Insurable interest Study guides, Class notes & Summaries

What is insurance? correct answer: Insurance transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. What is risk? correct answer: Risk is the uncertainty or chance of a loss occurring. What is peril? correct answer: Perils are the causes of loss insured against in an insurance policy. What are the elements of insurable risk? correct answer: Loss must be 1. due to chance 2....

Group Insurance - A method of providing life or health insurance coverage for a group of people under one insurance contract. commonly provide: - life insurance, medical expense insurance, disability insurance, and dental insurance coverage Master group insurance contract - An insurance contract that insures a number of people. Group insured - An individual covered by a group insurance policy. Group policyholder - The person or organization that decides what types of group insurance cover...

Under which situation must insurable interest exist between the applicant and insured at the time of application? - When a third-party applicant names themselves beneficiary. Which of the following is true about a decreasing term life policy? - The face amount reaches zero at policy expiration. Which of the following occurs immediately after the application is submitted and the initial premium paid? - The underwriting process begins For an individual long-term care policy there is an annua...

Insurance - Transfer of risk from one person or organization to an insurance company Indemnity - The principle to restore the insured to the pre-loss economic or financial condition. Law of Large numbers - Mathematical principle used by insurers to predict losses to charge the appropriate premiums Insurable Interest - Proof that someone stands to lose financially if a loss occurs; must exist at the time of the loss in property and casualty insurance Binder - Temporary insurance contr...

NYS Life, accident, and health insurance Exam Questions with verified Answers Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death? How many days notice does the ACA require insurers to give before rescinding coverage? A signed good health statement may be requested by a life producer at the time of Carol purchases a whole life policy that provides a choice of dividend options. This policy is req...

A policy written through the NFIP will provide coverage for: A Extra expenses B Increased costs to comply with local floodplain management laws C Loss of use D Loss of business income correct answers Increased costs to comply with local floodplain management laws Who is responsible for paying premiums, and will receive any premiums that have to be returned? A An additional insured B Any insured C Any named insured D First named insured correct answers First named insured Gene...

What is the term for how frequent a policyowner is required to pay the policy premium? correct answer: Mode Which of the following statements is true about a policy assignment? correct answer: It transfers rights of ownership from owner to another person During partial withdrawal from a university life policy, which portion will be taxed? correct answer: Interest Which of the following riders is often used in business life insurance policies when the policyowner needs to change the i...

Who is considered a field underwriter? - An agent When must insurable interest exist in life insurance? - Application or issue date If no receipt is issued at the time of application, a statement of good health is usually required at the time of? - Policy delivery The Medical Information Bureau is?(MIB) - a source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay? - a higher premium Which document describes specifi...

LA Life, Health & Accident Insurance Series 103 Practice Exam Questions and Answers Already Passed Under which situation must insurable interest exist between the applicant and insured at the time of application? When a third-party applicant names themselves beneficiary. Which of the following is true about a decreasing term life policy? The face amount reaches zero at policy expiration. Which of the following occurs immediately after the application is submitted and the initial premium paid?...

Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - Correct Answer -D. All listed interests Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one payment is made by the insurer and it is up to the additional in...