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Alabama life insurance test Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
The best definition of risk?
Ans: Chance of loss.
Producer appointed by one company on an exclusive basis is a.
Ans: Captive agent
Predicting the likelihood of sickness or accident occurring among groups of
people according to age, occupation or some other factor.
Ans: Morbidity tables
Specialized property or liability coverage provided by a nonadmitted insurer is
called:
Ans: Excess and surplus lines
The larger the number of risks combined into one group, the less uncertainty
there will be as to the amount of loss that will be incurred.
Ans: The law of large numbers
The specific cause of a loss:
Ans: Peril
Represents several insurance companies and owns their book of buisness.
Ans: Independent agent
Self insurance is what type or risk management technique?
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Ans: Retention
A risk that involves both chance of loss or gain:
Ans: Speculative risk
A person or business may use this method to transfer risk.
Ans: Hold-harmless agreement and insurance
What characteristic of an insurable risk uses the law of large numbers?
Ans: Predictable loss
Mathematicians who study and compile statistical data for insurance companies
are called:
Ans: Actuaries
An individuals careless actions or attitudes may be a Hazzard if a loss occurs as
a result of them describes whatever type of hazard?
Ans: Morale
Insurance company that would typically issue non-par policies?
Ans: Stock company
An insurance company owned by its policyholders would be what type of
company?
Ans: Mutual company
A society that provides a meeting facility and administrative service to its
members to underwrite and accept risks is called:
Ans: Lloyd's associatiom
Reinsurance is negotiated separately for each insurance contract that is insured is
called:
Ans: Facultative reinsurance.
Click here for more: Preppass - Stuvia
Alabama life insurance test Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
The best definition of risk?
Ans: Chance of loss.
Producer appointed by one company on an exclusive basis is a.
Ans: Captive agent
Predicting the likelihood of sickness or accident occurring among groups of
people according to age, occupation or some other factor.
Ans: Morbidity tables
Specialized property or liability coverage provided by a nonadmitted insurer is
called:
Ans: Excess and surplus lines
The larger the number of risks combined into one group, the less uncertainty
there will be as to the amount of loss that will be incurred.
Ans: The law of large numbers
The specific cause of a loss:
Ans: Peril
Represents several insurance companies and owns their book of buisness.
Ans: Independent agent
Self insurance is what type or risk management technique?
, Page | 2
Click here for more: Preppass - Stuvia
Ans: Retention
A risk that involves both chance of loss or gain:
Ans: Speculative risk
A person or business may use this method to transfer risk.
Ans: Hold-harmless agreement and insurance
What characteristic of an insurable risk uses the law of large numbers?
Ans: Predictable loss
Mathematicians who study and compile statistical data for insurance companies
are called:
Ans: Actuaries
An individuals careless actions or attitudes may be a Hazzard if a loss occurs as
a result of them describes whatever type of hazard?
Ans: Morale
Insurance company that would typically issue non-par policies?
Ans: Stock company
An insurance company owned by its policyholders would be what type of
company?
Ans: Mutual company
A society that provides a meeting facility and administrative service to its
members to underwrite and accept risks is called:
Ans: Lloyd's associatiom
Reinsurance is negotiated separately for each insurance contract that is insured is
called:
Ans: Facultative reinsurance.
