Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

life insurance > life insurance > Flashcards

life insurance Flashcards

1
Q

Which of the following is not an example of risk retention
1.Becoming aware of a risk and taking no action
2.self-insuring a given risk
3.Deciding a buisness deal is risky but going through with it anyways
4.Not doing a buisness deal after deciding it would be to risky

A

4.Not doing a buisness deal after deciding it would be to risky

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

An ____ agent may represent several insurers

A

Independent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following types of isurers limits the exposures it writes to those of its owners?

A

captive insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which of the following outlines the authority given to the producer on behalf of the insurer?

A

producer contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following can be defined as “the potential for loss”?

A

Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Dividends from a stock insurance company are normally sent to…

A

shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who regulates an insurers claim settlement practices?

A

state insurance departments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Risk ____ is the process of analyzing exposures that create risk and disigning programs to handle them.

A

management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

a reciprocal insurer typically has an administaratwho manages the premiums collected from the groups members. This administrator is called an ?

A

attorney - in fact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of the following is an unincorporated association whose members provide coverage for one another?

A

Reciprocal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

An agents authority to bend an insurer to an insurance contract may be granted in the….

A

Agent’s contract and the insurance company’s appointment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following types of risk is insurable?

A

pure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the accounting measurement of an insurance company’s future obligations to its policy owners?

A

Reserves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of the following financial products creates an instant estate, no matter when the date of death?

A

Life insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which of the following is not an objective of the national association of insurance commissioners?

A

Regulate state insurance commissioners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which of the following outlines the authority given to the producer on behalf of the insurer?

A

Producer contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A(n)_____ insurer assumes risk from another insurance company

A

Captive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as?

A

Facultative Reinsurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What type of risk involves the potential for loss with no possibility for gain?

A

Pure risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what group is the do not call registry designed to protect against?

A

Telemarketers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

A buisness becoming incorporated is an example of risk ____.

A

transfer

22
Q

an insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. what type of contractual arrangement is this?

A

Reinsurance contract

23
Q

Which of the following describes the act of insuring a risk against possible loss?

A

Risk transfer

24
Q

Which one of these is not considered to be an element of insurable risk ?

A

speculative risk

25
Q

Which of the following types of insurers limits the exposures it writes to those of its owners?
1.Restricted insurer
2.limited insurer
3.confined insurer
4.captive insurer

A

captive insurer

26
Q

Which reinsurance contract between two insurers involves an automatic sharing of the risk assumed?

A

Treaty Reinsurance

27
Q

Who regulates an insurer’s claim settlement practices?

A

State insurance departments

28
Q

Dividends from a stock insurance company are normally sent to…

A

shareholders

29
Q

The law of large numbers enable an insurer to…

A

Predict losses

30
Q

Dividends from a mutual insurance company are paid to whom?

A

policyholders

31
Q

ABC company is attempting to minimize the severity of potential losses within its company. the company is engaged in risk ____.

A

Reduction

32
Q

Which group is the do not call registry designed to protect against?

A

Telemarketers

33
Q

A condition that increases the possibility of financial loss is called a(n)

A

Hazard

34
Q

Which of the following is not an objective of the national association of insurance commissioners?
1.Encourage uniformity in state insurance laws
2.protect the interest of policyowners and consumers
3.Regulate state insurance commissioners
4.Promote efficiency in the administration of state insurance laws

A

Regulate state insurance commissioners

35
Q

A stock insurance company is owned by its

A

Shareholders

36
Q

Dividends from a stock insurance company are normally sent to

A

Shareholders

37
Q

Which one of these is not considered to be an element of an insurable risk?
1.speculative risk
2.pure risk
3.loss cannot be catastrophic
4.loss must be due to chance

A

Speculative risk

38
Q

For insurance purposes, similar objects which are exposed to the same group of perils are referred to as?

A

homogenous exposure units

39
Q

According to the law of large numbers, how would losses be affected if the number of similar insured units increases?

A

Predictability of losses will be improved

40
Q

Which of the following accurately describes a participating insurance policy?

1.policyowners may be entitled to receive dividends
2.policyowners pay assessments for company losses
3.stock companies allow their policyownersto share in any company earnings
4.policyowners are not entitled to vote for members of the board of directors

A

policyowners may be entitled to receive dividends

41
Q

A group- owned insurance company that is formed to assume and spread the liability risks of its members is known as a

A

risk retention group

42
Q

Who regulates an insurer’s claim settlement practices?

A

state insurance departments

43
Q

Which of the following types of insurers limits the exposures it writes to those of its owners?

A

captive insurer

44
Q

An insurable risk requires…

A

that the chance of lost be calculated

45
Q

An _____ insurer assumes risk from another insurance company .

A

Reinsurance

46
Q

an _____ agent is an insurance agent who represents only one insurance company

A

captive

47
Q

Insurance is not characterized as which of the following

1.Transference of risk
2.pooling of premium dollars
3.method of risk management
4.as the number of insureds increase the number of losses decrease

A

As the number of insureds increase the number of losses decrease

48
Q

Which of the following can be defined as “the potential for loss”?

A

Risk

49
Q

Which of the following types of risk is insurable?

A

Pure

50
Q

Insurable interest involves what assumption?

A

one person benefits from another persons continued life

life insurance (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions