NEBRASKA LIFE AND HEALTH
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
What is Insurance? - ANS a contract in which 1 party (insurance company) agrees to
indemnify (make whole) the insured party against loss, damage, or a liability arising from an
unknown event.
What is life insurance? - ANS a policy that protects survivors from losses suffered after an
insured's death
What does insurance do? - ANS transfers the risk of loss from an individual or business entity
to an insurance company which spreads out costs of unexpected losses to many individuals
What is risk? - ANS uncertainty or chance of a loss occurring
Pure risk - ANS refers to sutuations that can only result in a loss or no change, no opportunity
for financial gain
What type of risk do insurance companies accept? - ANS pure risk
Speculative risk - ANS involves opportunity for loss or gain
Hazard - ANS conditions or situation that increase probability of an insured loss occurring
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, Physical hazard - ANS individual characteristics that increase the chances of the cause of loss
Example of a physical hazard - ANS past medical history, existing conditions, (blindness)
Moral hazard - ANS tendencise towards increased risk. moral hazards inclove evaluating
character of insured
example of moral hazard - ANS applicants who may lie on an application for insurance or in
the past have submitted fraudulent claims against an insurer
Morale hazard - ANS similar to moral hazards, except that they arise from a state of mind
that causes indifference to loss, such as carelessness
example of morale hazard - ANS actions taken without forethought may cause physical
injuries
Peril - ANS perils are causes of loss insured against in an insurance policy
Life Insurance - ANS insures against the financial loss caused by the premature death of the
insured
Health Insurance - ANS insures against mediacal expenses and/or loss of income caused by
the insured's sickness or accidental injury
Property Insurance - ANS insures against the loss and/or damage of property and resulting in
liabilities
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
What is Insurance? - ANS a contract in which 1 party (insurance company) agrees to
indemnify (make whole) the insured party against loss, damage, or a liability arising from an
unknown event.
What is life insurance? - ANS a policy that protects survivors from losses suffered after an
insured's death
What does insurance do? - ANS transfers the risk of loss from an individual or business entity
to an insurance company which spreads out costs of unexpected losses to many individuals
What is risk? - ANS uncertainty or chance of a loss occurring
Pure risk - ANS refers to sutuations that can only result in a loss or no change, no opportunity
for financial gain
What type of risk do insurance companies accept? - ANS pure risk
Speculative risk - ANS involves opportunity for loss or gain
Hazard - ANS conditions or situation that increase probability of an insured loss occurring
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, Physical hazard - ANS individual characteristics that increase the chances of the cause of loss
Example of a physical hazard - ANS past medical history, existing conditions, (blindness)
Moral hazard - ANS tendencise towards increased risk. moral hazards inclove evaluating
character of insured
example of moral hazard - ANS applicants who may lie on an application for insurance or in
the past have submitted fraudulent claims against an insurer
Morale hazard - ANS similar to moral hazards, except that they arise from a state of mind
that causes indifference to loss, such as carelessness
example of morale hazard - ANS actions taken without forethought may cause physical
injuries
Peril - ANS perils are causes of loss insured against in an insurance policy
Life Insurance - ANS insures against the financial loss caused by the premature death of the
insured
Health Insurance - ANS insures against mediacal expenses and/or loss of income caused by
the insured's sickness or accidental injury
Property Insurance - ANS insures against the loss and/or damage of property and resulting in
liabilities
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
