Life insurance exam questions and answers rated A+

Life insurance exam questions and answers rated A+ life insurance insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured,may b annuity or endowment, may incl benef for accident death/dismemberment, disability, protects against risk pf premature death which exposes a finNcial riskto family or business. ie:burial expenses, pay debts, loss of family inc/business profits insurance content that indemnifies another against loss, damage, liab arising from unknown event indemnify make a person whole by restoring that person to the same financial poistion that existed. 4 the loss insured policy owner premium set amount of money payable for policy/coverage insurance company insurer policy agreement insurer and insured, agreeement/contract loss reduction in value and asset claim demand for payment of insured benefit to person named in policy risk uncertainty of financial loss when one or more outcome is possible. must be element of doubt and uncertainity pure risk only a chance of loss, only pure risk is insurable, risk associated with chance of loss speculative risk involves both uncertain of loss and gain ie betting at a race track/ investing in the stock market peril immediate specific event causing loss and giving rise to risk. ie building burns as a result of "fire" or person dies as a result of "death" hazard fsctor that gives rise to peril three types of hazards physical, moral, morale physical hazard arises from material, structural, or operational features ie: unsanitary conditions slippery floors moral hazard arise from peoples habits or values (lying, cheating) morale hazard arises out of human negligence ie: dont wear seatbelt 5 ways to manage risks share transfer avoid reduction retention sharing risk when risk cannot be avoided& retention causes too much exposure transfer risk move risk to another insurance co types of transfers non insurance and contract avoidance of risk abstenance reduction of risk smoke alarm to reduce potential loss retention of risk do nothing, assume part of risk yourself ie: deductible law of large numbers ins co cannot predict loss expecte