Insurance Basics: Terms, Concepts, and Regulations, Exams of Nursing

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Life insurance exam Questions and Answers 2024 life insurance Correct Answer is insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured,may b annuity or endowment, may incl benef for accident death/dismemberment, disability, protects against risk pf premature death which exposes a finNcial riskto family or business. ie:burial expenses, pay debts, loss of family inc/business profits insurance Correct Answer is content that indemnifies another against loss, damage, liab arising from unknown event indemnify Correct Answer is make a person whole by restoring that person to the same financial poistion that existed. 4 the loss insured Correct Answer is policy owner premium Correct Answer is set amount of money payable for policy/coverage insurance company Correct Answer is insurer policy Correct Answer is agreement insurer and insured, agreeement/contract loss Correct Answer is reduction in value and asset claim Correct Answer is demand for payment of insured benefit to person named in policy risk Correct Answer is uncertainty of financial loss when one or more outcome is possible. must be element of doubt and uncertainity pure risk Correct Answer is only a chance of loss, only pure risk is insurable, risk associated with chance of loss speculative risk Correct Answer is involves both uncertain of loss and gain ie betting at a race track/ investing in the stock market peril Correct Answer is immediate specific event causing loss and giving rise to risk. ie building burns as a result of "fire" or person dies as a result of "death" hazard Correct Answer is fsctor that gives rise to peril three types of hazards Correct Answer is physical, moral, morale physical hazard Correct Answer is arises from material, structural, or operational features ie: unsanitary conditions slippery floors moral hazard Correct Answer is arise from peoples habits or values (lying, cheating) morale hazard Correct Answer is arises out of human negligence ie: dont wear seatbelt 5 ways to manage risks Correct Answer is share transfer avoid reduction retention sharing risk Correct Answer is when risk cannot be avoided& retention causes too much exposure transfer risk Correct Answer is move risk to another insurance co types of transfers Correct Answer is non insurance and contract avoidance of risk Correct Answer is abstenance reduction of risk Correct Answer is smoke alarm to reduce potential loss retention of risk Correct Answer is do nothing, assume part of risk yourself ie: deductible law of large numbers Correct Answer is direct response, franchise direct response Correct Answer is conducted by mail, ads,newspaper, magazines, tv, radio having limited benefits and low premium ie disability only franchise marketing Correct Answer is provides cov to employees of small firms or to members of assoc receive indiv policies that vary according to indiv needs. employers can offer employees insur at a lower prem, poss ddeducted from their payck producer Correct Answer is agent repres ins co or broker rep potential insd categories of producers Correct Answer is life and health,prop n cas, brokers, soilcitors, ins consultants life and health agent Correct Answer is usually rep insurer to the buyer and do not have authority to issue or modify ins contracts prop and cas agents Correct Answer is granted more authority by ins co, may bind or commit co by oral or written agreement, accept risks, collect premiums, issue contracts brokers Correct Answer is reps for buyer to insurer who select ins coverages from various cos for their. clients solititors Correct Answer is salespersom for the ins co who works for the agent or broker insurance consultant Correct Answer is not paid by commision, work strictly for benefit of insured and pd a fee by insured actuaries Correct Answer is mathematicians who study and compile statistical data regarding exposure and risks for insurance company major channels of regulation in the ins industry Correct Answer is federal, state, self federal regulation Correct Answer is applies to idiv or companies whose activities affect interstate commerce, oversee areas not cov by state regulation of the industry paul vs virginia Correct Answer is transact of ins across state lines was not interstate commerce and therefore should be regulated by local law, held for 75 yrs southeastern underwriters decision Correct Answer is supreme ct decision overturned paul vs virginia: ins trNsacted across state lines WAS in fact interstate commerce McCarran ferguson act Correct Answer is 1945 enacted by congress:fed govt has roght to regulate bus of ins that is not regulated by state law privacy Correct Answer is disclosure authorization, penalties privacy Correct Answer is protect the public frominaccurate or misused info disclosure authorization Correct Answer is producers respons to explain to applicant various resources from which insurer will obtain info regarding that applicants insurability disclosure authorization Correct Answer is forms must be furnished stating who is author to disclose personal info, kimf of info that may be disclosed, reason info is being colllected, how it will b used penalty for any one person who obtains info about a client without having a legit reason to recv it Correct Answer is $10000 or up to one year on jail fair credit reporting act Correct Answer is ...all insurers must comply with this. ..regarding info obtained from a third party concerning the applicant consumer rights Correct Answer is persons may dispute info they feel is inaccurate or imcomplete and may require reporting agency to correct or delete info. notice to applicant Correct Answer is informs applicant a report will b ordered concerning past credit report history and any other life and health insurance for which they have aplied violators of fair reporting act Correct Answer is $5000 fine, pay damages suffered by consumer, attny fees punitive damages, imprisonment for one yr for obtaining info under false pretenses consumer report Correct Answer is contains a persons credit info, character reputation , habits used or collected to determine whether a person is elegible for credit, insurance, employment or other purposes investigate consumer report Correct Answer is includes info re persons character, personal habits, and mode of living obtsined thru investigation ie: interviews with assoc , friends person must be informed to obtain info pretext interview Correct Answer is someone pretends to b someone else to obtain info about another person, pretends to b someone else, misreps the purpose of interview, refuses to properly identify themself pretext interview Correct Answer is prohibited inles evidence of criminal activity, fraud or misrepresentation consumer reporting agency Correct Answer is collects info on people, prepare reports and make them avail to organiz with legit reason to recv info experian / equifax Correct Answer is profit consumer reporting agency medical information bureau or credit union Correct Answer is nonprofit reporting agency agnecies are required to provide a notification system to consumers that allow them to request exclusion of their info. how long is this nitification good for? Correct Answer is 2 years fraud and false statements Correct Answer is making false material statements, making false entry of material in any report/statement to deceive, embezzeling or misappropriating monies, corruptin/influencing admin from an ongoing investigation of a rep of insurer financial services modernization Correct Answer is also know as Graham-Leach-Bliley Act (GLBA) graham leach blilely act Correct Answer is passed n 1999 to remove depressn area barriers between commercial banking investment banking and insurance to allowstate ins regulators to oversee banks as a holding co for ins purposes