Oklahoma Insurance Producer Test Prep-Life Health and Accident-Intro to Insurance

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Author:
hicksmix6
ID:
305913
Filename:
Oklahoma Insurance Producer Test Prep-Life Health and Accident-Intro to Insurance
Updated:
2015-08-04 12:51:22
Tags:
Oklahoma Life Producer Health accident
Folders:
insurance
Description:
Practice Test Questions page L-3
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  1. Certain elements are necessary for a particular risk to be insurable.  Which of the following would make a risk uninsurable?
    a. the risk of loss can be measured in dollars
    b. the risk is of a catastrophic nature
    c. the risk can be predicted because of the large number of people exposed 
    d. the risk is of exposure of an accidental nature
    b. the risk is of a catastrophic nature
  2. All of the following statements are true regarding an actuary EXCEPT?
    a. They select risk
    b. They are mathematicians
    c. They work for the insurer
    d. They establish rates
    a. They select risk
  3. Which type of risk management technique is being used when the insured buys and insurance policy?
    a. peril
    b. transfer
    c. avoid
    d. reduce
    b. transfer
  4. If an individual decides to accept the risk associated with a loss and not purchase insurance, they are using what risk managing method? 
    a. avoiding
    b. retaining
    c. transferring
    d. sharing
    b. retaining
  5. Speculative risk involves all the following EXCEPT?
    a. uncertainty of loss
    b. gambling
    c. insurance
    d. chance of gain
    c. insurance
  6. Who selects risk for the insurer?
    a. agent underwriter
    b. actuary
    c. insurance department
    d. home office underwriter
    d. home office underwriter
  7. In life insurance the "insurable interest" must exist:
    a. at the time of application and at the time of loss
    b. at the time of application or at the time of loss
    c. at the time of application only
    d. at the time of loss
    c. at the time of application only

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