MI LIFE PRODUCER EXAM NEWEST 2024 WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED
ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO
PASS CONCEPTS!!!
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
QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED
ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO
PASS CONCEPTS!!!
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
