Term
All of the following influence the premiums charged for life insurance policies, EXCEPT?
A.) Mortality
B.) Agent Commisions
C.) Investment Return
D.) Insurance Commissioner |
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Definition
| D.) Insurance Commissioner |
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Term
Which of the following spreads the risk of loss from one person to a large number of people through the pooling of collected premiums.
A.) Transference
B.) Insurance
C.) Pure Risk
D.) Risk Management |
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Definition
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Term
Insurance aids in reducing uncertainty with regard to possible financial losses. Which of the following best identifies the uncertainty concerning loss or chance of loss?
A.) Hazard
B.) Risk
C.) Law of Large Numbers
D.) Retention |
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Definition
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Term
Which of the following best defines the concept known as life insurance?
A.) The liquidation of funds
B.) The investment of funds
C.) The immediate creation of funds
D.) The financial interest in another's life |
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Definition
| C.) The immediate creation of funds |
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Term
An insurance contract is an agreement between two parties. Which of the following are the parties involved in a life insurance contract?
A.) Policy owner and beneficiary
B.) Insurer and policy owner
C.) Insured and beneficiary
D.) Insurer and beneficiary |
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Definition
| B.) Insurer and policy owner |
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Term
Several financial burdens exist upon the death of an individual. Each of the following is a cost associated with death, EXCEPT:
A.) Burial expenses
B.) Estate Taxes
C.) Indemnification expenses
D.) Debt Obligations |
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Definition
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Term
In order for one person to purchase life insurance on the life of another a valid insurable interest must be present. When must insurable interest exist in life insurance?
A.) At the time of loss
B.) At the time of application
C.) When death occurs
D.) At the time of underwriting |
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Definition
| B.) At the time of application |
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Term
Which of the following help to reduce or avoid adverse selection?
A.) Speculative Risk
B.) Investment Income
C.) Human Life Values
D.) Sound Underwriting |
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Definition
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Term
Which of the following approaches used to determine the approaches used to determine the appropriate amount of life insurance involves an individual's future earning capacity?
A.) Needs Approach
B.) Human Life Value Approach
C.) Projection Approach
D.) Financial Objectives Approach |
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Definition
| B.) Human Life Value Approach |
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Term
A net signal premium primarily looks to which of the following?
A.) Mortality, interest and expenses
B.) Interest and Expenses
C.) Morality and Expenses
D.) Death Benefit |
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Definition
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