3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS A ,B, C &
D ACTUAL EXAM COMPLETE 900 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Risk and Loss
through insurance, an individual/group can transfer the financial risk associated
with potential loss to an insurance company ("insurer")
the insurer promises to pay a stated amount if a specified loss occurs
risk
chance of loss
pure risk: only the possibility of loss
- no chance of gain with a pure risk
- only pure risks are inusrable
- ex) untimely death & serious illness/disability
speculative risk: result in either loss or gain
- ex) gambling and investing in the stock market
- because they include a chance of gain, speculative risks are not insurable
/ 1/530
,3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
loss
unplanned reduction in economic value
direct loss: immediate result of an event involving an
insured peril indirect loss: loss that results from direct
loss
/ 2/530
,3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
loss exposure and exposure units
loss exposure: being subject to a possible loss
the amount of loss exposure facing an insurer has a direct bearing on the
premium it charges for a policy
loss exposure measured by the number of exposure units assigned to the
insured by the insurer during the underwriting process
- risk (and premium) associated with any insurance policy based on number
of exposure units assigned (exposure units are the basis for each applicant's
premium)
ex)
During their working years, coal miners are generally exposed to a greater
risk of death, accidents, and serious illness than insurance agents and
brokers. Thus, life and health insurers assign more exposure units to coal
miners than they do to insurance producers. All other factors being equal,
this translates into a higher premium for coal miners than insurance
producers
/ 3/530
, 3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
peril and hazard
peril: direct cause of a loss and the event that insurance protects against
- life and health insurance covered perils include: death, disability, and sickness
hazard: condition that increases the chance of loss due to a peril or increases
the severity of a loss
- ex) smoking, poor diet, and excessive alcohol consumption are health
hazards that increase the likelihood of illness or early death
- 3 categories:
(1) moral hazards: character weaknesses, habits, and risky activities that
increase possibility of loss
- underwriters look for clues that suggest the applicants lifestyle could result
in a loss (DUI convictions for drinking and driving, excessive alcohol
consumption, smoking, and reckless drug use)
-conscious willingness to defraud insurers [lying on an application or claim
form and adverse selection (tendency of someone at a high risk of loss to try to
buy insurance) are considered moral hazard]
(2) morale hazards: state of mind or attitudes that create an indifference to loss
- ex) disregarding one's health (being overweight or inactive), driving
recklessly, and less careful
(3) physical hazards: physical conditions that increase chance of loss
- ex) working in dangerous conditions (coal mining or heavy construction)
and engaging in dangerous activities (rock climbing)
- ex) chronic diseases (diabetes and emphysema) that increases chance of death
- as a means of identifying physical hazards, insurers require life and health
insurance applicants to answer the questions about their work and
personal activities (and undergo medical exams as part of the
application process)
/ 4/530
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS A ,B, C &
D ACTUAL EXAM COMPLETE 900 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Risk and Loss
through insurance, an individual/group can transfer the financial risk associated
with potential loss to an insurance company ("insurer")
the insurer promises to pay a stated amount if a specified loss occurs
risk
chance of loss
pure risk: only the possibility of loss
- no chance of gain with a pure risk
- only pure risks are inusrable
- ex) untimely death & serious illness/disability
speculative risk: result in either loss or gain
- ex) gambling and investing in the stock market
- because they include a chance of gain, speculative risks are not insurable
/ 1/530
,3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
loss
unplanned reduction in economic value
direct loss: immediate result of an event involving an
insured peril indirect loss: loss that results from direct
loss
/ 2/530
,3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
loss exposure and exposure units
loss exposure: being subject to a possible loss
the amount of loss exposure facing an insurer has a direct bearing on the
premium it charges for a policy
loss exposure measured by the number of exposure units assigned to the
insured by the insurer during the underwriting process
- risk (and premium) associated with any insurance policy based on number
of exposure units assigned (exposure units are the basis for each applicant's
premium)
ex)
During their working years, coal miners are generally exposed to a greater
risk of death, accidents, and serious illness than insurance agents and
brokers. Thus, life and health insurers assign more exposure units to coal
miners than they do to insurance producers. All other factors being equal,
this translates into a higher premium for coal miners than insurance
producers
/ 3/530
, 3/2/26, 11:38 PM TX General Lines- Life, Accident, and Health Exam
peril and hazard
peril: direct cause of a loss and the event that insurance protects against
- life and health insurance covered perils include: death, disability, and sickness
hazard: condition that increases the chance of loss due to a peril or increases
the severity of a loss
- ex) smoking, poor diet, and excessive alcohol consumption are health
hazards that increase the likelihood of illness or early death
- 3 categories:
(1) moral hazards: character weaknesses, habits, and risky activities that
increase possibility of loss
- underwriters look for clues that suggest the applicants lifestyle could result
in a loss (DUI convictions for drinking and driving, excessive alcohol
consumption, smoking, and reckless drug use)
-conscious willingness to defraud insurers [lying on an application or claim
form and adverse selection (tendency of someone at a high risk of loss to try to
buy insurance) are considered moral hazard]
(2) morale hazards: state of mind or attitudes that create an indifference to loss
- ex) disregarding one's health (being overweight or inactive), driving
recklessly, and less careful
(3) physical hazards: physical conditions that increase chance of loss
- ex) working in dangerous conditions (coal mining or heavy construction)
and engaging in dangerous activities (rock climbing)
- ex) chronic diseases (diabetes and emphysema) that increases chance of death
- as a means of identifying physical hazards, insurers require life and health
insurance applicants to answer the questions about their work and
personal activities (and undergo medical exams as part of the
application process)
/ 4/530
