DELAWARE LIFE INSURANCE EXAM 2025 WITH ACCURATE SOLUTIONS
Speculative Risk - CORRECT -A chance of loss, no
loss, or gain.
a risk that presents the chance of loss but no opportunity for gain
- CORRECT -Pure Risk
risk sharing - CORRECT -Allocating ownership of a
risk to another party
Risk Transfer - CORRECT -A pure risk is transferred
from the insured to the insurer, who typically is in a stronger
financial position
insurable risk - CORRECT -a pure risk that is faced
by a large number of people and for which the amount of the
loss can be predicted
Morbidity - CORRECT -Refers to ill health in an
individual and the levels of ill health in a population or group.
,Those who are at risk the most to buy insurance -
CORRECT -adverse selection
Law of Large Numbers - CORRECT -Based on the
idea that predictions become more accurate as the number of
measurable exposures increase, the law of large numbers is a
mathematical principle of probability that underlies insurance
premium rate calculations.
____ sold by home service insurance companies, is sold in small
face amounts, usually less than $10,000 (and frequently between
$1,000 and $2,500). - CORRECT -Industrial life
insurance
____ Are not taxable - CORRECT -Policy divdeneds
____ are owned by their policyowners - CORRECT -
Mutual insurance companies
Surplus Lines Insurance - CORRECT -An insurance
co that is authorized to sell unauthorized insurance. You can
,only go to a surplus lines co if you cant get it from a regular
insurance company
Reinsurance - CORRECT -an arrangement by which
the primary insurer that initially writes the insurance transfers to
another insurer part or all of the potential losses associated with
such insurance
Domestic Insurer - CORRECT -An insurance
company that conducts business in the state of incorporation.
Alien insurer - CORRECT -An insurance company
that is incorporated outside the United States.
foreign insurer - CORRECT -An insurance company
that is incorporated in another state.
What are the federal insurance programs? -
CORRECT -Medicaid and Social Securities
, Express Authority - CORRECT -the authority of an
agent, stated in the document or agreement creating the
agency(agent and insurer)
Implied Authority - CORRECT -insurers allow their
producers to engage in many sales-related activities not
expressly listed in any agreement but that are recognized as
essential to the job
Apparent Authority - CORRECT -Authority that:
1. the contract does not provide
2. the insurer does not intend
3. reasonably appears to the customer to be granted by the
insurer based on the producer's statements and the actions (or
inactions) of the insurer
Rebating - CORRECT -the practice of giving an
individual a premium reduction or some other financial
advantage not stated in the policy as an inducement to purchase
the policy
Speculative Risk - CORRECT -A chance of loss, no
loss, or gain.
a risk that presents the chance of loss but no opportunity for gain
- CORRECT -Pure Risk
risk sharing - CORRECT -Allocating ownership of a
risk to another party
Risk Transfer - CORRECT -A pure risk is transferred
from the insured to the insurer, who typically is in a stronger
financial position
insurable risk - CORRECT -a pure risk that is faced
by a large number of people and for which the amount of the
loss can be predicted
Morbidity - CORRECT -Refers to ill health in an
individual and the levels of ill health in a population or group.
,Those who are at risk the most to buy insurance -
CORRECT -adverse selection
Law of Large Numbers - CORRECT -Based on the
idea that predictions become more accurate as the number of
measurable exposures increase, the law of large numbers is a
mathematical principle of probability that underlies insurance
premium rate calculations.
____ sold by home service insurance companies, is sold in small
face amounts, usually less than $10,000 (and frequently between
$1,000 and $2,500). - CORRECT -Industrial life
insurance
____ Are not taxable - CORRECT -Policy divdeneds
____ are owned by their policyowners - CORRECT -
Mutual insurance companies
Surplus Lines Insurance - CORRECT -An insurance
co that is authorized to sell unauthorized insurance. You can
,only go to a surplus lines co if you cant get it from a regular
insurance company
Reinsurance - CORRECT -an arrangement by which
the primary insurer that initially writes the insurance transfers to
another insurer part or all of the potential losses associated with
such insurance
Domestic Insurer - CORRECT -An insurance
company that conducts business in the state of incorporation.
Alien insurer - CORRECT -An insurance company
that is incorporated outside the United States.
foreign insurer - CORRECT -An insurance company
that is incorporated in another state.
What are the federal insurance programs? -
CORRECT -Medicaid and Social Securities
, Express Authority - CORRECT -the authority of an
agent, stated in the document or agreement creating the
agency(agent and insurer)
Implied Authority - CORRECT -insurers allow their
producers to engage in many sales-related activities not
expressly listed in any agreement but that are recognized as
essential to the job
Apparent Authority - CORRECT -Authority that:
1. the contract does not provide
2. the insurer does not intend
3. reasonably appears to the customer to be granted by the
insurer based on the producer's statements and the actions (or
inactions) of the insurer
Rebating - CORRECT -the practice of giving an
individual a premium reduction or some other financial
advantage not stated in the policy as an inducement to purchase
the policy
