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New York Life and Health Insurance, Questions with accurate answers. 100% verified.

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New York Life and Health Insurance, Questions with accurate answers. 100% verified. What is the difference between pure and speculative risk? - ✔✔Pure risk refers to situations that can only re... sult in a loss or no charge. There is no opportunity for financial gain. Pure risk is the only type of risk that insurance companies are willing to accept. What is the definition of a peril? - ✔✔A peril is the cause of a possible loss. What is adverse selection? - ✔✔the tendency of persons with a higher-than-average probability of loss to purchase and maintain more insurance than risks who present lower probability. Name 5 Methods of handling risks? - ✔✔The 5 methods of handling risk are avoidance, retention, sharing, reduction and transfer. What is considered in determining the amount of personal insurance using the human life value approach? - ✔✔The human life value approach gives the insured an estimate of what would be owed to the family in the event of the premature death of the insured. It calculates an individuals life value by looking at the insured's wages, inflation, the number of years to retirement, and the time value of money. Define Aleatory contract. - ✔✔An Aleatory contract is a contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is is unequal to the amount the insurer will pay in the event of a loss. Identify the difference between the domestic, foreign and alien insurers? - ✔✔A domestic insurer is an insurance company that is incorporated in the state. A foreign insurer is an insurance company that is incorporated in another state. An alien insurer is an insurance company that has incorporated outside of the United State. Who owns stock companies? - ✔✔Stock companies are companies that are owned by stockholders whose investment provide the capital necessary to establish and operate the insurance company. When an insurance agent acts with authority not expressed in writing it is called: - ✔✔Implied Authority When does an insurance agent provide the client with a conditional receipt? - ✔✔A conditional receipt gives an insurance company a window of time in which they can ultimately issue or refuse to approve the policy. If, during this time, the applicant for a life insurance contract dies, the company will pay a death benefit if the policy would have been issued. [Show More]

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