Chapter 1

Question 1

what is the insuring of risks that are more prone to losses than the average risk

Answer 1

Adverse Selection

Question 2

what is a legal representative of an insurance company

Answer 2

Agent/Producer

Question 3

Who is a person applying for insurance

Answer 3

Applicant/Proposed Insured

Question 4

Who is a person who receives the benefits of an insurance policy

Answer 4

Beneficiary

Question 5

What is the amount paid upon the death of the insured in a life insurance policy

Answer 5

Death Benefit

Question 6

What is intentional misrepresentation or deceit with the intent to induce a person to part with something of value

Answer 6

Fraud

Question 7

What is a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events

Answer 7

Insurance Policy

Question 8

Who is the person covered by the insurance policy; may or may not be the policyowner

Answer 8

Insured

Question 9

What is the company who issues an insurance policy

Answer 9

Insurer

Question 10

What is a policy termination due to nonpayment of premium

Answer 10

Lapse

Question 11

What is coverage on human lives

Answer 11

Life Insurance

Question 12

Who is the person entitled to exercise the rights and privileges in the policy

Answer 12

Policyowner

Question 13

What is the money paid to the insurance company for the insurance policy

Answer 13

Premium