NE State insurance exam | 78 questions and answers 2023/24

NE State insurance exam | 78 questions and answers 2023/24 All of the following influence the premiums charged for life insurance policies, Except? A. Mortality B. Agent Commissions C. Investment Return D. Insurance comissioner - Insurance Commissioner Spreads the risk of loss from one person to a large number of people through the pooling of collected premiums? - Insurance Insurance aids in reducing uncertainty with regard to possible financial losses. What definition best identifies the uncertainty concerning loss or chance of loss? - Risk What best defines the concept known as life insurance? - The immediate creation of funds An insurance contract is an agreement between two parties. What are the parties involved in a life insurance contract? - Insurer and policy owner Several financial burdens exist upon the death of an individual. Each of the following is a cost associated with death, EXCEPT: A. Burial Expenses B. Estate Taxes C. Indemnification Expenses D. Debt Obligations - Indemnification expenses In order for one person to purchase life insurance in the life of another a valid insurable interest must be present. When must insurable interest exist in a life insurance? - At the time of the application What will help to reduce or avoid adverse selection? - Sound underwriting What approach is used to determine the appropriate amount of life insurance involved in an individual's future earning capacity? - Human life value approach A net single premium primarily looks at what? - Death benefit An insurer that is chartered in the state of New Jersey and is authorized in Connecticut is referred to in the latter state as what? - Foreign insurer An authorized company whose principal office is located in this State operates in this State as? - Domestic company A