Primerica VA Study Guide Review
1. Agent/Producer: a legal representative of an insurance company; the classification of producer usually includes agents
and brokers; agents are the agents of the insurer
2. Applicant or purposed insured: A person applying for insurance
3. Broker: An insurance producer not appointed by and insurer and is deemed to represent a client
4. Insurance policy: A contract between a policyowner (and/or insured) and insurance company which agrees to pay e
insured or the beneficiary for loss caused by specific events
5. Insured: The person covered by the insurance policy. This person may or may not be the policyowner
6. Insurer(principal): The company who issues an insurance policy
7. Policyowner: The person entitled to exercise the rights and privileges in the policy
8. Premium: The money paid to the insurance company for the insurance policy
9. Reciprocity/Reciprocal: A mutual interchange of right and privileges
10. Insurance is the of risk. Insureds' losses are transferred
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, over to the insurer: Transfer
11. Risk: Uncertainty or chance of a loss occurring
12. Pure risk: Refers to situations that can only result in loss or no change
13. Speculative risk: Involves the opportunity for either loss or gain
14. Only risks are insurable: Pure
15. Exposure: Unit of measure used to determine rates charged for insurance coverage
16. Homogeneous: A large number of units having the same or similar exposure to loss
17. Hazard: Condition or situations that increase the probability of an insured loss occurring
18. Physical hazard: Individual characteristics that increase the chances of the cause of loss
19. Moral hazard: Tendencies towards increased risk
20. Morale hazard: Similar to moral hazards, except that they arise from a state of mind that causes inditter-ence to
loss, suck as carelessness
21. Perils: Causes of loss insured against in an insurance policy
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1. Agent/Producer: a legal representative of an insurance company; the classification of producer usually includes agents
and brokers; agents are the agents of the insurer
2. Applicant or purposed insured: A person applying for insurance
3. Broker: An insurance producer not appointed by and insurer and is deemed to represent a client
4. Insurance policy: A contract between a policyowner (and/or insured) and insurance company which agrees to pay e
insured or the beneficiary for loss caused by specific events
5. Insured: The person covered by the insurance policy. This person may or may not be the policyowner
6. Insurer(principal): The company who issues an insurance policy
7. Policyowner: The person entitled to exercise the rights and privileges in the policy
8. Premium: The money paid to the insurance company for the insurance policy
9. Reciprocity/Reciprocal: A mutual interchange of right and privileges
10. Insurance is the of risk. Insureds' losses are transferred
1/
5
, over to the insurer: Transfer
11. Risk: Uncertainty or chance of a loss occurring
12. Pure risk: Refers to situations that can only result in loss or no change
13. Speculative risk: Involves the opportunity for either loss or gain
14. Only risks are insurable: Pure
15. Exposure: Unit of measure used to determine rates charged for insurance coverage
16. Homogeneous: A large number of units having the same or similar exposure to loss
17. Hazard: Condition or situations that increase the probability of an insured loss occurring
18. Physical hazard: Individual characteristics that increase the chances of the cause of loss
19. Moral hazard: Tendencies towards increased risk
20. Morale hazard: Similar to moral hazards, except that they arise from a state of mind that causes inditter-ence to
loss, suck as carelessness
21. Perils: Causes of loss insured against in an insurance policy
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