Accident and Health Insurance Exam with precise detailed answers

Accident and Health Insurance Exam with
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precise detailed answers
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Share, |Transfer, |Avoid, |Retain, |Reduce |- |correct |answer |5 |ways |of |managing |risk



Managing |General |Agent |- |correct |answer |A |person |who |exercises |general |supervision |over |the |
business |of |the |insurer, |which |includes |hiring |and |firing |agents



Concealment |- |correct |answer |Failure |to |disclose |a |material |fact



Surplus |Lines |- |correct |answer |Sold |by |unauthorized |companies, |such |as |Lloyd's |of |London



Representation |- |correct |answer |Truth |to |the |best |of |your |knowledge



Warranty |- |correct |answer |Guaranteed |to |be |true



Stock |insurance |companies |- |correct |answer |Pay |dividends |to |stockholders



Reciprocal |Insurance |company |- |correct |answer |Unincorporated |group |of |individuals |with |each |party |
insuring |other |members |(subscribers) |and |who |is |managed |by |attorney-in-fact



Risk |retention |groups |- |correct |answer |Established |by |and |for |its |members



Independent |agents |- |correct |answer |Own |their |own |accounts |and |are |not |insurance |company |
employees



Utmost |Good |Faith |- |correct |answer |Rely |on |the |honesty |of |each |other

,Adhesion |- |correct |answer |Insurer |must |adhere |to |its |ambiguity |in |favor |of |the |buyer



Moral |- |correct |answer |Dishonest |client



Speculative |Risk |- |correct |answer |Possibility |of |gain |or |loss |( |gambling |risk)



Law |of |Large |numbers |- |correct |answer |Predicts |claims |more |accurately



Pure |risk |- |correct |answer |Chance |of |loss |without |any |chance |of |gain



Aleatory |- |correct |answer |Unequal



Foreign |- |correct |answer |Another |state



Alien |- |correct |answer |Another |country



Domestic |- |correct |answer |Home |office |in |ohio



Surcharge |- |correct |answer |"Counteroffer" |original |offer |is |voided, |no |coverage |until |client |accepts |
the |policy |at |the |higher |rate |an |pays |the |increased |premium |and |signs



Mutual |insurance |company |- |correct |answer |"Policy |owners |/ |holders" |dividends |received |are |not |
taxable



Stock |company |- |correct |answer |Dividends |received |by |owner |are |taxable



Consideration |- |correct |answer |Both |answers |on |the |application |and |the |premium. |In |return, |
insurance |company |promises |to |coverage



Unilateral |- |correct |answer |Only |one |party, |makes |legally |enforceable |promise

, Peril |- |correct |answer |Cause |of |loss



Hazard |- |correct |answer |Increases |the |chance |of |a |loss



Director |of |Insurance |- |correct |answer |Insurance |company |must |be |authorized |to |do |business |in |Ohio
|by |the




Insurer |- |correct |answer |Agents |represent |the



Client |- |correct |answer |Brokers |represent |the



Agent |- |correct |answer |Solicitors |represent |the



Principle |- |correct |answer |The |insurer |is |the



Treaty |- |correct |answer |______ |reinsurance, |company |has |pre-negotiated |arrangement |with |a |re-
insurer



Faculative |- |correct |answer |______ |reinsurance |is |case-by-case |basis



Adverse |Selection |- |correct |answer |Occurrs |when |policy |owner |take |unfair |advantage |of |the |company



Insurance |- |correct |answer |Defined |as |the |transfer |of |PURE |risk |to |the |insurance |company |in |
consideration |of |a |premium



Fraternal |insurer |- |correct |answer |Covers |member |of |the |fraternal |association



Lloyd's |of |London |- |correct |answer |NOT |an |insurance |company