Primerica Pre-licensing Course
comprehensive exam quizzes with
well defined solutions graded a plus
agent - Ans>>>legal representative of an insurance company;
the classification of producer usually includes agents and
brokers; agents are the agents of the insurer
insured - Ans>>>the person covered by the insurance policy;
this person may or may not be the policyowner
broker - Ans>>>an insurance agent not appointed by an insurer
and is deemed to represent the client
insurance policy - Ans>>>a contract between a policyowner
(and/or insured) and an insurance company which agrees to
,pay the insured or the beneficiary for loss caused by specific
events
insurer - Ans>>>the company who issues an insurance policy
policyowner - Ans>>>the person entitled to exercise the rights
and privileges in the policy
premium - Ans>>>the money paid to the insurance company
for the insurance policy
reciprocity - Ans>>>a mutual interchange of rights and
priveleges
risk - Ans>>>the uncertainty or chance of a loss occurring
pure risk - Ans>>>situations that can only result in a loss or no
change; no opportunity for financial gain
speculative risk - Ans>>>involves the opportunity for either loss
or gain; not insurable
,hazard - Ans>>>condition or situation that increases the
probability of an insured loss occurring
physical hazard - Ans>>>individual characteristic that increases
the chance of a cause of loss; exists because of a physical
condition, past medical history, or condition at birth (i.e.
blindness)
moral hazard - Ans>>>tendency towards increased risk;
involves evaluating the character and reputation of the
proposed insured; these applicants may lie on an application
for insurance, or have submitted fraudulent claims in the past
morale hazard - Ans>>>similar to moral hazards; arise from a
state of mind that causes indifference to loss, such as
carelessness; actions taken without forethought may cause
physical injuries
peril - Ans>>>the cause of the loss insured against in an
insurance policy
life insurance - Ans>>>insures against the financial loss caused
by the premature death of the insured
, health insurance - Ans>>>insures against the medical expenses
and/or loss of income caused by the insured's sickness or
accidental injury
property insurance - Ans>>>insures against the loss of physical
property or the loss of its income-producing abilities
casualty insurance - Ans>>>insures against the loss and/or
damage of property and resulting liabilities
loss - Ans>>>the reduction, decrease, or disappearance of value
of the person or property insured in a policy, caused by a
named peril; insurance provides a means to transfer loss
sharing risk - Ans>>>a method of dealing with risk for a group
of individual persons or businesses with the same or similar
exposure to loss to share the losses that occur within that
group; a reciprocal insurance exchange is a risk-sharing
arrangement
comprehensive exam quizzes with
well defined solutions graded a plus
agent - Ans>>>legal representative of an insurance company;
the classification of producer usually includes agents and
brokers; agents are the agents of the insurer
insured - Ans>>>the person covered by the insurance policy;
this person may or may not be the policyowner
broker - Ans>>>an insurance agent not appointed by an insurer
and is deemed to represent the client
insurance policy - Ans>>>a contract between a policyowner
(and/or insured) and an insurance company which agrees to
,pay the insured or the beneficiary for loss caused by specific
events
insurer - Ans>>>the company who issues an insurance policy
policyowner - Ans>>>the person entitled to exercise the rights
and privileges in the policy
premium - Ans>>>the money paid to the insurance company
for the insurance policy
reciprocity - Ans>>>a mutual interchange of rights and
priveleges
risk - Ans>>>the uncertainty or chance of a loss occurring
pure risk - Ans>>>situations that can only result in a loss or no
change; no opportunity for financial gain
speculative risk - Ans>>>involves the opportunity for either loss
or gain; not insurable
,hazard - Ans>>>condition or situation that increases the
probability of an insured loss occurring
physical hazard - Ans>>>individual characteristic that increases
the chance of a cause of loss; exists because of a physical
condition, past medical history, or condition at birth (i.e.
blindness)
moral hazard - Ans>>>tendency towards increased risk;
involves evaluating the character and reputation of the
proposed insured; these applicants may lie on an application
for insurance, or have submitted fraudulent claims in the past
morale hazard - Ans>>>similar to moral hazards; arise from a
state of mind that causes indifference to loss, such as
carelessness; actions taken without forethought may cause
physical injuries
peril - Ans>>>the cause of the loss insured against in an
insurance policy
life insurance - Ans>>>insures against the financial loss caused
by the premature death of the insured
, health insurance - Ans>>>insures against the medical expenses
and/or loss of income caused by the insured's sickness or
accidental injury
property insurance - Ans>>>insures against the loss of physical
property or the loss of its income-producing abilities
casualty insurance - Ans>>>insures against the loss and/or
damage of property and resulting liabilities
loss - Ans>>>the reduction, decrease, or disappearance of value
of the person or property insured in a policy, caused by a
named peril; insurance provides a means to transfer loss
sharing risk - Ans>>>a method of dealing with risk for a group
of individual persons or businesses with the same or similar
exposure to loss to share the losses that occur within that
group; a reciprocal insurance exchange is a risk-sharing
arrangement
