3/21/26, 2:45 PM Life and Health Insurance Exam 1
Life and Health Insurance Exam 1 \ Most Recent Exam Actual
Complete Real Exam Questions And Correct Answers (Verified
Answers) Already Graded A+ || Guaranteed Success!! Newest
Exam | Just Released!!2026 -2027
The term used to describe the individual who is covered by the insurance is
A. insurer
B. insured
C. policyowner
D. risk
B
Which of the following is a risk?
A. A car may need to have new brakes installed after several years of regular
driving.
B. An individual may need medical attention after slipping on the ice and falling.
C. Both are examples of risk.
D. Neither is an example of risk.
B
The estimation of future losses is more accurate when information is from
A. a small select group
B. a large group
C. a medium-sized group
D. any size group; group size does not matter
A
1/41
,3/21/26, 2:45 PM Life and Health Insurance Exam 1
Which of the following risks is most likely
to be insurable?
A. George is concerned about the financial impact his premature death would
have on his family.
B. Talyn is concerned about the financial impact large betting losses at the
horse track will have on his retirement savings.
C. John is concerned about the financial impact on his savings when his car
eventually becomes worn enough to need to be replaced.
D. Jewel is concerned about the nancial effect losing her hat would have on
her weekly spending money.
A
Roger refuses to travel by airplane. Roger is managing the risk of being in a
plane crash by
A. reduction
B. avoidance
C. transference
D. retention
B
2/41
,3/21/26, 2:45 PM Life and Health Insurance Exam 1
Chianna becomes injured in a car accident caused when she took her eyes off
the road to answer her cell phone. This is an example of
A. a physical hazard
B. a moral hazard
C. a morale hazard
D. a legal hazard
C
An arrangement in which an insurer transfers part of the insurance risk to
another insurance company is known as
A. avoidance
B. fraud
C. Lloyd's associations
D. reinsurance
D
Which of the following is NOT an example of insurable interest?
A. Jose wishes to take out a life insurance policy on his own life to provide for
his family in the event of his death.
B. Ana wishes to take out a life insurance policy on her mother to ensure
that funeral costs will be covered when the time comes.
C. Juan wishes to take out a life insurance policy on his neighbor because his
neighbor is a careless driver and Juan thinks his neighbor is likely to die in a
car accident.
D. Carla wishes to take out a life insurance policy on her best salesperson to
protect the business from lost sales in the event of the salesperson's death.
C
3/41
, 3/21/26, 2:45 PM Life and Health Insurance Exam 1
Kim is injured in a house fire. When the bills come, the insurance company pays
80% of the cost, and Kim pays the rest. This is an example of
A. coinsurance
B. a deductible
C. extraneous insurance
D. D. policy limits
A
Hoosier Insurance Company is owned by the policyholders. Hoosier Insurance is
A. a stock insurer
B. a mutual insurer
C. C. a nonpro t insurer
D. D. a fraternal insurer
B
Which of the following people represents several insurance companies but
owns the policy expirations?
A. Independent agent
B. Exclusive agent
C. Direct writing agent
D. General agent
A
Which of the following can bind an insurance company by oral or written
agreement?
A. Property and casualty producer
B. Life producer
C. Broker
D. Solicitor
A
4/41
Life and Health Insurance Exam 1 \ Most Recent Exam Actual
Complete Real Exam Questions And Correct Answers (Verified
Answers) Already Graded A+ || Guaranteed Success!! Newest
Exam | Just Released!!2026 -2027
The term used to describe the individual who is covered by the insurance is
A. insurer
B. insured
C. policyowner
D. risk
B
Which of the following is a risk?
A. A car may need to have new brakes installed after several years of regular
driving.
B. An individual may need medical attention after slipping on the ice and falling.
C. Both are examples of risk.
D. Neither is an example of risk.
B
The estimation of future losses is more accurate when information is from
A. a small select group
B. a large group
C. a medium-sized group
D. any size group; group size does not matter
A
1/41
,3/21/26, 2:45 PM Life and Health Insurance Exam 1
Which of the following risks is most likely
to be insurable?
A. George is concerned about the financial impact his premature death would
have on his family.
B. Talyn is concerned about the financial impact large betting losses at the
horse track will have on his retirement savings.
C. John is concerned about the financial impact on his savings when his car
eventually becomes worn enough to need to be replaced.
D. Jewel is concerned about the nancial effect losing her hat would have on
her weekly spending money.
A
Roger refuses to travel by airplane. Roger is managing the risk of being in a
plane crash by
A. reduction
B. avoidance
C. transference
D. retention
B
2/41
,3/21/26, 2:45 PM Life and Health Insurance Exam 1
Chianna becomes injured in a car accident caused when she took her eyes off
the road to answer her cell phone. This is an example of
A. a physical hazard
B. a moral hazard
C. a morale hazard
D. a legal hazard
C
An arrangement in which an insurer transfers part of the insurance risk to
another insurance company is known as
A. avoidance
B. fraud
C. Lloyd's associations
D. reinsurance
D
Which of the following is NOT an example of insurable interest?
A. Jose wishes to take out a life insurance policy on his own life to provide for
his family in the event of his death.
B. Ana wishes to take out a life insurance policy on her mother to ensure
that funeral costs will be covered when the time comes.
C. Juan wishes to take out a life insurance policy on his neighbor because his
neighbor is a careless driver and Juan thinks his neighbor is likely to die in a
car accident.
D. Carla wishes to take out a life insurance policy on her best salesperson to
protect the business from lost sales in the event of the salesperson's death.
C
3/41
, 3/21/26, 2:45 PM Life and Health Insurance Exam 1
Kim is injured in a house fire. When the bills come, the insurance company pays
80% of the cost, and Kim pays the rest. This is an example of
A. coinsurance
B. a deductible
C. extraneous insurance
D. D. policy limits
A
Hoosier Insurance Company is owned by the policyholders. Hoosier Insurance is
A. a stock insurer
B. a mutual insurer
C. C. a nonpro t insurer
D. D. a fraternal insurer
B
Which of the following people represents several insurance companies but
owns the policy expirations?
A. Independent agent
B. Exclusive agent
C. Direct writing agent
D. General agent
A
Which of the following can bind an insurance company by oral or written
agreement?
A. Property and casualty producer
B. Life producer
C. Broker
D. Solicitor
A
4/41
