SC insurance Exam Questions with solved Answers

Transfer the risk of loss from an individual or a business - ANSWER-Insurance What factors are considered in determining rates? - ANSWER-Age Medical history Occupation Sex and Gender What's shown by the use of deductible, co pays and self assurance - ANSWER-Risk Retention A negative more proned to losses method used as protection to decline an applicant - ANSWER-Adverse selection A non participating policy will issue dividends to the policy holder also known as ? - ANSWER-The Owner Which type is non taxable due to surplus premiums paid into policy? - ANSWER-A fraternal benefit society Insurance for insurers against a catastrophic loss - ANSWER-Reinsurance Also known as perceived authority? - ANSWER-Apparent authority Which is based on unequal contributions? - ANSWER-Aleatory Which is one sided only one party can walk away and insurer must keep the policy - ANSWER-Unilateral contract An untrue statement on application - ANSWER-Misrepresentations