NYS Life and Health Insurance Exam Review and Updated Questions and Answers_100% A+ Graded Excel

NYS Life and Health Insurance Exam Review and Updated Questions and Answers_100% A+ Graded Excel Reciprocal - CORRECT ANSWER-a mutual interchange of rights and privileges Pure Risk - CORRECT ANSWER-An event that offers no possibility of gain; it offers only the chance of a loss or no loss, no gain Speculative Risk - CORRECT ANSWER-Chance of loss or gain Hazards - CORRECT ANSWER-Conditions or situations that increase the probability of an insured loss occurring. Morale Hazard - CORRECT ANSWER-indifference Three types of hazards - CORRECT ANSWER-Physical, Moral, Morale Causes of loss - CORRECT ANSWER-Perils Loss - CORRECT ANSWER-The reduction, decrease, or disappearance of value of the person or property insured in a policy, by a peril insured against. hazard lead to perils which lead to what - CORRECT ANSWER-loss which lead to insurance Risk Retention - CORRECT ANSWER-Planned assumption of risk by an insured through the use of deductibles, co-payments, or self-insurance. Most effective way to handle risk - CORRECT ANSWER-transfer Adverse Selection - CORRECT ANSWER-if you are a higher risk, your premiums will be more Which risk is NOT insurable? - CORRECT ANSWER-Speculative Law of Large Numbers - CORRECT ANSWER-The larger the number of people with a similar exposure to loss, the more predictable actual loss will be Nonparticipating - CORRECT ANSWER-Stock companies Participating - CORRECT ANSWER-Mutual companies Mutual companies are owned by - CORRECT ANSWER-Policyowners Certificate of Authority - CORRECT ANSWER-same as license Authorized/Admitted - CORRECT ANSWER-Insurers who meet the state's financial requirements and are approved to transact business in the state Domestic Insurer - CORRECT ANSWER-An insurance company that is incorporated in the state. Foreign Insurer - CORRECT ANSWER-An insurance company that is incorporated in another state A company chartered in California would be a foreign company within the state of New York - CORRECT ANSWER-Example of Foreign Insurer Alien Insurer - CORRECT ANSWER-An insurance company that is incorporated outside the United States. Reinsurance - CORRECT ANSWER-an arrangement by which the primary insurer that initially writes the insurance transfers to another insurer part or all of the potential losses associated with such insurance Law of Agency - CORRECT ANSWER-The law that governs the relationship between a principal and his or her agent. 3 types of agent authority - CORRECT ANSWER-express, implied, apparent Authority written in the contract - CORRECT ANSWER-Express Authority Not expressed or written in the contract, but which agent is assumed to have in order to conduct business - CORRECT ANSWER-Implied Authority The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. - CORRECT ANSWER-Apparent Authority Also known as Apparent Authority - CORRECT ANSWER-Perceived Fidicuary - CORRECT ANSWER-Someone who is responsible for the management of someone else's money; trust