LIFE AND HEALTH INSURANCE Study guides, Class notes & Summaries

Life & Health Insurance Exam With Complete Solutions Graded A+ Insurance - Is a contract that transfers the risk of financial loss from an individual or business to an insurer. In return, the insurer agrees to cover the individual or business for certain losses if they occur. - state run Peril What more so directly caused the loss, for example: fire, wind, theft, and water. Hazard Something that can increase the chance of a loss occurring. There remains three types of hazards: m...

Life & Health Insurance Exam With Complete Solutions Graded A+ Concept of insurance The transfer of risk from one party to another through a legal contract. Law of Large Numbers The larger the number of risks insured in the same risk pool; the more predictable losses become. Peril An immediate, specific event that causes a loss. Loss An unintended, unforeseen reduction, or destruction of financial or economic value. Hazard Creates an increased possibility that a peril (...

Life & Health Insurance Exam With Complete Solutions Graded A+ What year was the McCarren-Ferguson Act enacted? 1945 Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated? 1070 Fair Credit Reporting Act A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: fraternal benefit society What type of reinsurance contract involves two companie...

Life & Health Insurance Exam With Complete Solutions Graded A+ Actuarial Department calculates policy rates, reserves, and dividends Alien Insurer is an insurer whose principal office and domiciled location is outside US Admitted Insurer an admitted or authorized insurer is an insurer who has received a certification of authority from a state's department of insurance authorizing them to conduct insurance business in that state broker a broker represents themselves and the i...

Life & Health Insurance Exam With Complete Solutions Graded A+ Concealment The intentional failure to disclose known facts on an insurance application is called $94,800 Betty owns a universal life insurance policy that was issued with a $100,000 face amount and now has total death benefit protection of $110,000. Several months ago she borrowed $15,000 from the policy. The outstanding loan balance (Including Interest) is $15,200. If Betty dies today, what will be the amount of the death b...

Life and Health Insurance Review Exam|Latest Update Graded A+ #3. An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? a) Adjust the claim benefit to reflect the insured's true age b) Deny any claims and cancel the policy c) Deny paying a claim based on misrepresentati...

Texas Life and Health Insurance Exam Questions And Answers Graded A+ At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Upon completion of the application Who elects the governing body of a mutual insurance company? policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Fair Credit Reporting Act What type of reinsurance contract i...

USAA P&C Insurance Adjuster Exam Questions With Verified Solutions Perils Causes of loss identified in the policy (Fire, lightening, internal explosion ,Wind, Hail, Collision) Hazard Condition that create or increases the chance or loss or contributes to the loss Physical Hazard Visible ( operational features of a risk) Moral Hazard Intentional dishonesty or illegal actions of a person (arson) Morale Hazard Carelessness or indifference ( attitude). Takes additional risk...

LIFE AND HEALTH INSURANCE PRACTICE TEST EXAM COLORADO 2023