Oklahoma Insurance Exam Questions and Answers 100% Correct(SCORED A+)

Life Insurance - ANSWER-Transfers to a life insurance company the risk of financial loss to an insurance company. Health Insurance - ANSWER-transfers to a health insurance policy the risk of financial loss resulting from illness, injury, disability of an insured person. Risk - ANSWER-Chance of loss: only pure risk is insurable. Loss - ANSWER-Unplanned reduction in economic value. hazard - ANSWER-a condition that increases the chance of a peril/setback/danger. Risk Transfer - ANSWER-Risk management role played by insurance. Underwriting - ANSWER-Assessing an applicant to determine insurability. Law of Large Numbers - ANSWER-Mathematical principle of probability underlying insurance. Mutual Companies - ANSWER-owned by policy owners participating policies which pay policy dividends to their policy owners may sell life/health insurance Stock Companies