Life insurance

Insurance is the ____ of risk.

What is risk?

• Danger.

• Chance that a loss will occur.

• A safe outcome isn’t promised.

• Something guaranteed to occur.

As the number of people in a risk pool​ _______, future loss become more​ predictable.

• Increases

• Decreases

• Have the same circumstances

Insurers must obtain what before transacting business in this state?

• Certificate of Financial Literacy

• Certificate of Insurance

• Certificate of Authority

A _____ refers to the location where an insurer is incorporated.

What is Insurer’s Consideration?

• The promise to pay for losses.

• Decreasing monthly payments for the insured’s convenience.

• The premium & statements on the application.

• The company being nice to the agents.

What is Indemnity?

• Insureds cannot recover more than their loss.

• Beneficiaries get more assistance than what the insured contributed.

Insurers _____ advertise protection by the Insurance Guaranty Association.

• Can

• Cannot

______ must exist at time of application.

• No prior medical history.

• Insurance interest.

• Insurable interest.

• Proper contracts.

______ provides lifetime {permanent} protection & accumulates cash value.

• Life insurance

• Insurance

• Group insurance

• Whole life insurance