Oklahoma life and health Insurance Questions with
Detailed Verified Answers (100% Correct Answers)
/Already Graded A+
Sharing Answer: Sometimes, when a risk cannot be avoided and retention
would involve too much exposure to loss, we may choose risk sharing as a
means of handling the risk.
Transfer Answer: Means transferring the risk of loss to another party, usually
an insurance company, that is more willing or able to bear the risk. Some non-
insurance transfers of risk occur, such as when one agrees to assume the risk
of another under the terms of a written contract.
Avoidance Answer: As the name implies, this technique deals with risk by
avoiding the risk in the first place.
Reduction Answer: Sometimes, when risks cannot be avoided, they can be
reduced.
Retention Answer: People assume or retain the risk and, in effect, become
self-insurers.
Law of Large Numbers Answer: Basic principle of insurance that the larger the
number of individual risks combined into a group, the more certainty there is
in predicting the degree or amount of loss that will be incurred in any given
period.
Insurable Interest Answer: Requirement of insurance contracts that loss must
be sustained by the applicant upon the death or disability of another and loss
must be sufficient to warrant compensation.
Indemnity Answer: No more, no less. Returned to condition it was before loss.
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, Subrogation Answer: Entitles one who has paid for another's loss to take over
the other's right to recourse from the party responsible for the loss.
Deductible Answer: Simply the initial amount of a covered loss (or losses) that
the insured must absorb before the insurer begins to pay for additional loss
amounts.
Elimination Period Answer: The number of days an insured must be disabled
before disability income benefits become payable.
Coinsurance (percentage participation) Answer: Principle under which the
company insures only part of the potential loss, the policyowners paying the
other part. For instance, in a major medical policy, the company may agree to
pay 75% of the insured expenses, with the insured to pay the other 25%
Property Insurance Answer: Protects the insured against the financial
consequences of the direct or consequential loss or damage to property of
every kind.
Casualty Insurance Answer: Another word for liability insurance
Life Insurance Answer: Insurance coverage on human lives, including
endowments and annuities, and may include benefits in the event of
accidental death or dismemberment and benefits for disability.
Annuity Answer: The opposite of life insurance, they are designed to protect
against the risk of living too long—that is, outliving one's financial resources
during retirement.
A&H insurance Answer: Insurance protects the insured against financial loss
caused by sickness, bodily injury, or accidental death and may include benefits
for disability income.
© 2025 Get it right Stuvia US All rights reserved
Detailed Verified Answers (100% Correct Answers)
/Already Graded A+
Sharing Answer: Sometimes, when a risk cannot be avoided and retention
would involve too much exposure to loss, we may choose risk sharing as a
means of handling the risk.
Transfer Answer: Means transferring the risk of loss to another party, usually
an insurance company, that is more willing or able to bear the risk. Some non-
insurance transfers of risk occur, such as when one agrees to assume the risk
of another under the terms of a written contract.
Avoidance Answer: As the name implies, this technique deals with risk by
avoiding the risk in the first place.
Reduction Answer: Sometimes, when risks cannot be avoided, they can be
reduced.
Retention Answer: People assume or retain the risk and, in effect, become
self-insurers.
Law of Large Numbers Answer: Basic principle of insurance that the larger the
number of individual risks combined into a group, the more certainty there is
in predicting the degree or amount of loss that will be incurred in any given
period.
Insurable Interest Answer: Requirement of insurance contracts that loss must
be sustained by the applicant upon the death or disability of another and loss
must be sufficient to warrant compensation.
Indemnity Answer: No more, no less. Returned to condition it was before loss.
© 2025 Get it right Stuvia US All rights reserved
, Subrogation Answer: Entitles one who has paid for another's loss to take over
the other's right to recourse from the party responsible for the loss.
Deductible Answer: Simply the initial amount of a covered loss (or losses) that
the insured must absorb before the insurer begins to pay for additional loss
amounts.
Elimination Period Answer: The number of days an insured must be disabled
before disability income benefits become payable.
Coinsurance (percentage participation) Answer: Principle under which the
company insures only part of the potential loss, the policyowners paying the
other part. For instance, in a major medical policy, the company may agree to
pay 75% of the insured expenses, with the insured to pay the other 25%
Property Insurance Answer: Protects the insured against the financial
consequences of the direct or consequential loss or damage to property of
every kind.
Casualty Insurance Answer: Another word for liability insurance
Life Insurance Answer: Insurance coverage on human lives, including
endowments and annuities, and may include benefits in the event of
accidental death or dismemberment and benefits for disability.
Annuity Answer: The opposite of life insurance, they are designed to protect
against the risk of living too long—that is, outliving one's financial resources
during retirement.
A&H insurance Answer: Insurance protects the insured against financial loss
caused by sickness, bodily injury, or accidental death and may include benefits
for disability income.
© 2025 Get it right Stuvia US All rights reserved
