MN LIFE ACCIDENT & HEALTH PRODUCER EXAM | 158 QUESTIONS WITH CORRECT ANSWERS VERIFIED

Speculative Risk - involves the chance of loss or gain, and is not insurable Pure Risk - involves the chance of loss only, and is insurable Peril - Something that causes a direct loss Physical Hazard - Visible (Black ice) Moral Hazard - dishonest tendencies (Fraud) Morale Hazard - Carless, Irresponsible (leaving keys in car) Exposure - susceptibility to loss Adverse selection - those with high risk situations attempt to purchase insurance before those with average or below- avg. risk Insurance - The transfer of risk from one to many Pooling of Risk - A large reserve of money available to pay claims Law of Large numbers - the accuracy of the insurance companies loss projections will increase, need large numbers in order to predict accurate predictions Certificate of Insurance - - used after policy is issued