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licence coach
chap 1
| Question | Answer |
|---|---|
| The characteristics, privileges, duties of all parties, and rights of a policy | PROVISIONS |
| They are policy elements that “ride on” or add to the existing coverage by modifying provisions or coverage | RIDERS |
| They involve how policy funds are utilized | OPTIONS |
| The insurance practice of combining similar losses from many people so that the average loss over the entire group is relatively constant. | RISK POOLING |
| A medical condition, whether physical or mental, resulting from accident or sickness preventing a person from being able to work. | DISABILLITY |
| The rights and responsibilities of all parties of the contract. | CONDITIONS |
| The person who has all the ownership rights under the policy, pays premiums, and accepts the policy when delivered. | POLICY OLDER |
| The person who is covered under the policy. | INSURED |
| Set cost of insurance coverage, paid by the policyholder to the insurer. | PREMIUM |
| The entity that assumes the insured's risk. | INSURANCE COMPANY |
| In health insurance, the rate at which accident, sickness or disability will occur. | MORBIDITY |
| Method of handling risk which entails distributing risk over a large number of people so that all members of the group carry a portion of the risk. | SHARING |
| Mathematicians employed by insurers to collect and analyze risk data | ACTUARIES |
| It is designed to protect against the risk of premature death. | LIFE INSURANCE |
| The insured’s notification to the insurer that a payment is requested for a covered loss. | CLAIM |
| A legal agreement made between an insurer and an individual, in which the insurer collects a small amount of money, called a premium, from the insured in exchange for the insurer. | INSURANCE CONTRACT |
| In life insurance, the rate at which a specific population dies. | MORTALITY |
| A medical condition, disease or illness | SICKNESS |
| Broad term used to describe policies that cover loss of income due to accident or sickness and health care expenses | HEALTH INSURANCE |
| An economic phenomena,where in order to have a general idea of how manylosses will occur in agiven year,insurers use the law of large numbers,which states that as the group increases in size, it is easier to predict the number of future losses over a cert | LAW OF LARGE NUMBERS |
| The entity that assumes the insured’s risk. It is synonymous with insurance company. | INSURER |
| It is defined as the possibility of a loss occurring. | RISK |
| An individual’s valid concern for the continuation of the life or well-being of the person insured, which must be present at the time of application. | INSURABLE INTEREST |
| It is the unintentional decrease in value of an asset due to a peril. | LOSS |
| uncertainty of loss over a group of many individuals, and the law of large numbers? | INSURANCE |
| DEFINE INSURANCE | Insurance is defined as the transfer of risk. Uncertainty of loss is spread over a large number of people. |
| Which of the following is another term for “insurance company?” | INSURER |
| Risk pooling is best described by which the following? | Combining similar losses from many people so the average loss over the entire group remains relatively constant |
| Which of the following terms means risk is spread by sharing the possibility of loss over a large number of people? | RISK POOLING |
| Which of the following best describes spreading uncertainty of loss over a group of many individuals, and the law of large numbers? | INSURANCE |
| Which of the following correctly identifies the most important principle(s) of insurance? | risk pooling and the law of large numbers |
Created by:
Insurance101