Iowa Insurance Exam UPDATED Study
Guide QUESTIONS AND CORRECT
ANSWERS
Reserve - CORRECT ANSWERS funds held by a company to help fulfill
future claims. Minimum Reserves are usually set by the state Department of
Insurance
Multi-line Insurer - CORRECT ANSWERS an insurance company or
independent agent that provides a one-stop shop for businesses or individuals
seeking coverage for all their insurance needs
stock companies - CORRECT ANSWERS insurance companies owned
and controlled by a group of stockholders whose investment in the company
provides the safety margin necessary in issuance of guaranteed, fixed premium
nonparticipating policies
nonparticipating plan - CORRECT ANSWERS insurance under which
the insured is not entitled to share in the divisible surplus of the company
mutual companies - CORRECT ANSWERS insurance companies
characterized by having no capital stock; it is owned by its policy owners and
usually issues participating insurance
Participating plan of insurance - CORRECT ANSWERS a plan under
which the policy owner receives shares (commonly called dividends) of the
divisible surplus of the company
reinsurer - CORRECT ANSWERS a company that provides financial
protection to insurance companies. Handle risks that are too large for insurance
companies to handle on thier own and make it possible for insurers to obtain
more business than they would otherwise be able to do.
,fair credit reporting act - CORRECT ANSWERS a federal law requiring
an individual to be infromed if she is being investigated by an inspection
company.
Buyers guide - CORRECT ANSWERS informational consumer guide
books that explain insurance policaies and insurance concepts
policy summary - CORRECT ANSWERS summary of the terms of an
insurance policy, including conditions, coverage limitations, and premiums
national association of insurance commissioner - CORRECT ANSWERS
an association of all the state insurance commissioners active in
insurance regulatory problems and in forming and recommending model
legislation and requirements.
the state guaranty association - CORRECT ANSWERS established by
each state to support insurers and protect consumers in the case of insurer
insolvency, guaranty associations are funded by insurers through assessments.
term life insurance - CORRECT ANSWERS insurance against loss due
to the death of a particular person upon whose death the insurance company
agrees to pay a stated sum or income to the beneficiary.
whole life - CORRECT ANSWERS permanent level insurance protection
for a persons "whole of life"
group life - CORRECT ANSWERS a type of life insurance in which a
single contract covers an entire group of people.
,consideration - CORRECT ANSWERS the part of an insurance contract
setting forth the amount of initial and renewal premiums and frequency of
future payments.
entire contract - CORRECT ANSWERS an insurance policy provision
stating that the application and policy contain all provisions and constitute the
entire contract
notice of claim - CORRECT ANSWERS a policy provision that
describes the policy owners obligation to provide notification of loss to the
insurer within a reasonable period of time. requires the insurance company be
notified of a loss, it does not require that proof of loss is provided.
resinstatement - CORRECT ANSWERS the act of putting a lapsed policy
back in teh force by producing satisfactory evidence of insurability and paying
any past-due premiums required.
deductible - CORRECT ANSWERS the amount of expense of loss to be
paid by the insured before an insurance policy starts paying benefits.
subrogation - CORRECT ANSWERS the right for an insurer to pursue a
third party that caused an insurance loss to be insured.
businesses use of health insurance - CORRECT ANSWERS 1. business
continuation plans to continue the operation of a business in teh event of a
disabling sickness or injury to a business owner or key employee.
2. employee benefit plans to help an employee in the event of a disabling
sickness or injury.
, business overhead expense insurance - CORRECT ANSWERS designed
to reimburse a business for overhead expenses in teh event a business owner
becomes disabled.
disability buy-sell plan AKA disability buy-outs - CORRECT ANSWERS
designed to assist in the sale of business in the event of the disability of a
business owner. the plan sets forth the terms for selling and buying a partners or
stock owners share of a business in the event she befcomes disables and is no
longer able to participate in business.
Key person disability insurance - CORRECT ANSWERS pays a monthly
benefit to a business to cover expenses for additional help or outside services
when an essential person is disabled.
4 elements of the contract - CORRECT ANSWERS 1. consideration
2. legal purpose
3. offer and acceptance
4. competent parties
contract of adhesion - CORRECT ANSWERS there is only one author -
the insurance company bc it has been prepared for the insured.
aleatory contract - CORRECT ANSWERS insurance contracts are
aleatory, which means there is an unequal exchange. the premiums paid by the
applicant is small in relation to the amount that will be paid by the insurance
company.
unilateral contact - CORRECT ANSWERS one sided agreement, where
only the insurer is legally bound.
Guide QUESTIONS AND CORRECT
ANSWERS
Reserve - CORRECT ANSWERS funds held by a company to help fulfill
future claims. Minimum Reserves are usually set by the state Department of
Insurance
Multi-line Insurer - CORRECT ANSWERS an insurance company or
independent agent that provides a one-stop shop for businesses or individuals
seeking coverage for all their insurance needs
stock companies - CORRECT ANSWERS insurance companies owned
and controlled by a group of stockholders whose investment in the company
provides the safety margin necessary in issuance of guaranteed, fixed premium
nonparticipating policies
nonparticipating plan - CORRECT ANSWERS insurance under which
the insured is not entitled to share in the divisible surplus of the company
mutual companies - CORRECT ANSWERS insurance companies
characterized by having no capital stock; it is owned by its policy owners and
usually issues participating insurance
Participating plan of insurance - CORRECT ANSWERS a plan under
which the policy owner receives shares (commonly called dividends) of the
divisible surplus of the company
reinsurer - CORRECT ANSWERS a company that provides financial
protection to insurance companies. Handle risks that are too large for insurance
companies to handle on thier own and make it possible for insurers to obtain
more business than they would otherwise be able to do.
,fair credit reporting act - CORRECT ANSWERS a federal law requiring
an individual to be infromed if she is being investigated by an inspection
company.
Buyers guide - CORRECT ANSWERS informational consumer guide
books that explain insurance policaies and insurance concepts
policy summary - CORRECT ANSWERS summary of the terms of an
insurance policy, including conditions, coverage limitations, and premiums
national association of insurance commissioner - CORRECT ANSWERS
an association of all the state insurance commissioners active in
insurance regulatory problems and in forming and recommending model
legislation and requirements.
the state guaranty association - CORRECT ANSWERS established by
each state to support insurers and protect consumers in the case of insurer
insolvency, guaranty associations are funded by insurers through assessments.
term life insurance - CORRECT ANSWERS insurance against loss due
to the death of a particular person upon whose death the insurance company
agrees to pay a stated sum or income to the beneficiary.
whole life - CORRECT ANSWERS permanent level insurance protection
for a persons "whole of life"
group life - CORRECT ANSWERS a type of life insurance in which a
single contract covers an entire group of people.
,consideration - CORRECT ANSWERS the part of an insurance contract
setting forth the amount of initial and renewal premiums and frequency of
future payments.
entire contract - CORRECT ANSWERS an insurance policy provision
stating that the application and policy contain all provisions and constitute the
entire contract
notice of claim - CORRECT ANSWERS a policy provision that
describes the policy owners obligation to provide notification of loss to the
insurer within a reasonable period of time. requires the insurance company be
notified of a loss, it does not require that proof of loss is provided.
resinstatement - CORRECT ANSWERS the act of putting a lapsed policy
back in teh force by producing satisfactory evidence of insurability and paying
any past-due premiums required.
deductible - CORRECT ANSWERS the amount of expense of loss to be
paid by the insured before an insurance policy starts paying benefits.
subrogation - CORRECT ANSWERS the right for an insurer to pursue a
third party that caused an insurance loss to be insured.
businesses use of health insurance - CORRECT ANSWERS 1. business
continuation plans to continue the operation of a business in teh event of a
disabling sickness or injury to a business owner or key employee.
2. employee benefit plans to help an employee in the event of a disabling
sickness or injury.
, business overhead expense insurance - CORRECT ANSWERS designed
to reimburse a business for overhead expenses in teh event a business owner
becomes disabled.
disability buy-sell plan AKA disability buy-outs - CORRECT ANSWERS
designed to assist in the sale of business in the event of the disability of a
business owner. the plan sets forth the terms for selling and buying a partners or
stock owners share of a business in the event she befcomes disables and is no
longer able to participate in business.
Key person disability insurance - CORRECT ANSWERS pays a monthly
benefit to a business to cover expenses for additional help or outside services
when an essential person is disabled.
4 elements of the contract - CORRECT ANSWERS 1. consideration
2. legal purpose
3. offer and acceptance
4. competent parties
contract of adhesion - CORRECT ANSWERS there is only one author -
the insurance company bc it has been prepared for the insured.
aleatory contract - CORRECT ANSWERS insurance contracts are
aleatory, which means there is an unequal exchange. the premiums paid by the
applicant is small in relation to the amount that will be paid by the insurance
company.
unilateral contact - CORRECT ANSWERS one sided agreement, where
only the insurer is legally bound.
