FLORIDA 2-15 INSURANCE LICENSE TEST

FLORIDA 2-15 INSURANCE LICENSE TEST When a stock life insurance company issues both participating and nonparticipating policies, it is referred to as a company doing business as a: - Ans: -Mixed plan A peril is the cause of a risk. A hazard is the source of danger. - Ans: -Peril, hazard Stock insurers are owned by policyholders, whereas mutual insurer are owned by stockholders - Ans: -False Both stock and mutual companies can write life health and property and casual the insurance - Ans: -true In a reciprocal insure structure, each policyholder ensures the risk of the other policyholders - Ans: -True Risk retention groups are a form of mutual ensures - Ans: -True The true significance of insurance is replace the unknown with - Ans: -A sense of security Health insurance is based on scientific principles, whereas life insurance is based on actuarial or mathematical principles - Ans: -True The biggest ( ) is the basic principle of insurance that the larger the number of individual risk combined into a group the more certainty there is in predicting the degree of amount of loss that will be incurred in any given. Period. - Ans: -Law of large numbers Mortality concerns the number of deaths that occur at a specific time in a specific group or a form of specific cause. Morbidity concerns the presence of illness or disease - Ans: - Risk pulling is also known as law sharing - Ans: -True pure risk involves the possibility of loss only whereas speculative risk involves the possibility of loss and game - Ans: -True The systematic selection of loss exposure is prohibited due to the rules of adverse selection - Ans: -True A body disease of endangerment, such as cancer presents, a physical hazard and unhealthy habit such a smoking presence, a moral habit and a mental trait, such as road rage presents a morale hazard - Ans: -Hazard, Moral, morale