Alabama Life & Health Insurance 2024 Exam Questions and Answers Solved 100% Correct!!

Agent/Producer - Answer-A person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company. Agent/Agency Contract - Answer-a contract that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held personally liable to the insurer for breach of contract. Applicant or Proposed Insured - Answer-A person who requests or seeks insurance from an insurer. Beneficiary - Answer-the person who receives the benefits from the policy of insurance Death Benefit - Answer-The amount paid when a claim is issued against a policy of insurance Insurance Policy - Answer-a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events Insured - Answer-The person covered by the policy of insurance who may or may not be the applicant or policy owner. Insurer (principal) - Answer-a company that issues a policy of insurance Life Insurance - Answer-a coverage upon a person's life, and granting, purchasing or disposing of annuities Policyowner - Answer-the person entitled to exercise the rights and privileges in the policy and who may or may not be the insured Premium - Answer-the money paid to the insurance company for the policy of insurance Insurance is the ________ of risk. Insureds' losses are transferred over to the __________ - Answertransfer;insurerRisk - Answer-The uncertainty or chance of a loss occurring. Pure Risk - Answer-refers to situations that can only result in a loss or no change. No opportunity for financial gain. Only type of risk that insurance companies are willing to accept