UCanPass Primerica VA Exam Guide 2024

Agent/Producer - a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer Applicant or purposed insured - A person applying for insurance Broker - An insurance producer not appointed by and insurer and is deemed to represent a client Insurance policy - A contract between a policyowner (and/or insured) and insurance company which agrees to pay e insured or the beneficiary for loss caused by specific events Insured - The person covered by the insurance policy. This person may or may not be the policyowner Insurer(principal) - The company who issues an insurance policy Policyowner - The person entitled to exercise the rights and privileges in the policy Premium - The money paid to the insurance company for the insurance policy Reciprocity/Reciprocal - A mutual interchange of right and privileges Insurance is the _______ of risk. Insureds' losses are transferred over to the insurer - Transfer Risk - Uncertainty or or chance of a loss occurring Pure risk - Refers to situations that can only result in loss or no change Speculative risk - Involves the opportunity for either loss or gain Only _______ risks are insurable - Pure Exposure - Unit of measure used to determine rates charged for insurance coverage Homogeneous - A large number of units having the same or similar exposure to loss Hazard - Condition or situations that increase the probability of an insured loss occurring