LIFE AND HEALTH INSURANCE EXAM WEBCE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED UPDATE

LIFE AND HEALTH INSURANCE EXAM WEBCE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED UPDATE Leave the first rating Practice questions for this set Terms in this set (180) 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 Reinsurance The transfer of insurance risk from one insurer to another through a contractual agreement Difference between Admitted and Non- admitted insurers certification to due business in that state Five elements of legal contract offer acceptance consideration competent parties legal purpose