AGENT
ACCIDENT AND HEALTH INSURANCE
AGEN Practice Exam Questions
T With Verified
Solutions 100%
2024
Group Insurance - CORRECT ANSWERS-- the employer is the owner and
receives the master contract
- the employees are certificate holders which
outlines the details of it
- underwriting is much more liberal because its a large group and probably
wont have adverse selection
- if you want to get in at another time, employee has to show insurability
What do you need to get Social Secutiry - CORRECT ANSWERS-- You have
to work
for 40 qtrs or 10
years
Insurance Definition - CORRECT ANSWERS-- Transfer of risk from 1 party to
another
- To provide funds for medical expenses due to sickness or injury and to
cover loss of income during a disability
Indemnity - CORRECT ANSWERS-- To restore or make whole
again
- To bring back to the same condition
they had
prior to
loss
Risk - CORRECT ANSWERS-- the uncertainty or chance of loss
Mortality - CORRECT ANSWERS-- The
number of deaths
- helps determing
premium
Morbidity - CORRECT ANSWERS--The number of
disabled due to accident or
sickne
ss
Pure Risk - CORRECT ANSWERS-- Chance of loss
without any chance of gain
- only pure risk is
insurable
Speculative Risk - CORRECT ANSWERS-- Chance of loss or gain
x
x
x
, AGENT
What kind of Risks are insurable - CORRECT ANSWERS-- loss must be
accidental
- loss must be definite (or
measurable)
- must not be
catastrophic
- must be great enough to create
economic
hardshi
p
- premiums must be
reasonable
Retention - CORRECT ANSWERS--The personal acceptance of the loss
Peril - CORRECT ANSWERS-- The cause or source of a loss
Hazard - CORRECT ANSWERS-- increases the chance of a loss
What are the 3 types of Hazards - CORRECT
ANSWERS-- Physical
- Moral
(dishonesty)
- Morale
(carelessness)
Underwriting department - CORRECT ANSWERS--
Responsible for the selection of
risks to
insure
and determines the rate to be
charged for
coverag
e
Types of Insurance Companies - CORRECT ANSWERS-- Stock Companies
(nonparticipating)
- Mutual Companies (participating)
- Fraternal Organization
- Reciprocals and Assessment Insurers
- Self-Insurers
Domestic Insurance Co - CORRECT ANSWERS-- located in the
state it's doing
business
in
Foreign Insurance Co - CORRECT ANSWERS-- allowed to do business
in a state other
than
their
x
x
x
, AGENT
home
state
Alien Insurance Co - CORRECT ANSWERS-- authorized to conduct business in
any of the 50
states but who has its home office in another
country
Cerrtificate of Authority - CORRECT ANSWERS-- What an insurance
company needs
to have
in
order to operate in a
state
Fraternal Organization - CORRECT ANSWERS-- A non profit association and
only can
provid
e
insurance to its
members.
Reciprocal Organization - CORRECT ANSWERS-- A type of cooperative
insurance.
Eac
h
policyholder is insured by all other
policyholders.
Reinsurance - CORRECT ANSWERS-- Insurance between
insurers
- limits liability and prevents
catastrophic loss
An agent has 3 types of authority - CORRECT ANSWERS-- Expressed
authority - Implied Authority
- Apparent authority
Expressed Authority - CORRECT ANSWERS-- Written in a producer's contract
Implied Authority - CORRECT ANSWERS-- What the public assumes
the agent
possesse
s
Apparent Authority - CORRECT ANSWERS-- When a producer
oversteps actual
authori
ty
The law of contracts - 4 elements of a contract - CORRECT ANSWERS--
Agreement - Consideration - Legal Purpose
- Competent Parties
x
x
x
ACCIDENT AND HEALTH INSURANCE
AGEN Practice Exam Questions
T With Verified
Solutions 100%
2024
Group Insurance - CORRECT ANSWERS-- the employer is the owner and
receives the master contract
- the employees are certificate holders which
outlines the details of it
- underwriting is much more liberal because its a large group and probably
wont have adverse selection
- if you want to get in at another time, employee has to show insurability
What do you need to get Social Secutiry - CORRECT ANSWERS-- You have
to work
for 40 qtrs or 10
years
Insurance Definition - CORRECT ANSWERS-- Transfer of risk from 1 party to
another
- To provide funds for medical expenses due to sickness or injury and to
cover loss of income during a disability
Indemnity - CORRECT ANSWERS-- To restore or make whole
again
- To bring back to the same condition
they had
prior to
loss
Risk - CORRECT ANSWERS-- the uncertainty or chance of loss
Mortality - CORRECT ANSWERS-- The
number of deaths
- helps determing
premium
Morbidity - CORRECT ANSWERS--The number of
disabled due to accident or
sickne
ss
Pure Risk - CORRECT ANSWERS-- Chance of loss
without any chance of gain
- only pure risk is
insurable
Speculative Risk - CORRECT ANSWERS-- Chance of loss or gain
x
x
x
, AGENT
What kind of Risks are insurable - CORRECT ANSWERS-- loss must be
accidental
- loss must be definite (or
measurable)
- must not be
catastrophic
- must be great enough to create
economic
hardshi
p
- premiums must be
reasonable
Retention - CORRECT ANSWERS--The personal acceptance of the loss
Peril - CORRECT ANSWERS-- The cause or source of a loss
Hazard - CORRECT ANSWERS-- increases the chance of a loss
What are the 3 types of Hazards - CORRECT
ANSWERS-- Physical
- Moral
(dishonesty)
- Morale
(carelessness)
Underwriting department - CORRECT ANSWERS--
Responsible for the selection of
risks to
insure
and determines the rate to be
charged for
coverag
e
Types of Insurance Companies - CORRECT ANSWERS-- Stock Companies
(nonparticipating)
- Mutual Companies (participating)
- Fraternal Organization
- Reciprocals and Assessment Insurers
- Self-Insurers
Domestic Insurance Co - CORRECT ANSWERS-- located in the
state it's doing
business
in
Foreign Insurance Co - CORRECT ANSWERS-- allowed to do business
in a state other
than
their
x
x
x
, AGENT
home
state
Alien Insurance Co - CORRECT ANSWERS-- authorized to conduct business in
any of the 50
states but who has its home office in another
country
Cerrtificate of Authority - CORRECT ANSWERS-- What an insurance
company needs
to have
in
order to operate in a
state
Fraternal Organization - CORRECT ANSWERS-- A non profit association and
only can
provid
e
insurance to its
members.
Reciprocal Organization - CORRECT ANSWERS-- A type of cooperative
insurance.
Eac
h
policyholder is insured by all other
policyholders.
Reinsurance - CORRECT ANSWERS-- Insurance between
insurers
- limits liability and prevents
catastrophic loss
An agent has 3 types of authority - CORRECT ANSWERS-- Expressed
authority - Implied Authority
- Apparent authority
Expressed Authority - CORRECT ANSWERS-- Written in a producer's contract
Implied Authority - CORRECT ANSWERS-- What the public assumes
the agent
possesse
s
Apparent Authority - CORRECT ANSWERS-- When a producer
oversteps actual
authori
ty
The law of contracts - 4 elements of a contract - CORRECT ANSWERS--
Agreement - Consideration - Legal Purpose
- Competent Parties
x
x
x
