Risk Management and Insurance > QUESTIONS & ANSWERS > NC Health Insurance Exam Pearson Vue Latest 2023 Graded A+ (All)
NC Health Insurance Exam Pearson Vue Latest 2023 Graded A+ Pure Risk ✔✔chance of loss or no loss but not gain insurable Speculative Risk ✔✔there is possibility of loss but of gain no ... insurablility exposure unit ✔✔subject to loss peril ✔✔cause of loss life insurance ✔✔death Health insurance ✔✔accident and sickness hazard ✔✔increases the likelihood or severity of loss Three types of hazard ✔✔physical, moral, morale physical hazard ✔✔arise from the inherent characteristic of the exposure unit Moral Hazard ✔✔lifestyle of the insured person Morale hazard ✔✔arise more from an outlook on life risk avoidance ✔✔eliminating all risk altogether risk retention ✔✔manage risk Deduction self-insurance ✔✔instead of buying health insurance and saving $ in the bank Pure risk that are not insurable ✔✔Flood, War, Catastrophic losses Intentional losses ✔✔not insurable Adverse selection ✔✔bad for insurance insurance actuary ✔✔a specially trained mathematician who calculates premiums underwriter ✔✔checks out the medical history of the proposed insured and other factors to eliminate adverse selection against the insurance company, issue policy premium restrictions Days for applicant to requests an explanantion ✔✔90 days Days insurance company must furnish an explanation ✔✔21 days A dispute must begin within in ✔✔30 days Law of Large numbers ✔✔the larger the number the easier it is to predict losses how much $ must a insurance company have in reserve at all times ✔✔4 million Reinsurance agreements ✔✔enable an insurance company the ceding company to transfer risk to the reinsurer (seller) Capital Stock companies are owned by ✔✔stock holders and most common Main purpose of the stock company ✔✔make a profit for its investors Mutual companies are owned by ✔✔policy holders Assessment insurers ✔✔charge additional premiums at the end of the specified time period Fraternal benefit societies are similar to ✔✔mutual companies who is only eligible to buy insurance policies from a Fraternal? ✔✔its members Fraternal agents can only sell which policies ✔✔life, health and annuity policies self insurers ✔✔only insure themselves Reciprocal exchanges ✔✔all its members to to insure each other who manages a reciprocal? ✔✔attorney-in-fact who often steps in to cover risks too large or too catastrophic for private insurers? ✔✔government insurers Social Security ✔✔a federal program funded by employers, employees and the selfemployed What agency does not fund social security? ✔✔FEderal Government Insurers must be in a state to sell insurance ✔✔Authorized What does Insurer get to sell in the insurance in a certain state? ✔✔Certificate of Authority What are insurers classified as in their own state? ✔✔Domestic What are insurers classified as in another state? ✔✔Foreign What are insurers classified as in another country? ✔✔Alien What is a legal contract? ✔✔Insurance policy What is the role of the agent? ✔✔bring contract parties together An agent is not a __________ to the contract ✔✔party An agent is an___________ to the contract ✔✔intermediary Contract parties are known as ✔✔principals what are the only two principals in an insurance contract ✔✔insurer and owner What are two ways agents are classified? ✔✔captive or independent how many companies does a captive agent represent? ✔✔One and all his commissions and renewals are usually retained by the insurer how many companies does a independent agent represent? ✔✔one or more and does not loose his commissions or renewals What does a general agent do? ✔✔hire, train and supervise agents of a company within a specified area What are three categories of agent authority? ✔✔Express,implied, and apparent who represents the buyer of insurance? ✔✔brokers who does an agent represent? ✔✔Insurance company [Show More]
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