Arizona Health Insurance Exam | Questions and answers with 100% correct solutions | Graded A+
Insurance ✔✔a contract in which one party (the insurance company) agrees to "make whole" the
insured party against loss, damage or liability arising from an unlikely event
In ___________ insurance, the policy protects survivors from losses suffered after the insured's death
✔✔Life
Insurance __________ the risk of loss from an individual or business to an insurance company
✔✔Transfers
Risk ✔✔the uncertainty or chance of a loss occurring
Pure Risk ✔✔situations that can only result in a loss or no change
In __________ risk, there is no opportunity for financial gain ✔✔Pure
__________ risk is the only type of risk that insurance companies are willing to accept ✔✔Pure
Speculative Risk ✔✔involves the opportunity for loss or gain
__________ risk is not insurable ✔✔Speculative
Exposure ✔✔unit of measurement used to determine rates charged for insurance coverage
4 Determining Factors in Life Insurance ✔✔- Age of insured
- Medical history
- Occupation
- Sex of insured
Homogeneous ✔✔a large number of units having the same or similar exposure to loss
What is the basis of insurance? ✔✔Sharing the risk among members of a large homogeneous group with
similar exposure to loss
Hazards ✔✔conditions or situations that increase the probability of an insured loss occurring
Physical Hazards ✔✔individual characteristics that increase the chances of the cause of loss
__________ hazards exist because of physical condition, past medical history, or a condition at birth.
✔✔Physical