Alabama Health Insurance Exam
Pure - Insurance is defined as the transfer of ______________ risk
to the insurance company in consideration for a premium.
Pure Risk - The chance of loss without any chance of gain is called
___________
Speculative Risk - has the possibility for gain or loss and is not
insurable.
Risk - is defined as the chance of loss.
Exposure - A condition that could result in a loss is known as
Hazard - is something that increases the chance of loss.
Physical Hazard - The presence of a _____________ increases
the chance of a loss occurring.
Peril - defined as a cause of loss, such as fire.
Calculable - To be insurable, losses must be ___________.
Law of Large Numbers - allows insurers to predict claims more
accurately.
Groups of people, not individuals - The law of large numbers
applies to ___________.
the more accurate the predictions are - The law of large numbers
applies to groups of people, not to individuals. The more people in
the group ______________.
,reinsurance , catastrophic loss - Most insurers buy_____________
to protect themselves in the event of a_______________.
Insurance laws - are not required to be uniform from one state to
another.
Stock insurer may pay - dividends to its shareholders
(stockholders), but they may not be guaranteed.
No - Stock insurers pay the dividends to its shareholders
(stockholders), are they guaranteed.
attorney-in-fact - A reciprocal insurance company is managed by
an
Reciprocal Insurers - An unincorporated association of individuals
who insure each other is known as a
social needs, such as flood insurance and workers compensation -
The government offers insurance primarily based upon
preventing fraud - The government offers insurance primarily
based upon social needs and not
Foreign - company has their home office in another state
Alien - company has their home office in another country
Are made by the business and are not tax-deductible - Key Person
disability income policy, premium payments
insured or the insured's estate - Claims other than death benefits
are to be paid to the_____________, unless otherwise assigned
by the insured.
,unilateral - An insurance contract is___________ in that only one
of the parties to the contract is legally bound to do anything.
If forms are not furnished, written proof of the occurrence, nature
of the loss, and extent of loss must be submitted to the - insurer
20% tax - If a distribution is made for a reason other than to pay for
qualified medical expenses, the amount withdrawn will be subject
to an income tax and an additional
extended nursing home care - Medicare supplement policies
(Medigap) do not cover the cost of
Medigap plans are designed - to fill the gap in coverage attributable
to Medicare's deductibles, copayment requirements, and benefit
periods. These plans are issued by private insurance companies.
If a person is still employed at the age of 65, he or she may choose
- to either continue group coverage and defer Medicare until
retirement, or switch to Medicare.
The purpose of a license is to primarily write - non-controlled
business
Defamation - When producer was reviewing a potential customers
coverage written by another company the producer made several
remarks that were maliciously critical of that other insurer. The
producer count be found guilty of (oral or written remarks)
Low maximum limits - What policy characteristics of a Major
Medical Expense don't EXCEPT
High Maximum Limits - Characteristics of a Major Medical Expense
Blanket Coverage - Characteristics of a Major Medical Expense
, Coinsurance - Characteristics of a Major Medical Expense
Deductible - Characteristics of a Major Medical Expense
Lower than individual policies, but higher than group policies - In
franchise insurance, premiums are usually
Physical examination and autopsy - Mandatory provision in
individual health insurance policies stating that the insurer, at its
own expense, has the right and opportunity and is
Workers Compensation - state programs that benefits are payable
when workers suffer work-related injury regardless of fault or
negligence
Only if its part of treatment for covered illness or injury - When does
Medicare cover nursing home care?
The lending institution - Who is the beneficiary in a credit health
policy?
An insured has medical insurance coverage through 2 different
provider both covering same expense . Neither company know in
advance that the insured has coverage through any other Insurers.
How claim is handled? - Each insurer should pay a proportionate
share of the claim
Presumptive Disability - Offers Full Benefits. Total or permanent
disability due to loss of sight, hearing, speech or 2 + limbs; benefits
paid even while continuing to work.
40 Quarters - Under Social Security disability requirements, a
worker is fully insured on a permanent basis after having worked in
a covered occupation for:
Pure - Insurance is defined as the transfer of ______________ risk
to the insurance company in consideration for a premium.
Pure Risk - The chance of loss without any chance of gain is called
___________
Speculative Risk - has the possibility for gain or loss and is not
insurable.
Risk - is defined as the chance of loss.
Exposure - A condition that could result in a loss is known as
Hazard - is something that increases the chance of loss.
Physical Hazard - The presence of a _____________ increases
the chance of a loss occurring.
Peril - defined as a cause of loss, such as fire.
Calculable - To be insurable, losses must be ___________.
Law of Large Numbers - allows insurers to predict claims more
accurately.
Groups of people, not individuals - The law of large numbers
applies to ___________.
the more accurate the predictions are - The law of large numbers
applies to groups of people, not to individuals. The more people in
the group ______________.
,reinsurance , catastrophic loss - Most insurers buy_____________
to protect themselves in the event of a_______________.
Insurance laws - are not required to be uniform from one state to
another.
Stock insurer may pay - dividends to its shareholders
(stockholders), but they may not be guaranteed.
No - Stock insurers pay the dividends to its shareholders
(stockholders), are they guaranteed.
attorney-in-fact - A reciprocal insurance company is managed by
an
Reciprocal Insurers - An unincorporated association of individuals
who insure each other is known as a
social needs, such as flood insurance and workers compensation -
The government offers insurance primarily based upon
preventing fraud - The government offers insurance primarily
based upon social needs and not
Foreign - company has their home office in another state
Alien - company has their home office in another country
Are made by the business and are not tax-deductible - Key Person
disability income policy, premium payments
insured or the insured's estate - Claims other than death benefits
are to be paid to the_____________, unless otherwise assigned
by the insured.
,unilateral - An insurance contract is___________ in that only one
of the parties to the contract is legally bound to do anything.
If forms are not furnished, written proof of the occurrence, nature
of the loss, and extent of loss must be submitted to the - insurer
20% tax - If a distribution is made for a reason other than to pay for
qualified medical expenses, the amount withdrawn will be subject
to an income tax and an additional
extended nursing home care - Medicare supplement policies
(Medigap) do not cover the cost of
Medigap plans are designed - to fill the gap in coverage attributable
to Medicare's deductibles, copayment requirements, and benefit
periods. These plans are issued by private insurance companies.
If a person is still employed at the age of 65, he or she may choose
- to either continue group coverage and defer Medicare until
retirement, or switch to Medicare.
The purpose of a license is to primarily write - non-controlled
business
Defamation - When producer was reviewing a potential customers
coverage written by another company the producer made several
remarks that were maliciously critical of that other insurer. The
producer count be found guilty of (oral or written remarks)
Low maximum limits - What policy characteristics of a Major
Medical Expense don't EXCEPT
High Maximum Limits - Characteristics of a Major Medical Expense
Blanket Coverage - Characteristics of a Major Medical Expense
, Coinsurance - Characteristics of a Major Medical Expense
Deductible - Characteristics of a Major Medical Expense
Lower than individual policies, but higher than group policies - In
franchise insurance, premiums are usually
Physical examination and autopsy - Mandatory provision in
individual health insurance policies stating that the insurer, at its
own expense, has the right and opportunity and is
Workers Compensation - state programs that benefits are payable
when workers suffer work-related injury regardless of fault or
negligence
Only if its part of treatment for covered illness or injury - When does
Medicare cover nursing home care?
The lending institution - Who is the beneficiary in a credit health
policy?
An insured has medical insurance coverage through 2 different
provider both covering same expense . Neither company know in
advance that the insured has coverage through any other Insurers.
How claim is handled? - Each insurer should pay a proportionate
share of the claim
Presumptive Disability - Offers Full Benefits. Total or permanent
disability due to loss of sight, hearing, speech or 2 + limbs; benefits
paid even while continuing to work.
40 Quarters - Under Social Security disability requirements, a
worker is fully insured on a permanent basis after having worked in
a covered occupation for:
