How do insurers predict the increase of individual risks?

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How do insurers predict the increase of individual risks?

A) Law of large numbers
B) U.S. Census
C) Average mortality incidents
D) Experience of morbidity

Answer: A) Law of large numbers

Nature of Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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The pro rata liability clause is designed to protect the principle of
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Fixed annuities provide each of the following EXCEPT
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A domestic insurer issuing variable contracts must establish one or more
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All of these statements about the Waiver of Premium provision are correct EXCEPT
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A beneficiary change can occur
No existing agent's license will be revoked until
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A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
The minimum interest rate on an equity indexed annuity is often based on
Under an extended term nonforfeiture option, the policy cash value is converted to
Which type of life insurance policy generates immediate cash value?
What rule is used to determine the importance of a representation?
Which of the following is NOT the purpose of HIPAA?
The pro rata liability clause is designed to protect the principle of
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Life insurance policies will normally pay for losses arising from
Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
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All of the following statements are true regarding installments for a fixed amount EXCEPT
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A securities license is required for a life insurance producer to sell
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?
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All of the following are true regarding a decreasing term policy EXCEPT
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The authority granted to a licensed producer is provided via the
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The pro rata liability clause is designed to protect the principle of
When the principal gives the agent authority in writing, it's referred to as
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All of the following are elements of an insurance policy EXCEPT
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The paid-up addition option uses the dividend
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Who is responsible for assembling the policy forms for insureds?
Life income joint and survivor settlement option guarantees
What is the other term for the cash payment settlement option?
Which of the following is NOT true regarding the accumulation period of an annuity?
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Which of the following is NOT an example of utilization review?
The requirement that agents not commingle insurance monies with their own funds is known as
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Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
Insurance represents the process of risk
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What is the purpose of establishing the target premium for a universal life policy?
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