Ohio Life and Health Insurance Exam Cram 100% Correct

Ohio Life and Health Insurance Exam Cram 100% Correct The term describing the insured's notification to the insurer requesting payment for a covered loss is: a. Limit of liability b. Premium c. Claim d. Deductible - Answer ️️ -An insurance claim is the insured's notification to the insurer that a payment is requested for a covered loss. The correct answer is: Claim Which of the following is the consideration an insured pays for insurance coverage? Select one: a. Deductible b. Premium c. Limit of liability d. Coinsurance - Answer ️️ -Premiums are the cost of insurance coverage and the insured's consideration. The correct answer is: Premium Adverse selection is characterized by: Select one: a. Unfair discrimination b. Rating risks c. A healthy person purchasing health insurance d. A sick person purchasing health insurance - Answer ️️ -Adverse selection is the tendency for poorer than average risks to seek insurance. The correct answer is: A sick person purchasing health insurance Judith is injured in a car accident. She incurs a covered loss of $50,000. She is required to pay $3,000 before the insurer will cover 80% of the covered loss. Which of the following terms best describes the $3,000 Judith must pay? a. Premium b. Deductible c. Coinsurance d. Claim - Answer ️️ -A deductible is the amount an insured must pay before the insurer will begin to pay benefits. The correct answer is: Deductible Judith's health insurance will pay a maximum of $3 million for all of her claims. Which of the following terms best describes this policy feature? Select one: a. Indemnity b. Limit of liability c. Coinsurance d. Claim - Answer ️️ -A limit of liability is the total amount the insurer will pay for an insured risk. The correct answer is: Limit of liability The tendency for poorer than average risks to seek out insurance is the definition of: Select one: a. Indemnity b. Reinsurance c. Adverse selection d. Coinsurance - Answer ️️ -Insurers must minimize adverse selection, which is defined as the tendency for poorer than average risks to seek out insurance. The correct answer is: Adverse selection Cost-sharing between the insurer and the insured that is often expressed as the percent for insurer and insured is known as: Select one: a. Coinsurance b. Deductible c. Premium d. Claim - Answer ️️ -Coinsurance is the cost-sharing between the insurer and the insured. It is usually expressed as the percent for insurer and insured, such as 80/20. The correct answer is: Coinsurance Which of the following types of insurance covers a debt? Select one: a. Credit b. Casualty c. Property d. Legal liability - Answer ️️ -Credit insurance is used to protect against the risk of inability to repay a debt. Property, casualty and legal liability do not cover debts. The correct answer is: Credit Reinsurance is defined as: Select one: a. Risk reduction b. Spreading risk from one insurer to another c. To make whole d. Adverse selection - Answer ️️ -Your answer is correct When an insurer incurs too much loss, it can spread risk to another insurer. The correct answer is: Spreading risk from one insurer to another This product protects against the risk of living too long: Select one: a. Life insurance b. Health insurance c. Annuities d. Variable life insurance - Answer ️️ -Annuities protect against the risk of living too long. The correct answer is: Annuities Which of the following correctly identifies the most importa