Alabama Life & Health Insurance Exam
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a predetermined limit.- ANSWER- Insurance is a method risk is transferred to an
insurer for consideration up to
1. spouses in each other
2. parents in their children
3. creditors in their debtors- ANSWER- Which of the following would be considered
proper establishment of insurable interest in the life insurance area?
It is called the mortality rate- ANSWER- Which of the following statements about the
average number of people who die each year is true?
,Equal value is not necessarily given by both parties to the contract- ANSWER- An
insurance contract is an aleatory contract. This means:
Only the insurance company is bound to live up to its side of the agreement- ANSWER-
A life insurance policy is a unilateral contract because:
1. Legal purpose
2. Offer and acceptance
3. Consideration- ANSWER- All of the following are elements of a contract
Unauthorized company- ANSWER- A company that has not received permission from
an Insurance Commissioner to do business in his or her state is called a/an:
A written or oral statement which is false- ANSWER- Misrepresentation is:
Adverse Selection- ANSWER- The chance that a person who anticipates a loss will
purchase insurance is:
Assumption of risk- ANSWER- Assuming a deductible with your insurance policy is
which type of risk management technique?
Morbidity tables- ANSWER- In the Health-Disability area we use what type data to
produce rates?
An authorized company- ANSWER- A company that is licensed to sell insurance in a
particular state is:
To have the applicant pay the initial premium at the time of application- ANSWER- he
most effective way to ensure that the applicant will accept the policy when it is issued is:
A mutual insurance company- ANSWER- Which is the proper term for a company
owned by its policy owner?
Fines, imprisonment or both- ANSWER- The punishment for fraud or making false
statements may include:
Always the insurer- ANSWER- A producer who is acting as an agent is representing:
consideration- ANSWER- The premium paid and the statements on the application to
the insurance company is called
the policy owner must expect to suffer a loss if the insured dies.- ANSWER- In life
insurance the insurable interest requirements is generally satisfied if:
1. Statements relied upon by a second party who then suffers a loss
, 2. Intent to gain advantage
3. An intentional misrepresentation made by the applicant- ANSWER- Each of the
following would be an element in the definition of fraud
The uncertainty of loss- ANSWER- Risk may be defined as:
prove this was both intentional and material- ANSWER- A father did not reveal that his
daughter suffers from asthma on the application for a health policy. In order to avoid
paying a claim the insurer must
competent parties- ANSWER- In order to be valid, a contract must be between
individuals considered legally able to enter into an agreement. This principle is known
as:
Making a formal request to the company for an insurance policy.- ANSWER- When
signing the application form, the proposed insured is:
The policy, its endorsements, and any attached papers- ANSWER- What constitutes an
entire insurance contract?
True- ANSWER- T/F Misrepresentations on the part of an applicant as to the health or
other conditions of the applicant must be deliberate and material for an insurer to avoid
coverage.
True- ANSWER- T/F Misrepresentation is a deliberate false representation on the part
of the agent or insurer as to the terms and conditions of the policy its terms and
benefits.
True- ANSWER- T/F Warranties are not used in the life-health-disability area.
generally presents no possibility of financial gain.- ANSWER- A pure risk
The possibility the painting you bought might be a long lost masterpiece- ANSWER-
Which of the following would be considered a speculative risk?
The principle of life insurance- ANSWER- To what does the statement spreading the
result of financial loss created by an individual's death among many persons, so the
cost for each individual is small refer?
A producer is never permitted to make a change in policy wording- ANSWER- Select
the correct statement.
Both the insured and the insurer- ANSWER- The policy conditions represent the
obligations of:
Test Bank 1 Newest Actual Exam With
Complete Questions And Correct
Detailed Answers (Verified Answers)
|Already Graded A+
a predetermined limit.- ANSWER- Insurance is a method risk is transferred to an
insurer for consideration up to
1. spouses in each other
2. parents in their children
3. creditors in their debtors- ANSWER- Which of the following would be considered
proper establishment of insurable interest in the life insurance area?
It is called the mortality rate- ANSWER- Which of the following statements about the
average number of people who die each year is true?
,Equal value is not necessarily given by both parties to the contract- ANSWER- An
insurance contract is an aleatory contract. This means:
Only the insurance company is bound to live up to its side of the agreement- ANSWER-
A life insurance policy is a unilateral contract because:
1. Legal purpose
2. Offer and acceptance
3. Consideration- ANSWER- All of the following are elements of a contract
Unauthorized company- ANSWER- A company that has not received permission from
an Insurance Commissioner to do business in his or her state is called a/an:
A written or oral statement which is false- ANSWER- Misrepresentation is:
Adverse Selection- ANSWER- The chance that a person who anticipates a loss will
purchase insurance is:
Assumption of risk- ANSWER- Assuming a deductible with your insurance policy is
which type of risk management technique?
Morbidity tables- ANSWER- In the Health-Disability area we use what type data to
produce rates?
An authorized company- ANSWER- A company that is licensed to sell insurance in a
particular state is:
To have the applicant pay the initial premium at the time of application- ANSWER- he
most effective way to ensure that the applicant will accept the policy when it is issued is:
A mutual insurance company- ANSWER- Which is the proper term for a company
owned by its policy owner?
Fines, imprisonment or both- ANSWER- The punishment for fraud or making false
statements may include:
Always the insurer- ANSWER- A producer who is acting as an agent is representing:
consideration- ANSWER- The premium paid and the statements on the application to
the insurance company is called
the policy owner must expect to suffer a loss if the insured dies.- ANSWER- In life
insurance the insurable interest requirements is generally satisfied if:
1. Statements relied upon by a second party who then suffers a loss
, 2. Intent to gain advantage
3. An intentional misrepresentation made by the applicant- ANSWER- Each of the
following would be an element in the definition of fraud
The uncertainty of loss- ANSWER- Risk may be defined as:
prove this was both intentional and material- ANSWER- A father did not reveal that his
daughter suffers from asthma on the application for a health policy. In order to avoid
paying a claim the insurer must
competent parties- ANSWER- In order to be valid, a contract must be between
individuals considered legally able to enter into an agreement. This principle is known
as:
Making a formal request to the company for an insurance policy.- ANSWER- When
signing the application form, the proposed insured is:
The policy, its endorsements, and any attached papers- ANSWER- What constitutes an
entire insurance contract?
True- ANSWER- T/F Misrepresentations on the part of an applicant as to the health or
other conditions of the applicant must be deliberate and material for an insurer to avoid
coverage.
True- ANSWER- T/F Misrepresentation is a deliberate false representation on the part
of the agent or insurer as to the terms and conditions of the policy its terms and
benefits.
True- ANSWER- T/F Warranties are not used in the life-health-disability area.
generally presents no possibility of financial gain.- ANSWER- A pure risk
The possibility the painting you bought might be a long lost masterpiece- ANSWER-
Which of the following would be considered a speculative risk?
The principle of life insurance- ANSWER- To what does the statement spreading the
result of financial loss created by an individual's death among many persons, so the
cost for each individual is small refer?
A producer is never permitted to make a change in policy wording- ANSWER- Select
the correct statement.
Both the insured and the insurer- ANSWER- The policy conditions represent the
obligations of:
