Life and Health
Insurance Exam 1
Questions and Answer
Updated 2026
UNITB1:BTheBtermBusedBtoBdescribeBtheBindividualBwhoBisBcoveredBbyBtheBinsuranceBi
s
A.Binsurer
B.Binsured
C.Bpolicyowner
D.BriskB-BAnswerB
WhichBofBtheBfollowingBisBaBrisk?
A.BABcarBmayBneedBtoBhaveBnewBbrakesBinstalledBafterBseveralByearsBofBregularBdrivin
g.
B.BAnBindividualBmayBneedBmedicalBattentionBafterBslippingBonBtheBiceBandBfalling.
C.BBothBareBexamplesBofBrisk.
D.BNeitherBisBanBexampleBofBrisk.B-BAnswerB
TheBestimationBofBfutureBlossesBisBmoreBaccurateBwhenBinformationBisBfrom
A.BaBsmallBselectBgroup
B.BaBlargeBgroup
C.BaBmedium-sizedBgroup
D.BanyBsizeBgroup;BgroupBsizeBdoesBnotBmatterB-BAnswerA
TheBapplicationBofBtheBlawBofBlargeBnumbersBenablesBinsurersBto
A.BestimateBtheBfutureBlossesBofBaBclassBorBgroupBofBpeople
,B.BpredictBtheBfutureBlossesBofBspeciBcBindividuals
C.BchargeBhigherBpremiumsBforBinsurance
D.BcalculateBmortalityBchargesB-BAnswerB
WhichBtypeBofBpolicyBisBdesignedBtoBprotectBagainstBtheBriskBofBlivingBtooBlong?
A.BCasualty
B.BLife
C.BAnnuity
D.BMedicalBexpenseB-BAnswerC
WhichBofBtheBfollowingBisBaBtypeBofBinsuranceBcompanyBownedBbyBitsBshareholders?
A.BMutualBB.BStock
C.BLloyd'sBD.BReinsurerB-BAnswerB
TheBZYXBInsuranceBCompanyBisBincorporatedBinBAlabama.BWhileBdoingBbusinessBinBTex
as,BitBis
A.BadomesticinsurerBB.BaBforeignBinsurerBC.BanBalienBinsurerBD.BanBexportBinsurerB-
BAnswerB
TheBZYXBInsuranceBCompanyBisBincorporatedBinBMexico.BWhileBdoingBbusinessBinBTexas
,BitBis
A.BadomesticinsurerBB.BaBforeignBinsurerBC.BanBalienBinsurerBD.BanBexportBinsurerB-
BAnswerC
Self-insuranceBisBanBexampleBofBwhichBmethodBofBhandlingBrisk?
A.BAcceptanceBB.BTransferenceBC.BAvoidanceBD.BReductionB-BAnswerA
WhichBofBtheBfollowingBtermsBisBusedBtoBdenoteBinsuranceBcompanies?
A.BBroker
,B.BExchangeBC.BCorporationBD.BInsurerB-BAnswerD
ABsocialBdeviceBforBspreadingBtheBchanceBofBfinancialBlossBamongBaBlargeBnumberBofB
peopleBisBtheBdefinitionBof
A.Bhazard
B.Brisk
C.Binsurance
BD.BperilB-BAnswerC
WhichBofBtheBfollowingBrisksBisBmostBlikelyBtoBbe
insurable?
A.BGeorgeBisBconcernedBaboutBtheBfinancialBimpactBhisBprematureBdeathBwouldBhaveB
onBhisBfamily.
B.BTalynBisBconcernedBaboutBtheBfinancialBimpactBlargeBbettingBlossesBatBtheBhorseBtr
ackBwillBhaveBonBhisBretirementBsavings.
C.BJohnBisBconcernedBaboutBtheBfinancialBimpactBonBhisBsavingsBwhenBhisBcarBeventua
llyBbecomesBwornBenoughBtoBneedBtoBbeBreplaced.
D.BJewelBisBconcernedBaboutBtheBnancialBeffectBlosingBherBhatBwouldBhaveBonBherBwe
eklyBspendingBmoney.B-BAnswerA
RogerBrefusesBtoBtravelBbyBairplane.BRogerBisBmanagingBtheBriskBofBbeingBinBaBplaneB
crashBby
A.BreductionBB.BavoidanceBC.BtransferenceBD.BretentionB-BAnswerB
ChiannaBbecomesBinjuredBinBaBcarBaccidentBcausedBwhenBsheBtookBherBeyesBoffBtheBr
oadBtoBanswerBherBcellBphone.BThisBisBanBexampleBof
A.BaBphysicalBhazard
B.BaBmoralBhazard
C.BaBmoraleBhazard
D.BaBlegalBhazardB-BAnswerC
, AnBarrangementBinBwhichBanBinsurerBtransfersBpartBofBtheBinsuranceBriskBtoBanotherBi
nsuranceBcompanyBisBknownBas
A.Bavoidance
B.Bfraud
C.BLloyd'sBassociations
D.BreinsuranceB-BAnswerD
WhichBofBtheBfollowingBisBNOTBanBexampleBofBinsurableBinterest?
A.BJoseBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBhisBownBlifeBtoBprovideBforBhis
BfamilyBinBtheBeventBofBhisBdeath.
B.BAnaBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBherBmotherBtoBensureBthatBfun
eralBcostsBwillBbeBcoveredBwhenBtheBtimeBcomes.
C.BJuanBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBhisBneighborBbecauseBhisBneigh
borBisBaBcarelessBdriverBandBJuanBthinksBhisBneighborBisBlikelyBtoBdieBinBaBcarBacciden
t.
D.BCarlaBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBherBbestBsalespersonBtoBprotec
tBtheBbusinessBfromBlostBsalesBinBtheBeventBofBtheBsalesperson'sBdeath.B-BAnswerC
KimBisBinjuredBinBaBhouseBfire.BWhenBtheBbillsBcome,BtheBinsuranceBcompanyBpaysB80
%BofBtheBcost,BandBKimBpaysBtheBrest.BThisBisBanBexampleBof
A.Bcoinsurance
B.BaBdeductible
C.BextraneousBinsuranceBD.BpolicyBlimitsB-BAnswerA
HoosierBInsuranceBCompanyBisBownedBbyBtheBpolicyholders.BHoosierBInsuranceBis
A.BaBstockBinsurer
B.BaBmutualBinsurerBC.BaBnonproBtBinsurerBD.BaBfraternalBinsurerB-BAnswerB
Insurance Exam 1
Questions and Answer
Updated 2026
UNITB1:BTheBtermBusedBtoBdescribeBtheBindividualBwhoBisBcoveredBbyBtheBinsuranceBi
s
A.Binsurer
B.Binsured
C.Bpolicyowner
D.BriskB-BAnswerB
WhichBofBtheBfollowingBisBaBrisk?
A.BABcarBmayBneedBtoBhaveBnewBbrakesBinstalledBafterBseveralByearsBofBregularBdrivin
g.
B.BAnBindividualBmayBneedBmedicalBattentionBafterBslippingBonBtheBiceBandBfalling.
C.BBothBareBexamplesBofBrisk.
D.BNeitherBisBanBexampleBofBrisk.B-BAnswerB
TheBestimationBofBfutureBlossesBisBmoreBaccurateBwhenBinformationBisBfrom
A.BaBsmallBselectBgroup
B.BaBlargeBgroup
C.BaBmedium-sizedBgroup
D.BanyBsizeBgroup;BgroupBsizeBdoesBnotBmatterB-BAnswerA
TheBapplicationBofBtheBlawBofBlargeBnumbersBenablesBinsurersBto
A.BestimateBtheBfutureBlossesBofBaBclassBorBgroupBofBpeople
,B.BpredictBtheBfutureBlossesBofBspeciBcBindividuals
C.BchargeBhigherBpremiumsBforBinsurance
D.BcalculateBmortalityBchargesB-BAnswerB
WhichBtypeBofBpolicyBisBdesignedBtoBprotectBagainstBtheBriskBofBlivingBtooBlong?
A.BCasualty
B.BLife
C.BAnnuity
D.BMedicalBexpenseB-BAnswerC
WhichBofBtheBfollowingBisBaBtypeBofBinsuranceBcompanyBownedBbyBitsBshareholders?
A.BMutualBB.BStock
C.BLloyd'sBD.BReinsurerB-BAnswerB
TheBZYXBInsuranceBCompanyBisBincorporatedBinBAlabama.BWhileBdoingBbusinessBinBTex
as,BitBis
A.BadomesticinsurerBB.BaBforeignBinsurerBC.BanBalienBinsurerBD.BanBexportBinsurerB-
BAnswerB
TheBZYXBInsuranceBCompanyBisBincorporatedBinBMexico.BWhileBdoingBbusinessBinBTexas
,BitBis
A.BadomesticinsurerBB.BaBforeignBinsurerBC.BanBalienBinsurerBD.BanBexportBinsurerB-
BAnswerC
Self-insuranceBisBanBexampleBofBwhichBmethodBofBhandlingBrisk?
A.BAcceptanceBB.BTransferenceBC.BAvoidanceBD.BReductionB-BAnswerA
WhichBofBtheBfollowingBtermsBisBusedBtoBdenoteBinsuranceBcompanies?
A.BBroker
,B.BExchangeBC.BCorporationBD.BInsurerB-BAnswerD
ABsocialBdeviceBforBspreadingBtheBchanceBofBfinancialBlossBamongBaBlargeBnumberBofB
peopleBisBtheBdefinitionBof
A.Bhazard
B.Brisk
C.Binsurance
BD.BperilB-BAnswerC
WhichBofBtheBfollowingBrisksBisBmostBlikelyBtoBbe
insurable?
A.BGeorgeBisBconcernedBaboutBtheBfinancialBimpactBhisBprematureBdeathBwouldBhaveB
onBhisBfamily.
B.BTalynBisBconcernedBaboutBtheBfinancialBimpactBlargeBbettingBlossesBatBtheBhorseBtr
ackBwillBhaveBonBhisBretirementBsavings.
C.BJohnBisBconcernedBaboutBtheBfinancialBimpactBonBhisBsavingsBwhenBhisBcarBeventua
llyBbecomesBwornBenoughBtoBneedBtoBbeBreplaced.
D.BJewelBisBconcernedBaboutBtheBnancialBeffectBlosingBherBhatBwouldBhaveBonBherBwe
eklyBspendingBmoney.B-BAnswerA
RogerBrefusesBtoBtravelBbyBairplane.BRogerBisBmanagingBtheBriskBofBbeingBinBaBplaneB
crashBby
A.BreductionBB.BavoidanceBC.BtransferenceBD.BretentionB-BAnswerB
ChiannaBbecomesBinjuredBinBaBcarBaccidentBcausedBwhenBsheBtookBherBeyesBoffBtheBr
oadBtoBanswerBherBcellBphone.BThisBisBanBexampleBof
A.BaBphysicalBhazard
B.BaBmoralBhazard
C.BaBmoraleBhazard
D.BaBlegalBhazardB-BAnswerC
, AnBarrangementBinBwhichBanBinsurerBtransfersBpartBofBtheBinsuranceBriskBtoBanotherBi
nsuranceBcompanyBisBknownBas
A.Bavoidance
B.Bfraud
C.BLloyd'sBassociations
D.BreinsuranceB-BAnswerD
WhichBofBtheBfollowingBisBNOTBanBexampleBofBinsurableBinterest?
A.BJoseBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBhisBownBlifeBtoBprovideBforBhis
BfamilyBinBtheBeventBofBhisBdeath.
B.BAnaBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBherBmotherBtoBensureBthatBfun
eralBcostsBwillBbeBcoveredBwhenBtheBtimeBcomes.
C.BJuanBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBhisBneighborBbecauseBhisBneigh
borBisBaBcarelessBdriverBandBJuanBthinksBhisBneighborBisBlikelyBtoBdieBinBaBcarBacciden
t.
D.BCarlaBwishesBtoBtakeBoutBaBlifeBinsuranceBpolicyBonBherBbestBsalespersonBtoBprotec
tBtheBbusinessBfromBlostBsalesBinBtheBeventBofBtheBsalesperson'sBdeath.B-BAnswerC
KimBisBinjuredBinBaBhouseBfire.BWhenBtheBbillsBcome,BtheBinsuranceBcompanyBpaysB80
%BofBtheBcost,BandBKimBpaysBtheBrest.BThisBisBanBexampleBof
A.Bcoinsurance
B.BaBdeductible
C.BextraneousBinsuranceBD.BpolicyBlimitsB-BAnswerA
HoosierBInsuranceBCompanyBisBownedBbyBtheBpolicyholders.BHoosierBInsuranceBis
A.BaBstockBinsurer
B.BaBmutualBinsurerBC.BaBnonproBtBinsurerBD.BaBfraternalBinsurerB-BAnswerB
