MI LIFE PRODUCER FINAL EXAM AND PRACTICE
QUESTIONS EXAM ACTUAL EXAM COMPLETE
ACCURATE EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
indemnify - ANSWER: to restore the insured to the same condition as prior to loss
with no intent of loss or gain
insurance - ANSWER: a contract whereby one party (insurer) agrees to indemnify or
guarantee another party (insured) against a loss by a specified future contingency or
peril in return for payment of a premium.
risk - ANSWER: uncertainty as to the outcome of an event when two or more
possibilities exist
peril - ANSWER: the cause of a possible loss
non-participating (known as stock) - ANSWER: policy does not pay dividends to policy
owners: taxable dividends are paid to stockholder
authorized (admitted) insurer - ANSWER: an insurance company authorized and
licensed to transact business in a particular state.
unauthorized (nonadmitted) insurer - ANSWER: an insurance company or insurer not
licensed to transact business
(also known as Excess and Surplus insurance) or (E&S) or (surplus lines)
life insurance - ANSWER: a contract between an insurer and policyholder specifying a
sum to be paid to a beneficiary upon the insured's death
transfers - ANSWER: a basic principal of an insurance under which the risk of
financial loss is assigned to another party
pure risk - ANSWER: refers to situations that can only result in a loss or no change
speculative risk - ANSWER: opportunity for either loss or gain
hazzard - ANSWER: circumstance that increases the likelihood of a loss
hazzard, moral - ANSWER: the effect of a persons reputation, character, living habits,
ect. on his/her insurability
, hazzard, morale - ANSWER: the effect a persons indifference concerning loss has on
the risk to be insured
hazzard, physical - ANSWER: arises from the physical characteristics from an
individual such as: physical disability due to current circumstance or condition
present at birth
law of agency - ANSWER: the relationship between the principal and the
agent/producer
health insurance - ANSWER: insures against the medical expenses and/or loss of
income caused by the insured's sickness or accidental injury
property insurance - ANSWER: insures against the loss of physical property or the
loss of its income-producing abilities
casualty insurance - ANSWER: insures against the loss and/or damage of property
and resulting liabilities
express - ANSWER: authority a principal intends to grant in contract
apparent - ANSWER: assumption of authority based on actions, words, or deeds
because of circumstances
retention (known as self insurance) - ANSWER: method of dealing with risk by
intentionally or unintentionally keeping a portion of it for the insureds account: the
amount if responsibility assumed but not reinsured by the insurance company
purpose of retention - ANSWER: 1. to reduce expenses and improve cash flow
2. to increase control of claim reserving and claims settlements
3. to fund for losses that cannot be insured
sharing - ANSWER: a method of dealing with risk for a group of individual persons or
businesses with the same or similar exposure to loss who share the losses that occur
within that group.
loss - ANSWER: the reduction, decrease, or disappearance of value of the person or
property insured in a policy by a peril insured against
avoidance - ANSWER: a method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash,
he/she might choose never to fly in a plane).
reduction - ANSWER: lessening the possibility or severity of a loss.
elements of insurable risk - ANSWER: due to chance, definite and measurable,
statistically predictable, not catastrophic, randomly selected and large loss exposure
QUESTIONS EXAM ACTUAL EXAM COMPLETE
ACCURATE EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
indemnify - ANSWER: to restore the insured to the same condition as prior to loss
with no intent of loss or gain
insurance - ANSWER: a contract whereby one party (insurer) agrees to indemnify or
guarantee another party (insured) against a loss by a specified future contingency or
peril in return for payment of a premium.
risk - ANSWER: uncertainty as to the outcome of an event when two or more
possibilities exist
peril - ANSWER: the cause of a possible loss
non-participating (known as stock) - ANSWER: policy does not pay dividends to policy
owners: taxable dividends are paid to stockholder
authorized (admitted) insurer - ANSWER: an insurance company authorized and
licensed to transact business in a particular state.
unauthorized (nonadmitted) insurer - ANSWER: an insurance company or insurer not
licensed to transact business
(also known as Excess and Surplus insurance) or (E&S) or (surplus lines)
life insurance - ANSWER: a contract between an insurer and policyholder specifying a
sum to be paid to a beneficiary upon the insured's death
transfers - ANSWER: a basic principal of an insurance under which the risk of
financial loss is assigned to another party
pure risk - ANSWER: refers to situations that can only result in a loss or no change
speculative risk - ANSWER: opportunity for either loss or gain
hazzard - ANSWER: circumstance that increases the likelihood of a loss
hazzard, moral - ANSWER: the effect of a persons reputation, character, living habits,
ect. on his/her insurability
, hazzard, morale - ANSWER: the effect a persons indifference concerning loss has on
the risk to be insured
hazzard, physical - ANSWER: arises from the physical characteristics from an
individual such as: physical disability due to current circumstance or condition
present at birth
law of agency - ANSWER: the relationship between the principal and the
agent/producer
health insurance - ANSWER: insures against the medical expenses and/or loss of
income caused by the insured's sickness or accidental injury
property insurance - ANSWER: insures against the loss of physical property or the
loss of its income-producing abilities
casualty insurance - ANSWER: insures against the loss and/or damage of property
and resulting liabilities
express - ANSWER: authority a principal intends to grant in contract
apparent - ANSWER: assumption of authority based on actions, words, or deeds
because of circumstances
retention (known as self insurance) - ANSWER: method of dealing with risk by
intentionally or unintentionally keeping a portion of it for the insureds account: the
amount if responsibility assumed but not reinsured by the insurance company
purpose of retention - ANSWER: 1. to reduce expenses and improve cash flow
2. to increase control of claim reserving and claims settlements
3. to fund for losses that cannot be insured
sharing - ANSWER: a method of dealing with risk for a group of individual persons or
businesses with the same or similar exposure to loss who share the losses that occur
within that group.
loss - ANSWER: the reduction, decrease, or disappearance of value of the person or
property insured in a policy by a peril insured against
avoidance - ANSWER: a method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash,
he/she might choose never to fly in a plane).
reduction - ANSWER: lessening the possibility or severity of a loss.
elements of insurable risk - ANSWER: due to chance, definite and measurable,
statistically predictable, not catastrophic, randomly selected and large loss exposure
