New Mexico life and accident health and exam
questions with verified detailed answers
What is Risk?
The chance of something bad happening.
What is a Peril?
The thing that causes the bad event.
What are the 3 types of hazards?
Physical, Moral, and Morale.
How does insurance help people? It transfers big risks to an insurer.
What is the purpose of underwriting?
To evaluate risk and decide eligibility for insurance.
What is the Medical Information Bureau (MIB)?
A group that collects health info to prevent fraud.
What happens if you lie on an application?
Your policy might be canceled, or claims denied.
What is HIPAA’s main role?
Protects private health information.
What is a Beneficiary?
The person who gets the money from the policy.
What does Insurable Interest mean?
You must have a valid reason to insure someone.
Why do people buy life insurance?
To help their family pay for expenses, debts, or future needs
, Who is the Policyowner?
The person who controls and pays for the insurance.
What is Term Life Insurance?
Insurance for a set period with no savings.
What is Whole Life Insurance?
Permanent insurance with cash value savings.
What is Universal Life Insurance?
Flexible premiums and benefits.
What is a Life Insurance Rider?
An add-on for extra benAn extra feature you can add to your life insuranceefits or coverage.
What Does the Waiver of Premium Rider Do?
Stops premiums if you're disabled.
What is an Accidental Death Benefit Rider?
Pays extra if you die in an accident.
Why Add a Long-Term Care Rider?
Helps pay for care when you can't do daily activities.
: What is a Life Insurance Rider?
An add-on for extra benefits or coverage.
What does the Waiver of Premium Rider do?
Stops premium payments if you're disabled.
What is an Accidental Death Benefit Rider?
Pays extra if you die in an accident.
What does the Long-Term Care Rider cover?
Costs of nursing home or in-home care.
What is a Lump Sum Settlement Option?
Money is given all at once to beneficiaries.
questions with verified detailed answers
What is Risk?
The chance of something bad happening.
What is a Peril?
The thing that causes the bad event.
What are the 3 types of hazards?
Physical, Moral, and Morale.
How does insurance help people? It transfers big risks to an insurer.
What is the purpose of underwriting?
To evaluate risk and decide eligibility for insurance.
What is the Medical Information Bureau (MIB)?
A group that collects health info to prevent fraud.
What happens if you lie on an application?
Your policy might be canceled, or claims denied.
What is HIPAA’s main role?
Protects private health information.
What is a Beneficiary?
The person who gets the money from the policy.
What does Insurable Interest mean?
You must have a valid reason to insure someone.
Why do people buy life insurance?
To help their family pay for expenses, debts, or future needs
, Who is the Policyowner?
The person who controls and pays for the insurance.
What is Term Life Insurance?
Insurance for a set period with no savings.
What is Whole Life Insurance?
Permanent insurance with cash value savings.
What is Universal Life Insurance?
Flexible premiums and benefits.
What is a Life Insurance Rider?
An add-on for extra benAn extra feature you can add to your life insuranceefits or coverage.
What Does the Waiver of Premium Rider Do?
Stops premiums if you're disabled.
What is an Accidental Death Benefit Rider?
Pays extra if you die in an accident.
Why Add a Long-Term Care Rider?
Helps pay for care when you can't do daily activities.
: What is a Life Insurance Rider?
An add-on for extra benefits or coverage.
What does the Waiver of Premium Rider do?
Stops premium payments if you're disabled.
What is an Accidental Death Benefit Rider?
Pays extra if you die in an accident.
What does the Long-Term Care Rider cover?
Costs of nursing home or in-home care.
What is a Lump Sum Settlement Option?
Money is given all at once to beneficiaries.
