exam for work
hazards are classified as
Physical, Moral, Morale
adverse selection is a concept best described as
Risks with higher probability of loss seeking insurance more often than other risks.
involves the opportunity for either loss or gain.
Speculative risk
Peril is most easily defined as
The cause of loss insured against
what documentation grants express autority to an agent
agents contract with the principal
type of agent also called "percieved authority"
apparent
in insurance an offer is usually made when
applicant submits an application to the insurer
an applicant knowlingly fails to communicate info that would help underwriter mske s solving decision regarding coverage.
concealment
An insurance contract requires both to insured and insurer meet certain conditions in order for the contract to be enforceable. what contract characteristics does this meet?
conditional
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
consideration
A loss that is specificc as to cause/ time/ place/ amount insurer must be able to determine how much benefit.
definite and measureable
a loss that is outisde insureds control
due to chance
avoidance
eliminating exposure to a loss
The authority granted to an agent through the agents contract is referred as
express authority
what insurance concept is associated with the names of weiss and fitch
guides describing company financial integrity
in insurance transactions fiduciary responsiblilites means
handling insurer funds in a trust capacity
conditions or situtions increase probability of insured loss occuring
hazards
transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.
insurance
what law states the larger numbers of people with a similar exposure to loss the more predictable actual losses will be
law of large numbers
defined as reduction, decrease, or disapperance
loss
who are owned by policy owners
mutual companies
stock companies issue
non participationg
who does not pay dividends to policy owners?
nonparitcipatijng
who doesnt share profits or losses? what policy?
nonparticipatijng
mutual companies issues
participating policies
a participating insurance policy may do which of the following
pay divendends to policyowner
a tornado that destroys property would be an example of
peril
what is the cause of loss insured aganist in insurance policy
peril
self insurance, deductibles, and copayments are examples of risk retnetion except
premiums
which of the following statments is an accurate comparasion bw private and goverment insureres
private insurers may be authorized to transact insurance by state insurance department
can only result in loss or no change
pure risk
the risk of loss may be classified as
pure risk and speculative risk
what is the purpose of risk retention?
reduce expenses, and improve cash flow. increase control of claim reserving. fund for loss that cannont be insured.
installing deadbolt locks on the doors is an example of which method of handling risk
reduction
uncertainty or chance of a loss occuring
risk
a reciprocal insurance exchange is a formal
risk sharing arrangement
what is the method of dealing risk for a group of indiviudal or business
sharing
stock companies are owned by
stockholders
taxable divendends are paid to
stockholders
officiers are selectwd by
stockholders and manage stock insurance company
Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT
the loss be intentional
what is the most effective way to handle risk?
transfer it
an insurance company recieves an application with some info missing but still issues it anyways. what is this issue called?
waiver
