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Health > 1 - Basics > Flashcards

1 - Basics Flashcards

1
Q

Factors needed to be an insurable risk?

A
  • large # of similar exposures
  • significant in scope
  • measurable
  • accidental
  • non-catastrophic
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2
Q

Domestic Insurer

A

-within the state

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3
Q

Foreign Insurer

A

-outside of the state

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4
Q

Alien Insurer

A

-outside of the country

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5
Q

Stock Insurance Company

A
  • “Capital Stock”
  • stockholders
  • stock dividends
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6
Q

Mutual Insurance Company

A
  • policyholders

- policies at lowest cost

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7
Q

Reciprocal Insurance Exchange

A

-policyholders insure the risks of other policyholders

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8
Q

Reinsurers

A

-risks are accepted by 1 or more insurance company

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9
Q

Automatic Reinsurance

A
  • “Treaty”

- contractually bound to cede a % of the risk

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10
Q

Facultative Reinsurance

A

-negotiated separately for each insurance contract

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11
Q

Lloyd’s of London

A
  • insurance underwriters

- unusual and even speculative risks

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12
Q

Self-Insurers

A

-entirely financed by policyholder

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13
Q

3 types of insurance systems

A
  • General Agency
  • Branch Office
  • Direct Response Marketing
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14
Q

Express Authority

A

-authority to act on behalf of a insurer

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15
Q

Implied Authority

A

-authority not expressed in contract, but is endorsed to carry on business

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16
Q

Apparent Authority

A

-appears to have authority to represent an insurer

17
Q

Requirements to be a Legal Contract

A
  • must be competent as to age and mental capacity (15 for NC Life)
  • must be for legal purposes and no illegal elements
  • must be an offer and acceptance
  • must be consideration
18
Q

Estoppel

A

-legal impediment to one party denying the consequences of its own actions

19
Q

NAIC

A

-National Association of Insurance Commissioners

20
Q

Parts of the Policy

A
  • Declarations Page
  • Insuring Agreement
  • Conditions
  • Exclusions
  • Definitions
21
Q

3 types of Hazards

A
  • physical
  • moral
  • morale
22
Q

speculative risk

A
  • not insurable

- possibility of gain

23
Q

pure risk

A
  • insurable

- only a possibility of loss

24
Q

Risk Management Methods

A
  • Risk Avoidance
  • Risk Assumption
  • Risk Transference
  • Risk Sharing
  • Risk Reduction
25
Q

Risk Avoidance

A

-avoiding activities that could lead to loss

26
Q

Risk Assumption

A

-retaining the entire risk and paying any expenses incurred from it

27
Q

Risk Transference

A

-transfer of the risk to an insurance company

28
Q

Risk Sharing

A

-assuming part of the risk and transferring part of the risk

29
Q

Risk Reduction

A

-taking action to lower the possibility of loss

Health (6 decks)

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