Business > EXAM > OR Life and Health Insurance: Flash Cards from Exam FX. Chapter: General Insurance; Completing the A (All)

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OR Life and Health Insurance: Flash Cards from Exam FX. Chapter: General Insurance; Completing the Application, Underwriting, and Delivering the Policy | 50 Questions with 100% Correct Answers

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Insurers are classified to their domiciles. What are the three types of insurers? Correct Answer: 1) Domestic 2) Foreign 3) Alien An insurance policy paid a nontaxable dividend to the insure... d one year, and nothing the next. From what type of insurer did the insured purchase the policy? Correct Answer: Mutual Insurance is used to transfer what to the insurance company? Correct Answer: Financial responsibility for loss. What do individuals use to transfer their risk of loss to a larger group? Correct Answer: Insurance What document is required for an insurance company to transport insurance? Correct Answer: Certificate of Authority For the purpose of insurance, what is risk? Correct Answer: Uncertainty of loss What are the five characteristics of an ideally insurable risk? Correct Answer: Loss must be due to: 1) Due to chance 2) Definite and measurable 3) Statistically predictable 4) Not catastrophic 5) Coverage cannot be mandatory What is the name of the process that insurance companies use to determine whether or not an applicant is insurable? Correct Answer: Underwriting What type of insurer is formed under the laws of another country? Correct Answer: Alien What law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated? Correct Answer: Law of Large Numbers Whom does an insurance agent represent? Correct Answer: The insurance company The insurer organized to return a profit to the stockholders is what type of insurer? Correct Answer: Stock company [Show More]

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