NC Health Insurance Exam Pearson Vue Latest 2023 Graded A+

NC Health Insurance Exam Pearson Vue Latest 2023 Graded A+ Pure Risk chance of loss or no loss but not gain insurable Speculative Risk there is possibility of loss but of gain no insurablility exposure unit subject to loss peril cause of loss life insurance death Health insurance accident and sickness hazard increases the likelihood or severity of loss Three types of hazard physical, moral, morale physical hazard arise from the inherent characteristic of the exposure unit Moral Hazard lifestyle of the insured person Morale hazard arise more from an outlook on life risk avoidance eliminating all risk altogether risk retention manage risk Deduction self-insurance instead of buying health insurance and saving $ in the bank Pure risk that are not insurable Flood, War, Catastrophic losses Intentional losses not insurable Adverse selection bad for insurance insurance actuary a specially trained mathematician who calculates premiums underwriter checks out the medical history of the proposed insured and other factors to eliminate adverse selection against the insurance company, issue policy premium restrictions Days for applicant to requests an explanantion 90 days Days insurance company must furnish an explanation 21 days A dispute must begin within in 30 days Law of Large numbers the larger the number the easier it is to predict losses how much $ must a insurance company have in reserve at all times 4 million Reinsurance agreements enable an insurance company the ceding company to transfer risk to the reinsurer (seller) Capital Stock companies are owned by stock holders and most common Main purpose of the stock company make a profit for its investors Mutual companies are owned by policy holders Assessment insurers charge additional premiums at the end of the specified time period Fraternal benefit societies are similar to mutual companies who is only eligible to buy insurance policies from a Fraternal? its members Fraternal agents can only sell which policies life, health and annuity policies self insurers only insure themselves Reciprocal exchanges all its members to to insure each