WEBCE Life And Health (281 Questions) With 100% Correct Verified Answers
Representations and Warranties - Representations are statements the applicant
... [Show More] makes on an application that are deemed to be true to the applicant's best knowledge. Warranties are statements the insurer makes in the contract.
Underwriting vs. Actuarial Departments - Two related insurance company functions. Through the process of _________, applications are assessed for insurability and to assign premium rates. The ________ department analyzes data to help estimate future losses and to produce rate tables.
Managerial System vs. General Agency System - Two variations of the career agency system in which producers represent a single company. One is headed by a company employee called a general manager (GM), the other by an independent contractor called a general agent (GA).
Fraternal Insurance Company - A non-profit form of insurance provider sponsored by an organization of people who share a common ethnic, religious, or vocational affiliation.
Peril and Hazard - Two related general insurance terms:
Peril is the immediate cause of a loss (and the event that is insured against).
Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - A type of contract in which one party (the offeror) drafts the terms that must be accepted as-is by the offeree. Insurance policies are this type.
Mutual Insurance Company - A form of insurance company that is owned by policyowners. May distribute policy dividends (non-taxable) through participating policies.
Independent Agency System - An insurance distribution system in which the manager and producers are fully independent and not affiliated with any single insurer.
Buyer's Guide and Policy Summary - Two related disclosure documents that are required by most states to be presented to life and health insurance applicants at some point during the buying process.
Risk - A basic insurance term referring to the possibility of incurring a loss.
Law of Large Numbers - A mathematical principle that is the basis for predicting the odds of a loss occurring in a certain population in any given year.
Social Security (OASDI) - A federal insurance program that provides disability, death, and retirement benefits to covered workers and their qualifying beneficiaries.
Agents vs. Brokers - Two basic types of insurance producer: an ______ represents a single insurer and a _____ sells policies from multiple insurers.
Reinsurance - The process through which insurance companies spread large risks among other insurers.
Domestic, Foreign, and Alien Insurers - Insurers can be categorized by their state of domicile. There are three categories, known as _____, _____, and _____.
Stock Insurance Company - A form of insurance company that is owned by stockholders who may or may not also be policyowners. May distribute stock dividends (taxable).
Admitted Insurer - An insurer that has a certificate of authority in a given state is said to be an___________ insurer in that state. [Show Less]