Accident and Health Insurance Agent Practice Exam latest update 2024 complete solutions.

Group Insurance - Answer- - the employer is the owner and receives the master contract - the employees are certificate holders which outlines the details of it - underwriting is much more liberal because its a large group and probably wont have adverse selection - if you want to get in at another time, employee has to show insurability What do you need to get Social Secutiry - Answer- - You have to work for 40 qtrs or 10 years Insurance Definition - Answer- - Transfer of risk from 1 party to another - To provide funds for medical expenses due to sickness or injury and to cover loss of income during a disability Indemnity - Answer- - To restore or make whole again - To bring back to the same condition they had prior to loss Risk - Answer- - the uncertainty or chance of loss Mortality - Answer- - The number of deaths - helps determing premium Morbidity - Answer- -The number of disabled due to accident or sickness Pure Risk - Answer- - Chance of loss without any chance of gain - only pure risk is insurable Speculative Risk - Answer- - Chance of loss or gain What kind of Risks are insurable - Answer- - loss must be accidental - loss must be definite (or measurable) - must not be catastrophic - must be great enough to create economic hardship - premiums must be reasonable Retention - Answer- -The personal acceptance of the loss Peril - Answer- - The cause or source of a loss