Moral
For the purpose of insurance, what is risk?
Underwriting
Adverse selection
Hazards
What are the four elements of an insurance contract?
Unilateral contract
When the insurance application is submitted.
Mutual Insurer
An insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what type of insurer did the insured purchase the policy?
Foreign
Loss
Insurance
What do individuals use to transfer their risk of loss to a larger group?
What are the three types of hazards?
Certificate of Authority
What document is required for an insurance company to transact insurance?
Foreign
Insurers are classified according to their domicile. What are the three types of insurers?
Law of large numbers
What law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?
Mutual Company
Premium
Stockholders
At the time of loss
Certificate of Authority
Reasonable expectations
Stock company
Peril
When would a misrepresentation on an insurance application be considered fraud?
Insurance