Basic Principles of Life and Health Insurance

A set of fill-in-the-blank flashcards covering fundamental insurance principles, regulatory history, insurer classifications, and risk concepts.

The revenue paid out in the form of policy dividends is referred to as the __________.

divisible surplus

An __________ is appointed to handle transactions for the reciprocal insurer.

attorney-in-fact

When a primary insurer seeks reinsurance for a primary exposure without an ongoing agreement, it is referred to as __________ reinsurance.

facultative

An __________ insurer is organized under the laws of a different nation.

alien

In the 1868 case __________, the United States Supreme Court ruled that insurance is not interstate commerce.

Paul v. Virginia

The McCarran-Ferguson Act (1945) is also referred to as Public Law __________.

15

Under Amendments to USC 1033 and 1034, engaging in intentionally unfair or deceptive insurance practices subjects a person to a fine of up to $50,000, license revocation, and up to __________ years in prison.

15

The __________ states that the greater the number of homogeneous loss exposures, the more accurate the prediction of the aggregate risk within an insurance pool.

law of large numbers

An Indirect Loss resulting from a direct loss is also referred to as a __________ Loss.

Consequential

__________ hazards arise from a state of mind that is indifferent or careless to the possibility of loss because of the existence of insurance.

Morale