Health Insurance (Exam FX)questions with
correct answers
Agent/Producer - ...,.🔹VERIFIED ANSWER **✔✔A legal
representative of an insurance company
Broker - ...,.🔹VERIFIED ANSWER **✔✔An insurance producer
not appointed by an insurer and whom represents the client
Insured - ...,.🔹VERIFIED ANSWER **✔✔A person covered by an
insurance policy
Insurance policy - ...,.🔹VERIFIED ANSWER **✔✔A legal
contract between a policyowner (and/or insured) and an insurance
company which agrees to pay the insured/beneficiary for losses
caused by specific events
Principal - ...,.🔹VERIFIED ANSWER **✔✔Insurer, company who
issues insurance policies
1 \\\\\\/ \\\\\\
28
,Policyowner - ...,.🔹VERIFIED ANSWER **✔✔The person entitled
to exercise the rights and privileges in a policy
Premium - ...,.🔹VERIFIED ANSWER **✔✔The money paid to the
insurance company for the insurance policy
Reciprocal - ...,.🔹VERIFIED ANSWER **✔✔A mutual
interchange of rights and privileges
Risk - ...,.🔹VERIFIED ANSWER **✔✔Chance of a loss occurring
Pure Risk - ...,.🔹VERIFIED ANSWER **✔✔Situations that can
only result in a loss
Speculative Risk - ...,.🔹VERIFIED ANSWER **✔✔Situations that
can result in either a loss or gain
Hazard - ...,.🔹VERIFIED ANSWER **✔✔Conditions or situations
that increase the chance of a loss occurring
Physical Hazard - ...,.🔹VERIFIED ANSWER **✔✔Individual
2 \\\\\\/ \\\\\\
28
, characteristics that increase the chance of a loss (i.e. past medical
history, blindness)
Moral Hazard - ...,.🔹VERIFIED ANSWER **✔✔Tendencies
towards increasing risk such as lying on applications or submitting
fraudulent claims
Morale Hazard - ...,.🔹VERIFIED ANSWER **✔✔Arise from a
state of mind that causes indifference to loss such as carelessness
Peril - ...,.🔹VERIFIED ANSWER **✔✔Specific cause of a loss
such as death, sickness or accidents
Loss - ...,.🔹VERIFIED ANSWER **✔✔Reduction, decrease, or
disappearance of value of the person or property caused by a named
peril
Sharing - ...,.🔹VERIFIED ANSWER **✔✔Method of dealing with
risk where a group with the same or similar exposure to loss divvy
up the losses that occur within that group; reciprocal insurance
exchange is a formal risk-[ ? ] arrangement
3 \\\\\\/ \\\\\\
28
correct answers
Agent/Producer - ...,.🔹VERIFIED ANSWER **✔✔A legal
representative of an insurance company
Broker - ...,.🔹VERIFIED ANSWER **✔✔An insurance producer
not appointed by an insurer and whom represents the client
Insured - ...,.🔹VERIFIED ANSWER **✔✔A person covered by an
insurance policy
Insurance policy - ...,.🔹VERIFIED ANSWER **✔✔A legal
contract between a policyowner (and/or insured) and an insurance
company which agrees to pay the insured/beneficiary for losses
caused by specific events
Principal - ...,.🔹VERIFIED ANSWER **✔✔Insurer, company who
issues insurance policies
1 \\\\\\/ \\\\\\
28
,Policyowner - ...,.🔹VERIFIED ANSWER **✔✔The person entitled
to exercise the rights and privileges in a policy
Premium - ...,.🔹VERIFIED ANSWER **✔✔The money paid to the
insurance company for the insurance policy
Reciprocal - ...,.🔹VERIFIED ANSWER **✔✔A mutual
interchange of rights and privileges
Risk - ...,.🔹VERIFIED ANSWER **✔✔Chance of a loss occurring
Pure Risk - ...,.🔹VERIFIED ANSWER **✔✔Situations that can
only result in a loss
Speculative Risk - ...,.🔹VERIFIED ANSWER **✔✔Situations that
can result in either a loss or gain
Hazard - ...,.🔹VERIFIED ANSWER **✔✔Conditions or situations
that increase the chance of a loss occurring
Physical Hazard - ...,.🔹VERIFIED ANSWER **✔✔Individual
2 \\\\\\/ \\\\\\
28
, characteristics that increase the chance of a loss (i.e. past medical
history, blindness)
Moral Hazard - ...,.🔹VERIFIED ANSWER **✔✔Tendencies
towards increasing risk such as lying on applications or submitting
fraudulent claims
Morale Hazard - ...,.🔹VERIFIED ANSWER **✔✔Arise from a
state of mind that causes indifference to loss such as carelessness
Peril - ...,.🔹VERIFIED ANSWER **✔✔Specific cause of a loss
such as death, sickness or accidents
Loss - ...,.🔹VERIFIED ANSWER **✔✔Reduction, decrease, or
disappearance of value of the person or property caused by a named
peril
Sharing - ...,.🔹VERIFIED ANSWER **✔✔Method of dealing with
risk where a group with the same or similar exposure to loss divvy
up the losses that occur within that group; reciprocal insurance
exchange is a formal risk-[ ? ] arrangement
3 \\\\\\/ \\\\\\
28
