Webce Life and Health Exam Questions and Answers

Webce Life and Health Exam Questions and Answers Representations are statements the applicant makes on an application that are deemed to be true to the applicant's best knowledge. Warranties are statements the insurer makes in the contract. - ANSWER Representations and Warranties Two related insurance company functions. Through the process of _________, applications are assessed for insurability and to assign premium rates. The ________ department analyzes data to help estimate future losses and to produce rate tables. - ANSWER Underwriting vs. Actuarial Departments Two variations of the career agency system in which producers represent a single company. One is headed by a company employee called a general manager (GM), the other by an independent contractor called a general agent (GA). - ANSWER Managerial System vs. General Agency System A non-profit form of insurance provider sponsored by an organization of people who share a common ethnic, religious, or vocational affiliation. - ANSWER Fraternal Insurance Company Two related general insurance terms: Peril is the immediate cause of a loss (and the event that is insured against). Hazard is any condition that increases the risk of incurring a loss. - ANSWER Peril and Hazard A type of contract in which one party (the offeror) drafts the terms that must be accepted as-is by the offeree. Insurance policies are this type. - ANSWER Contract of adhesion A form of insurance company that is owned by policyowners. May distribute policy dividends (non-taxable) through participating policies. - ANSWER Mutual Insurance Company An insurance distribution system in which the manager and producers are fully independent and not affiliated with any single insurer. - ANSWER Independent Agency System Two related disclosure documents that are required by most states to be presented to life and health insurance applicants at some point during the buying process. - ANSWER Buyer's Guide and Policy Summary A basic insurance term referring to the possibility of incurring a loss. - ANSWER Risk A mathematical principle that is the basis for predicting the odds of a loss occurring in a certain population in any given year. - ANSWER Law of Large Numbers A federal insurance program that provides disability, death, and retirement benefits to covered workers and their qualifying beneficiaries. - ANSWER Social Security (OASDI)