loss must be significant
Loss rate must be predictable
Loss must not be catastrophic to the insurer

Question:
Policy in which the amount of benefit is based on actual amount of financial loss
that results from covered event
Answer:
Contract of indemnity

Question:
Law of large numbers
Answer:
The more events that occur the more likely results will approximate true
probability p

Question:
Rate at which death occurs among a group of people during a specific time
period
Answer:
Mortality rate

Question: