Life Insurance Exam NM with verified detailed answers ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Whole Life - correct answer✔✔Builds cash value and remains in effect for the entire life of
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the insured (or until age 100) as long as the premium is paid.
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Types of whole life insurance - correct answer✔✔Continuous (straight), Limited, Single,
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Modified
Insurance is the transfer of: - correct answer✔✔risk ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Insurance is a contract by which one seeks to protect another from - correct answer✔✔Loss ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
In what way can an agent demonstrate a high standard of ethics? - correct
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answer✔✔Putting the client's best interests before their own ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Which of the following is NOT a characteristic of an insurable risk? - correct answer✔✔The
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loss must be catastrophic.
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For the reported losses of an insured group to become more likely to equal the statistical
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probability of loss for that particular class, the insured group must become - correct ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔larger
Adverse selection is a concept best described as - correct answer✔✔Risks with higher ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
probability of loss seeking insurance more often than other risks. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Which insurance principle states that if a policy allows for greater compensation than the
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financial loss incurred, the insured may only receive benefits for the amount lost? - correct ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Indemnity
Whole Life - correct answer✔✔Builds cash value and remains in effect for the entire life of
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the insured (or until age 100) as long as the premium is paid.
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Types of whole life insurance - correct answer✔✔Continuous (straight), Limited, Single,
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Modified
Insurance is the transfer of: - correct answer✔✔risk ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Insurance is a contract by which one seeks to protect another from - correct answer✔✔Loss ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
In what way can an agent demonstrate a high standard of ethics? - correct
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answer✔✔Putting the client's best interests before their own ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Which of the following is NOT a characteristic of an insurable risk? - correct answer✔✔The
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loss must be catastrophic.
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For the reported losses of an insured group to become more likely to equal the statistical
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probability of loss for that particular class, the insured group must become - correct ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔larger
Adverse selection is a concept best described as - correct answer✔✔Risks with higher ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
probability of loss seeking insurance more often than other risks. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Which insurance principle states that if a policy allows for greater compensation than the
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financial loss incurred, the insured may only receive benefits for the amount lost? - correct ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Indemnity
