Master the Fundamentals of Insurance

1. Insurance spreads economic losses over a large number of people, defers them, reduces them, and is met through savings accumulated on an assessment basis.
2. The official who calculates life insurance premium rates is an actuary.
3. Life insurance is a cooperative risk-sharing plan.
4. A father who enters into a life insurance contract on behalf of his child is the applicant-owner.
5. Premiums for other modes of payment are calculated by dividing or multiplying the annual premium by a conversion factor.
6. The agent must know the applicant's age, choice of plan, and face amount desired to calculate premiums.
7. A fixed amount added to the premium of a policy is an extra premium.
8. A single premium policy means only one premium payment is required.
9. An agent must put all relevant information in their Agent's Confidential Report.
10. The source of confidential medical information on applicants is the Medical Information Bureau.
11. An applicant who has been confined to a hospital must provide the name of their attending doctor, diagnosis, and date of confinement.
12. A hazardous occupation exposes the insured to a degree of danger of sustaining injury or illness.
13. A risk is considered substandard based on death, occupation, and moral character, among other criteria.
14. Risks in insurance are classified as standard, substandard, and declined.
15. Insurance companies have various sources of information about the insured, including the application form, medical information bureau, and inspection report.
16. An applicant must disclose every fact in their knowledge that is material to the insurance.

Test your knowledge on the fundamentals of insurance with this informative quiz! From the roles of agents and actuaries to the different types of policies and premiums, this quiz covers it all. With keywords such as life insurance, risk-sharing, premiums, and medical information bureau, you'll gain a deeper understanding of the industry and its important practices. Whether you're an insurance professional or simply interested in learning more about the subject, this quiz is sure to challenge and educate you.