Kentucky Life and Health Insurance Exam Prep| Questions and Verified Answers| 100 % Correct| Grade A (Latest 2024/ 2025 Update)

Kentucky Life and Health Insurance Exam Prep| Questions and Verified Answers| 100 % Correct| Grade A (Latest 2024/ 2025 Update) Q: what is loss exposure Answer: state of being subject to a passible loss Q: what does it mean to be defineable Answer: definite as to time, cause and location Q: what does it mean to be measurable Answer: companies will state how much they will pay for a covered loss Q: is loss due to war covered Answer: no Q: can accidental be self inflicted Answer: no Q: why do mutual companies, but not stock insurance companies, issue participating policies Answer: mutual companies-ownership is represented by the policy, stock is in the stock. mutual companies issue "participating policies" which pay policy dividends to policy owners mutual is tax free, stock is taxed Q: what are medical care service providers Answer: blend characteristics of commercial insurance companies and medical providers (HMO AND BLUE CROSS BLUE SHIELD) Q: WHAT ARE FRATERNAL BENEFIT SOCIEITIES Answer: people who share common affiliation, no capital stock, no profit just to benefit members, operate on a lodge system, representative form of government Q: what are industrial home insureres Answer: stock or mutual, distribute a class of insurance called "burial insurance" offers individual coverage at a small face amounts (>10,000), no medical exam required just a questionnaire Q: what are self insurers Answer: organization insures itself, pays for losses with own money Q: what are risk retention groups Answer: self insurers who want to share the task of running a self insurer group, gives companies infostructure support to self insure their risks Q: what are surplus line insureres Answer: not an insurance company or product but a market for insurance that is not available through any admitted companies in that state Q: what are reinsurance companies Answer: formal agreement which both he risk and premium are shared with one or more insurance companies Q: whats the difference between and admitted and non-admitted insurer Answer: admitted companies hold a certificate of authority in the state is sells insurance Q: whats the difference between a domestic, foreign, and alien insurance company Answer: domestic: admitted company is a domestic state foreign: is what is considered in other states alien: insurance company out of the states Q: what is the difference between a career or captive agency distribution system and an independent agency system Answer: career or captive sell for one insurance exclusively, independent can sell for all companies Q: what is the role of the insurance underwriting department Answer: evaluate completed insurance policies to determine the applicant level of risk and appropriate rates Q: what are the major federal and state social insurance programs, and what basic insurancelike protection does each provide Answer: federal- SSI and Medicare state- worker comp and unemployment, and Medicaid provides a limited amount of protection to those who qualify Q: describe insurer financial status Answer: financial strength and claims paying ability graded from A-D Q: what does it mean by the statement a producer has a fiduciary responsibility to both the customer are insurer Answer: