Nebraska State Life and Health
Insurance Exam Terms
Adverse Selection - Correct Answer ✅Insuring of risks more
prone to loss than the average
Agent/Producer - Correct Answer ✅legal representative of
an insurance company
Applicant/Proposed insured - Correct Answer ✅a person
applying for insurance
Hazard - Correct Answer ✅Conditions that increase the
probability of a loss
Moral - Correct Answer ✅tendency toward increased risk
(driving fast)
Morale - Correct Answer ✅indifference towards risk (not
locking the door)
Indemnity - Correct Answer ✅restoring the insured to the
condition that existed before loss
,Nebraska State Life and Health
Insurance Exam Terms
Insurance - Correct Answer ✅Transfer of risk of loss from
an individual to na insurer
Insurance Transaction - Correct Answer ✅solicitation,
negotiations or effectuation of a contract
Insured - Correct Answer ✅Person covered by the
insurance policy
Insurer - Correct Answer ✅a company that issues an
insurance policy
Law of Large Numbers - Correct Answer ✅the larger the
number of people with the same exposure to loss the more
predictable the loss will be
Peril - Correct Answer ✅the cause of loss
,Nebraska State Life and Health
Insurance Exam Terms
Policyowner - Correct Answer ✅person who has the rights
and privileges in he policy
Risk - Correct Answer ✅uncertainty or chance of loss
Ownership - Correct Answer ✅Stock (nonparticipating)
Mutual (participating/dividends)
Domicile - Correct Answer ✅Domestic (this state) Foreign
(another state) Alien (another nation)
Required Elements of Contract - Correct Answer
✅Agreement, Consideration, Competent Parties, Legal
Purpose
Personal Contract - Correct Answer ✅Between an insurer
and an individual
Aleatory Contract - Correct Answer ✅Exchange of unequal
values
, Nebraska State Life and Health
Insurance Exam Terms
Unilateral Contract - Correct Answer ✅Only one party is
legally bound by the contract
Adhesion Contract - Correct Answer ✅Contracts are
accepted by the applicants as is
Conditional Contract - Correct Answer ✅Both parties must
meet certain conditions
Misrepresentation - Correct Answer ✅An untrue statement
on the insurance application
Warranty - Correct Answer ✅An absolutely true statement
Concealment - Correct Answer ✅Intentional withholding of
material information
Fraud - Correct Answer ✅Intentional act with the purpose
of deceiving another party
Insurance Exam Terms
Adverse Selection - Correct Answer ✅Insuring of risks more
prone to loss than the average
Agent/Producer - Correct Answer ✅legal representative of
an insurance company
Applicant/Proposed insured - Correct Answer ✅a person
applying for insurance
Hazard - Correct Answer ✅Conditions that increase the
probability of a loss
Moral - Correct Answer ✅tendency toward increased risk
(driving fast)
Morale - Correct Answer ✅indifference towards risk (not
locking the door)
Indemnity - Correct Answer ✅restoring the insured to the
condition that existed before loss
,Nebraska State Life and Health
Insurance Exam Terms
Insurance - Correct Answer ✅Transfer of risk of loss from
an individual to na insurer
Insurance Transaction - Correct Answer ✅solicitation,
negotiations or effectuation of a contract
Insured - Correct Answer ✅Person covered by the
insurance policy
Insurer - Correct Answer ✅a company that issues an
insurance policy
Law of Large Numbers - Correct Answer ✅the larger the
number of people with the same exposure to loss the more
predictable the loss will be
Peril - Correct Answer ✅the cause of loss
,Nebraska State Life and Health
Insurance Exam Terms
Policyowner - Correct Answer ✅person who has the rights
and privileges in he policy
Risk - Correct Answer ✅uncertainty or chance of loss
Ownership - Correct Answer ✅Stock (nonparticipating)
Mutual (participating/dividends)
Domicile - Correct Answer ✅Domestic (this state) Foreign
(another state) Alien (another nation)
Required Elements of Contract - Correct Answer
✅Agreement, Consideration, Competent Parties, Legal
Purpose
Personal Contract - Correct Answer ✅Between an insurer
and an individual
Aleatory Contract - Correct Answer ✅Exchange of unequal
values
, Nebraska State Life and Health
Insurance Exam Terms
Unilateral Contract - Correct Answer ✅Only one party is
legally bound by the contract
Adhesion Contract - Correct Answer ✅Contracts are
accepted by the applicants as is
Conditional Contract - Correct Answer ✅Both parties must
meet certain conditions
Misrepresentation - Correct Answer ✅An untrue statement
on the insurance application
Warranty - Correct Answer ✅An absolutely true statement
Concealment - Correct Answer ✅Intentional withholding of
material information
Fraud - Correct Answer ✅Intentional act with the purpose
of deceiving another party
