EXAM FX LIFE AND HEALTH TIP SHEET
Perilsg-gans--thegcausegofgloss
PolicygOwnerg-gans--thegpersongwhoghasgthegrightsgandgprivilegesgingthegpolicy
Riskg-gans--Uncertaintygorgchancegofgloss
-PuregRisk(Insurable)
-Speculative(Uninsurable)
Insuredg-gans--thegpersongcoveredgbygtheginsurancegpolicy
insurerg-gans--agcompanygthatgissuesganginsurancegpolicy
Lawgofglargegnumbersg-gans--
theglargergthegnumbergofgpeoplegwithgthegsamegexposuregtogloss,gthegmoregpredictablegth
egactualglossgwillgbe.
InsurancegTransactiong-gans--solicitation,gnegotiation,gorgeffectuationgofgagcontract.
Insuranceg-gans--transfergofgriskgofglossgfromgangindividualgtoganginsurer
Indeminityg-gans--restoringgtheginsuredgtogthegconditiongthatgexistedgbeforegloss.
Agent/Producerg-gans--Aglegalgrepresentativegofganginsurancegcompany,
Applicant/Proposedginsuredg-gans--agpersongapplyinggforginsurance
Hazardg-gans--conditionsgthatgincreasegthegprobailitygofgagloss
-Physicalg(physicalgconditions)
-Moralg(tendencygtowardgincreasegrisk)
-Moraleg(indifferencegtogloss)
AdversegSelectiong-gans--Insuringgofgrisksgmoregpronegtoglossgthangthegaveragegrisk
TypesgofgInsuresg-gans--Ownership
-Stockg(nonparticipating)
Mutualg(participating)
, AuthoritygtogTransactgBusiness
-Admitted/Authorizedg(havegagcertificategofgAuthority)
-Nonadmitted/Unauthorized
Location
-Domestic(thisgstate)
-Foreigng(anothergstategorgprovince)
Allieng(anothergcountry)
InsurancegContractg-gans--4gRequiredgElements:
-Agreementg(offergandgacceptance)
-Considerationg(exchangegofgsomethinggofgvalue)
-Competentgpartiesg(ofglegalgagegandgmentallygcompetent)
-Legalgpurposeg(mustghavegInsurableginterestgandgconsent)
ContractgCharacteristicsg-gans---Personalg(betweenganginsurergandgindividualg)
-Aleatoryg(exchangegofgunequalgvalues)
-Unilateralg(onlygonegpartygisglegallygboundgtogagcontract)
-Adhesiong(contractsgaregacceptedgbugthegapplicantsgasgis)
-Conditionalg(bothgpartiesgmustgmeetgcertaingconditions)
LegalgTermsg-gans---
Representationg(agStatementgbelievedgtogbegtruegtogthegbestgofgones'sgknowledge)
Misrepresentationg(anguntruegstatementgongtheginsurancegapplication)g
-
Materialgmisrepresentationg(agstatementgthat,gifgdiscovered,gcangaltergthegunderwritinggde
cision)
-Warrantyg(Angabsolutelygtruegstatement)
Concealmentg(Intentionalgwithholdinggofgmaterialginformation)
-Fraudg(intentionalgactgwithgthegpurposegofgdeceiving)
IdeallygInsurablegRiskg-gans---Duegtogchance
-Definitegandgmeasurable
-Statisticallygpredictable
-Notgcatastrophic
-Randomlygselectedgfromgaglargegpool
LawgofgAgencyg-gans--
actsgofgthegagentsgwithingthegscopegofgtheirgauthoritygaregdeemedgtogbegthegactsgofgthegin
surer.gAgentsghaveg3gtypesgofgauthority.
3gTypesgofgauthorityg-gans---Expressg(writtengingthegcontract)
-Impliedg(assumedgnecessarygtogconductgbusiness
-Apparentg(basedgongagentsgwordsgandgactions)
Perilsg-gans--thegcausegofgloss
PolicygOwnerg-gans--thegpersongwhoghasgthegrightsgandgprivilegesgingthegpolicy
Riskg-gans--Uncertaintygorgchancegofgloss
-PuregRisk(Insurable)
-Speculative(Uninsurable)
Insuredg-gans--thegpersongcoveredgbygtheginsurancegpolicy
insurerg-gans--agcompanygthatgissuesganginsurancegpolicy
Lawgofglargegnumbersg-gans--
theglargergthegnumbergofgpeoplegwithgthegsamegexposuregtogloss,gthegmoregpredictablegth
egactualglossgwillgbe.
InsurancegTransactiong-gans--solicitation,gnegotiation,gorgeffectuationgofgagcontract.
Insuranceg-gans--transfergofgriskgofglossgfromgangindividualgtoganginsurer
Indeminityg-gans--restoringgtheginsuredgtogthegconditiongthatgexistedgbeforegloss.
Agent/Producerg-gans--Aglegalgrepresentativegofganginsurancegcompany,
Applicant/Proposedginsuredg-gans--agpersongapplyinggforginsurance
Hazardg-gans--conditionsgthatgincreasegthegprobailitygofgagloss
-Physicalg(physicalgconditions)
-Moralg(tendencygtowardgincreasegrisk)
-Moraleg(indifferencegtogloss)
AdversegSelectiong-gans--Insuringgofgrisksgmoregpronegtoglossgthangthegaveragegrisk
TypesgofgInsuresg-gans--Ownership
-Stockg(nonparticipating)
Mutualg(participating)
, AuthoritygtogTransactgBusiness
-Admitted/Authorizedg(havegagcertificategofgAuthority)
-Nonadmitted/Unauthorized
Location
-Domestic(thisgstate)
-Foreigng(anothergstategorgprovince)
Allieng(anothergcountry)
InsurancegContractg-gans--4gRequiredgElements:
-Agreementg(offergandgacceptance)
-Considerationg(exchangegofgsomethinggofgvalue)
-Competentgpartiesg(ofglegalgagegandgmentallygcompetent)
-Legalgpurposeg(mustghavegInsurableginterestgandgconsent)
ContractgCharacteristicsg-gans---Personalg(betweenganginsurergandgindividualg)
-Aleatoryg(exchangegofgunequalgvalues)
-Unilateralg(onlygonegpartygisglegallygboundgtogagcontract)
-Adhesiong(contractsgaregacceptedgbugthegapplicantsgasgis)
-Conditionalg(bothgpartiesgmustgmeetgcertaingconditions)
LegalgTermsg-gans---
Representationg(agStatementgbelievedgtogbegtruegtogthegbestgofgones'sgknowledge)
Misrepresentationg(anguntruegstatementgongtheginsurancegapplication)g
-
Materialgmisrepresentationg(agstatementgthat,gifgdiscovered,gcangaltergthegunderwritinggde
cision)
-Warrantyg(Angabsolutelygtruegstatement)
Concealmentg(Intentionalgwithholdinggofgmaterialginformation)
-Fraudg(intentionalgactgwithgthegpurposegofgdeceiving)
IdeallygInsurablegRiskg-gans---Duegtogchance
-Definitegandgmeasurable
-Statisticallygpredictable
-Notgcatastrophic
-Randomlygselectedgfromgaglargegpool
LawgofgAgencyg-gans--
actsgofgthegagentsgwithingthegscopegofgtheirgauthoritygaregdeemedgtogbegthegactsgofgthegin
surer.gAgentsghaveg3gtypesgofgauthority.
3gTypesgofgauthorityg-gans---Expressg(writtengingthegcontract)
-Impliedg(assumedgnecessarygtogconductgbusiness
-Apparentg(basedgongagentsgwordsgandgactions)
