Maryland State Health and Life Insurance Exam questions with correct answers

Maryland State Health and Life Insurance
Exam questions with correct answers


Insurance - ...,.🔹VERIFIED ANSWER **✔✔The device for
transferring the chance of financial loss among a large number of
people.


Risk - ...,.🔹VERIFIED ANSWER **✔✔The possibility or
chance/occurrence of loss that may occur.


Speculative Risk - ...,.🔹VERIFIED ANSWER **✔✔A risk for
which it is uncertain as to whether the final outcome is a gain or
loss. This type is NOT insurable.


Pure Risk - ...,.🔹VERIFIED ANSWER **✔✔The probability or
possibility of a loss with no chance of gain. This type IS insurable.


Loss - ...,.🔹VERIFIED ANSWER **✔✔The unintentional
reduction, decrease, or disappearance of value of a person or
property insured by a policy.



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, Exposure - ...,.🔹VERIFIED ANSWER **✔✔A measure of
vulnerability of a loss, and is usually expressed in dollars or units
that are used to determine rates charged for insurance.


Exposure Units - ...,.🔹VERIFIED ANSWER **✔✔Used in
determining rates. i.e; Medical history, age, sex, and occupation of
an insured.


Hazards - ...,.🔹VERIFIED ANSWER **✔✔Circumstances or
conditions that increase the possibility that a loss will take place.
i.e; storing explosives in a home's basement.


Physical Hazard - ...,.🔹VERIFIED ANSWER **✔✔A hazard that
cause one's body to become physically stressed and increase the
chance of loss. i.e; lifestyle, slippery floors, skydiving.


Moral Hazard - ...,.🔹VERIFIED ANSWER **✔✔Hazards that are
a result of maximizing behavior. i.e; when a person is dishonest,
creates a loss, or lies on an application.




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