Life and Health Insurance Exam Webce|A+ Graded
Risk
Chance of loss
Loss
Unplanned reduction of economic value
Peril
cause of loss
Hazard
a condition that increases the chance of peril
Risk Transfer
buying insurance to shift the risk to insurance company
Underwriting
assessing applicant to determine insurability
Adverse Selection
people with greater risk of loss trying to buy insurance
Mutual Companies
owned by policyholders and issue participating polices dividends which aren't guaranteed or taxable
Stock Companies
Owned by stockholders whose stock can be publicly traded and pay dividends that are taxable
Federal Insurance Programs
Medicare and Social Security
State Insurance Programs
Medicaid and Workers' comp
Producers Authority
Expressed
Implied
Apparent
Required Disclosures
Buyer's guide and policy summary
Offer
, signed application and initial premium
Acceptance
issuing of policy as applied for by insurer
Contract of Adhesion
ambiguities in the contract that are interpreted to the benefit of the policyowner
Representations
applicants truthful statements on application
Ways to manage risk
Transfer
Avoid
Retain
Reduce
Share with others
Speculative Risk
result in loss or gain, noninsurable
Moral Hazard
character weakness like habits or lifestyle
Morale Hazard
State of mind or carless attitude
Physical Hazard
physical condition that increases ones less like heavy drinking or smoking
Managed Care Service Providers
blend of commercial and medical insurance like blue cross blue shield
Fraternal benefit society
An organization formed to provide insurance benefits for affiliated members
Self Insurer
large companies that can cover losses, must follow laws and pay for itself
Risk Retention groups
Self-run insurance programs set up by insurance companies to do own admin tasks
Surplus Line insurers
property and causality market for insurance not covered by state
Risk
Chance of loss
Loss
Unplanned reduction of economic value
Peril
cause of loss
Hazard
a condition that increases the chance of peril
Risk Transfer
buying insurance to shift the risk to insurance company
Underwriting
assessing applicant to determine insurability
Adverse Selection
people with greater risk of loss trying to buy insurance
Mutual Companies
owned by policyholders and issue participating polices dividends which aren't guaranteed or taxable
Stock Companies
Owned by stockholders whose stock can be publicly traded and pay dividends that are taxable
Federal Insurance Programs
Medicare and Social Security
State Insurance Programs
Medicaid and Workers' comp
Producers Authority
Expressed
Implied
Apparent
Required Disclosures
Buyer's guide and policy summary
Offer
, signed application and initial premium
Acceptance
issuing of policy as applied for by insurer
Contract of Adhesion
ambiguities in the contract that are interpreted to the benefit of the policyowner
Representations
applicants truthful statements on application
Ways to manage risk
Transfer
Avoid
Retain
Reduce
Share with others
Speculative Risk
result in loss or gain, noninsurable
Moral Hazard
character weakness like habits or lifestyle
Morale Hazard
State of mind or carless attitude
Physical Hazard
physical condition that increases ones less like heavy drinking or smoking
Managed Care Service Providers
blend of commercial and medical insurance like blue cross blue shield
Fraternal benefit society
An organization formed to provide insurance benefits for affiliated members
Self Insurer
large companies that can cover losses, must follow laws and pay for itself
Risk Retention groups
Self-run insurance programs set up by insurance companies to do own admin tasks
Surplus Line insurers
property and causality market for insurance not covered by state
