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PSI Life Insurance Test (solved) Questions and Answers 2024.

Insurance policies are considered aleatory contracts because: 1)they are take it or leave it contracts 2)both parties consent to the contract 3)performance is conditioned upon a future occurence 4)the contract is voidable upon proof of fraud - ANSWER-Performance is conditioned upon a future occurence, because there is an element of chance and potential for unequal exchange of value K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which th...

Life and Health Insurance Exam Update Life & Health Insurance Final Exam Test Questions and Correct Answers Rated A+

Wisconsin Life Insurance Exam|Latest Update Graded A+ Mortality The rate people will die Morbidity The rate people will get sick Peril The cause of loss and the event insured against. Ex: premature death, dependency during old age, accident, and sickness Adverse Selection The tendency for poorer than average risks to seek out insurance Annuity Annuities protect against the risk of living longer than expected. Annuities provide a guaranteed life income to protect agains...

Wisconsin Life Insurance Exam|Latest Update Graded A+ Cross Purchase Plans Agreements that provide that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals. Entity Plans Agreements in which a business assumes the obligation of purchasing a deceased owner's interest in the business, thereby proportionately increasing the interests of surviving ow...

Wisconsin Life Insurance Course Exam Questions With Answers Graded A+ Stock Companies -private organization focused to make profits for shareholders -Stock dividends are paid to stock holders -policyholders do not participate Mutual Companies -have no stock holders -owners are policy owners -policy holders can vote for members of the board -policy owners receive dividends Lloyd's of London -A syndicate of individuals who underwrite insurance Reinsurers -are a specialize...

Life & Health Insurance Exam With Complete Solutions Graded A+ Insurance - Is a contract that transfers the risk of financial loss from an individual or business to an insurer. In return, the insurer agrees to cover the individual or business for certain losses if they occur. - state run Peril What more so directly caused the loss, for example: fire, wind, theft, and water. Hazard Something that can increase the chance of a loss occurring. There remains three types of hazards: m...

Life & Health Insurance Exam With Complete Solutions Graded A+ Concept of insurance The transfer of risk from one party to another through a legal contract. Law of Large Numbers The larger the number of risks insured in the same risk pool; the more predictable losses become. Peril An immediate, specific event that causes a loss. Loss An unintended, unforeseen reduction, or destruction of financial or economic value. Hazard Creates an increased possibility that a peril (...

Life & Health Insurance Exam With Complete Solutions Graded A+ What year was the McCarren-Ferguson Act enacted? 1945 Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated? 1070 Fair Credit Reporting Act A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: fraternal benefit society What type of reinsurance contract involves two companie...

Life & Health Insurance Exam With Complete Solutions Graded A+ Actuarial Department calculates policy rates, reserves, and dividends Alien Insurer is an insurer whose principal office and domiciled location is outside US Admitted Insurer an admitted or authorized insurer is an insurer who has received a certification of authority from a state's department of insurance authorizing them to conduct insurance business in that state broker a broker represents themselves and the i...