Nebraska Life and Health Insurance Exam
-1 agents represents 1 company
-exclusive agency
-commissions on personal sales
-renewals placed with appointing insurer - ANS-Exclusive Agency System/Captive Agents
(types of marketing arrangements)
-1 independent agent represents several companies
-nonexclusive agency
-commissions on personal sales
-business renewal with any company - ANS-Independent Agency System/ American Agency
System (types of marketing arrangements
-AM Best
-Fitch
-Standard and Poor's
-Moody's
-Weiss - ANS-Insurance companies financial integrity are published by:
-branch manager
-salaried
-agents can be employees or independent agents - ANS-Managerial System (types of
marketing arrangements)
-conflict of interest
-a request of a gift or loan as a condition to complete business
-supplying confidential information - ANS-Some market conduct regulations include, but are not
limited to:
-General Agent-entrepreneur represents 1 company
-exclusive agency
-compensation and commissions
-appoints subagents - ANS-General Agency System (types of marketing arrangements)
-no agents
-advertise directly to consumers
-consumers apply directly to company - ANS-Direct Response Marketing System (types of
marketing arrangements)
1. agreement
2. consideration
, 3. competent parties
4. legal purpose - ANS-Elements of a legal contract
1. to reduce expenses, increase cash flow
2. to increase control of claim reserving and claims settlements
3. to fund losses that cannon be insured - ANS-What is the purpose of retention?
a contract in which 1 party (insurance company) agrees to indemnify (make whole) the insured
party against loss, damage, or a liability arising from an unknown event. - ANS-What is
Insurance?
a loss that is outside the insured's control - ANS-Due to chance
a loss that is specific as to the cause, time, place, and amount. An insurer must be able to
determine how much the benefit will be and when it becomes payable - ANS-Definite and
measurable
a policy that protects survivors from losses suffered after an insured's death - ANS-What is life
insurance?
A reciprocal insurance exchange - ANS-What is a formal risk sharing agreement?
actions taken to lessen possibility or severity of a loss - ANS-Reduction
actions taken without forethought may cause physical injuries - ANS-example of morale hazard
age of insured, medical history, occupation, sex - ANS-What are factors considered in
determining rates for life insurance?
although agents act for insurers they are legally obligated to treat applicants and insureds in an
ethical manner because an agent handles funds of an insured - ANS-Fiduciary responsibility
an entity which offers insurance to groups of like businesses with similar exposure to risk -
ANS-Risk Purchasing Group
an individual licensed to sell/solicit or negotiate insurance contracts on behalf of insurer -
ANS-Agent
applicants who may lie on an application for insurance or in the past have submitted fraudulent
claims against an insurer - ANS-example of moral hazard
are statements believed to be true to the best of one's knowledge, but are not guaranteed to be
true - ANS-Representations
-1 agents represents 1 company
-exclusive agency
-commissions on personal sales
-renewals placed with appointing insurer - ANS-Exclusive Agency System/Captive Agents
(types of marketing arrangements)
-1 independent agent represents several companies
-nonexclusive agency
-commissions on personal sales
-business renewal with any company - ANS-Independent Agency System/ American Agency
System (types of marketing arrangements
-AM Best
-Fitch
-Standard and Poor's
-Moody's
-Weiss - ANS-Insurance companies financial integrity are published by:
-branch manager
-salaried
-agents can be employees or independent agents - ANS-Managerial System (types of
marketing arrangements)
-conflict of interest
-a request of a gift or loan as a condition to complete business
-supplying confidential information - ANS-Some market conduct regulations include, but are not
limited to:
-General Agent-entrepreneur represents 1 company
-exclusive agency
-compensation and commissions
-appoints subagents - ANS-General Agency System (types of marketing arrangements)
-no agents
-advertise directly to consumers
-consumers apply directly to company - ANS-Direct Response Marketing System (types of
marketing arrangements)
1. agreement
2. consideration
, 3. competent parties
4. legal purpose - ANS-Elements of a legal contract
1. to reduce expenses, increase cash flow
2. to increase control of claim reserving and claims settlements
3. to fund losses that cannon be insured - ANS-What is the purpose of retention?
a contract in which 1 party (insurance company) agrees to indemnify (make whole) the insured
party against loss, damage, or a liability arising from an unknown event. - ANS-What is
Insurance?
a loss that is outside the insured's control - ANS-Due to chance
a loss that is specific as to the cause, time, place, and amount. An insurer must be able to
determine how much the benefit will be and when it becomes payable - ANS-Definite and
measurable
a policy that protects survivors from losses suffered after an insured's death - ANS-What is life
insurance?
A reciprocal insurance exchange - ANS-What is a formal risk sharing agreement?
actions taken to lessen possibility or severity of a loss - ANS-Reduction
actions taken without forethought may cause physical injuries - ANS-example of morale hazard
age of insured, medical history, occupation, sex - ANS-What are factors considered in
determining rates for life insurance?
although agents act for insurers they are legally obligated to treat applicants and insureds in an
ethical manner because an agent handles funds of an insured - ANS-Fiduciary responsibility
an entity which offers insurance to groups of like businesses with similar exposure to risk -
ANS-Risk Purchasing Group
an individual licensed to sell/solicit or negotiate insurance contracts on behalf of insurer -
ANS-Agent
applicants who may lie on an application for insurance or in the past have submitted fraudulent
claims against an insurer - ANS-example of moral hazard
are statements believed to be true to the best of one's knowledge, but are not guaranteed to be
true - ANS-Representations
