Life, Health & Variable Annuity (2-15 Exam) Study Guide with Best Solutions Verified and Graded A+

Life, Health & Variable Annuity (2-15 Exam) Study Guide with Best Solutions Verified and Graded A+ Law of Averages - Correct Answer Insurance concept founded on the ability to predict the approximate number of deaths or frequency of disabilities within a certain group during a specific time. Moral Hazard - Correct Answer An owner is worried that employees will help themselves to products on the shelf without paying for them. This is an example of what type of hazard? Risk Avoidance - Correct Answer Won't fly an airplane, never drives a car and keeps money out of the stock market is known as what type of risk ? TRUE - Correct Answer Only pure risk is insurable. TRUE or FALSE? Does not - Correct Answer The loss must not be due to chance. This does or does not describe an element of insurable risk? Risk - Correct Answer Uncertainty regarding financial loss best describes this term? Transferring Risk - Correct Answer Buying insurance is one of the most effective ways of... The function of Insurance - Correct Answer Spreads financial risk over a large group to minimize the loss to any one individual. Peril - Correct Answer A Tornado is an example of a what type of hazard? Risk Reduction - Correct Answer Tom buys his wife a $50,000 diamond ring. When she is not wearing it he locks it up in his safe. This is an example of what type of risk? Is not - Correct Answer Assessing the prospect's financial ability to pay commissions is or is not a standard of a producer's sales pitch? Domestic - Correct Answer An insurance company organized and headquartered in Florida is what type of company? FALSE - Correct Answer Reinsurers usually deal with group policy owners. TRUE OR FALSE? FALSE - Correct Answer The Federal Trade Commission (FTC) directly supervises all insurance marketing activities. TRUE OR FALSE? FALSE - Correct Answer The National Association of Insurance Commissioners (NAIC) is empowered to prosecute and punish criminal violators in the insurance industry.