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Oklahoma Insurance Exam 1.Life Insurance: Transfers to a life insurance company the risk of financial loss to an insurance company.
2.Health Insurance: transfers to a health insurance policy the risk of financial loss resulting from illness, injury, disability of an insured person.
3.Risk: Chance of loss: only pure risk is insurable.
4.Loss: Unplanned reduction in economic value.
5.hazard: a condition that increases the chance of a peril/setback/danger.
6.Risk Transfer: Risk management role played by insurance.
7.Underwriting: Assessing an applicant to determine insurability.
8.Law of Large Numbers: Mathematical principle of probability underlying insur-
ance.
9.Mutual Companies: owned by policy owners
participating policies which pay policy dividends to their policy owners may sell life/health insurance
10.Stock Companies: DO NOT issue participating policies
Pay stock dividends to stockholders 1 / 4
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Sell health/life
11.Home Service Companies: issues industrial life insurance in small amounts
12.Ordinary Life Insurance: Life insurance issued in face amounts of greater than 25k
13.Medical Care Service Providers: blend features of insurance companies and
medical care providers.
14.Federal and State Government Insurance Programs: Medicare
Social Security Medicaid 15.Admitted vs. Non-admitted: Refers to whether or not an insurer is approved or authorized to write business in this State.Certificate of Authority
16.Insurance Providers: Mutual Companies
Stock Companies Home Service Companies Ordinary Life Insurance Medical Care Service Providers Federal and State Government Programs Admitted vs Non-Admitted 2 / 4
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17.Insurance Producers: Producers
Producers Authority Cost Indexes Required Disclosures 3 / 4
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18.Producers 1: Must act in Good Faith and integrity in their dealings with both customers and Insurers.
19.Producers Authority: 1. Express Authority: Defined in contract with insurer
2.Implied Authority: Understood to be a part of the job
3.Apparent Authority: Producer allows to exist, but not approved by insurer
20.Cost Indexes: 1. L ins surrender cost index (future cash value withdrawal)
- L ins Net Payment Cost Index (no cash value withdrawal)
21.Required Disclosures: Buyers Guide explains the general features, benefits
and conditions of the type of ins being considered.
22.Loss Must be:: 1. Defineable: time, place, location
2.Measurable: financial setback of the loss
3.Results from a peril: our of the insured's control
4.Part of a large group:
23.Risk Management involves:: 1. Risk 2.Loss 3.Peril 4.Hazard
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