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NC HEALTH INSURANCE EXAM PEARSON
VUE QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS.
Pure Risk - correct answer- chance of loss or no loss but not
gain insurable
Speculative Risk - correct answer- there is possibility of loss but
of gain no insurablility
exposure unit - correct answer- subject to loss
peril - correct answer- cause of loss
life insurance - correct answer- death
Health insurance - correct answer- accident and sickness
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hazard - correct answer- increases the likelihood or severity of
loss
Three types of hazard - correct answer- physical, moral, morale
physical hazard - correct answer- arise from the inherent
characteristic of the exposure unit
Moral Hazard - correct answer- lifestyle of the insured person
Morale hazard - correct answer- arise more from an outlook on
life
risk avoidance - correct answer- eliminating all risk altogether
risk retention - correct answer- manage risk Deduction
self-insurance - correct answer- instead of buying health
insurance and saving $ in the bank
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Pure risk that are not insurable - correct answer- Flood, War,
Catastrophic losses
Intentional losses - correct answer- not insurable
Adverse selection - correct answer- bad for insurance
insurance actuary - correct answer- a specially trained
mathematician who calculates premiums
underwriter - correct answer- checks out the medical history of
the proposed insured and other factors to eliminate adverse
selection against the insurance company, issue policy premium
restrictions
Days for applicant to requests an explanantion - correct
answer- 90 days
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Days insurance company must furnish an explanation - correct
answer- 21 days
A dispute must begin within in - correct answer- 30 days
Law of Large numbers - correct answer- the larger the number
the easier it is to predict losses
how much $ must a insurance company have in reserve at all
times - correct answer- 4 million
Reinsurance agreements - correct answer- enable an
insurance company the ceding company to transfer risk to the
reinsurer (seller)
Capital Stock companies are owned by - correct answer- stock
holders and most common
Main purpose of the stock company - correct answer- make a
profit for its investors
NC HEALTH INSURANCE EXAM PEARSON
VUE QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS.
Pure Risk - correct answer- chance of loss or no loss but not
gain insurable
Speculative Risk - correct answer- there is possibility of loss but
of gain no insurablility
exposure unit - correct answer- subject to loss
peril - correct answer- cause of loss
life insurance - correct answer- death
Health insurance - correct answer- accident and sickness
,2 | Page
hazard - correct answer- increases the likelihood or severity of
loss
Three types of hazard - correct answer- physical, moral, morale
physical hazard - correct answer- arise from the inherent
characteristic of the exposure unit
Moral Hazard - correct answer- lifestyle of the insured person
Morale hazard - correct answer- arise more from an outlook on
life
risk avoidance - correct answer- eliminating all risk altogether
risk retention - correct answer- manage risk Deduction
self-insurance - correct answer- instead of buying health
insurance and saving $ in the bank
,3 | Page
Pure risk that are not insurable - correct answer- Flood, War,
Catastrophic losses
Intentional losses - correct answer- not insurable
Adverse selection - correct answer- bad for insurance
insurance actuary - correct answer- a specially trained
mathematician who calculates premiums
underwriter - correct answer- checks out the medical history of
the proposed insured and other factors to eliminate adverse
selection against the insurance company, issue policy premium
restrictions
Days for applicant to requests an explanantion - correct
answer- 90 days
, 4 | Page
Days insurance company must furnish an explanation - correct
answer- 21 days
A dispute must begin within in - correct answer- 30 days
Law of Large numbers - correct answer- the larger the number
the easier it is to predict losses
how much $ must a insurance company have in reserve at all
times - correct answer- 4 million
Reinsurance agreements - correct answer- enable an
insurance company the ceding company to transfer risk to the
reinsurer (seller)
Capital Stock companies are owned by - correct answer- stock
holders and most common
Main purpose of the stock company - correct answer- make a
profit for its investors
