Michigan Credit Insurance Study guides, Class notes & Summaries

Definition of Insurance ️ "A social device for transferring risk through an accumulation of funds" Policy ️ A contract with the insurance company (insurer) that states what the policyowner (insured) must pay for and what they agree to cover if damage or loss occurs. Premium ️ A set amount that must be paid for a Policy. Concept of Risk ️ Risk evolves from uncertainty - the unpredictable chance occurrences of everyday life, which result in financial or economic loss. Life insur...

Producer ️ licensed person who has the authority to sell, solicit, or negotiate insurance contracts Who has permission to cancel the license? ️ the commissioner Agent ️ person or corporation authorized to solicit insurance, collect premiums & transact insurance business on behalf of an insurance company Producer is appointed by who ️ appointed by the agent to represent the insurer & an insurer can cancel the appointment of agent DIFS ️ Dept of Insurance and Financial Services, ...

Credit Life Insurance ️ Insurance that is issued on the life of the debtor pursuant to or in connection with a specific loan or other credit transaction Credit accident and health insurance ️ insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. Creditor ️ the lender of money or vendor of lessor goods Debtor ️ A borrower of money or a purchaser or Lessee of goods for...

Definintion of Insurance Correct Answer: "A social device for transferring risk through an accumulation of funds" Policy Correct Answer: A contract with the insurance company (insurer) that states what the policyowner (insured) must pay for and what they agree to cover if damage or loss occurs. Premium Correct Answer: A set amount that must be paid for a Policy. Concept of Risk Correct Answer: Risk evolves from uncertainty - the unpredictable chance occurrences of everyday life, whi...

Michigan Credit Insurance Study Guide Rated A+ Definintion of Insurance "A social device for transferring risk through an accumulation of funds" Policy A contract with the insurance company (insurer) that states what the policyowner (insured) must pay for and what they agree to cover if damage or loss occurs. Premium A set amount that must be paid for a Policy. Concept of Risk Risk evolves from uncertainty - the unpredictable chance occurrences of everyday life, which result ...

MICHIGAN CREDIT INSURANCE STUDY GUIDE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+MICHIGAN CREDIT INSURANCE STUDY GUIDE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

Michigan Credit Insurance Test with correct solutions. Insurance - correct answers.Practice/Arrangement where a comp./govt. agency gives a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. "transfers risks" doesn't eliminate Law of Large numbers - correct # of similar risk exposures increases the accuracy of insurers loss projection increases Pooling of risk - correct ng of losses on some fair basis by all members o...