Nebraska Life and Health Insurance Exam
Questions With Correct Answers
What |is |Insurance? |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-a |policy |that |protects |survivors |from |losses |
suffered |after |an |insured's |death
What |does |insurance |do? |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-uncertainty |or |chance |of |a |loss |occurring
Pure |risk |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-pure |risk
Speculative |risk |- |CORRECT |ANSWER✔✔-involves |opportunity |for |loss |or |gain
Hazard |- |CORRECT |ANSWER✔✔-conditions |or |situation |that |increase |probability |of |an |insured |
loss |occurring
Physical |hazard |- |CORRECT |ANSWER✔✔-individual |characteristics |that |increase |the |chances |of
|the |cause |of |loss
, Example |of |a |physical |hazard |- |CORRECT |ANSWER✔✔-past |medical |history, |existing |conditions,
|(blindness)
Moral |hazard |- |CORRECT |ANSWER✔✔-tendencise |towards |increased |risk. |moral |hazards |
inclove |evaluating |character |of |insured
example |of |moral |hazard |- |CORRECT |ANSWER✔✔-applicants |who |may |lie |on |an |application |
for |insurance |or |in |the |past |have |submitted |fraudulent |claims |against |an |insurer
Morale |hazard |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-actions |taken |without |forethought |may |
cause |physical |injuries
Peril |- |CORRECT |ANSWER✔✔-perils |are |causes |of |loss |insured |against |in |an |insurance |policy
Life |Insurance |- |CORRECT |ANSWER✔✔-insures |against |the |financial |loss |caused |by |the |
premature |death |of |the |insured
Health |Insurance |- |CORRECT |ANSWER✔✔-insures |against |mediacal |expenses |and/or |loss |of |
income |caused |by |the |insured's |sickness |or |accidental |injury
Property |Insurance |- |CORRECT |ANSWER✔✔-insures |against |the |loss |and/or |damage |of |
property |and |resulting |in |liabilities
Questions With Correct Answers
What |is |Insurance? |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-a |policy |that |protects |survivors |from |losses |
suffered |after |an |insured's |death
What |does |insurance |do? |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-uncertainty |or |chance |of |a |loss |occurring
Pure |risk |- |CORRECT |ANSWER✔✔-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? |- |CORRECT |ANSWER✔✔-pure |risk
Speculative |risk |- |CORRECT |ANSWER✔✔-involves |opportunity |for |loss |or |gain
Hazard |- |CORRECT |ANSWER✔✔-conditions |or |situation |that |increase |probability |of |an |insured |
loss |occurring
Physical |hazard |- |CORRECT |ANSWER✔✔-individual |characteristics |that |increase |the |chances |of
|the |cause |of |loss
, Example |of |a |physical |hazard |- |CORRECT |ANSWER✔✔-past |medical |history, |existing |conditions,
|(blindness)
Moral |hazard |- |CORRECT |ANSWER✔✔-tendencise |towards |increased |risk. |moral |hazards |
inclove |evaluating |character |of |insured
example |of |moral |hazard |- |CORRECT |ANSWER✔✔-applicants |who |may |lie |on |an |application |
for |insurance |or |in |the |past |have |submitted |fraudulent |claims |against |an |insurer
Morale |hazard |- |CORRECT |ANSWER✔✔-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 |- |CORRECT |ANSWER✔✔-actions |taken |without |forethought |may |
cause |physical |injuries
Peril |- |CORRECT |ANSWER✔✔-perils |are |causes |of |loss |insured |against |in |an |insurance |policy
Life |Insurance |- |CORRECT |ANSWER✔✔-insures |against |the |financial |loss |caused |by |the |
premature |death |of |the |insured
Health |Insurance |- |CORRECT |ANSWER✔✔-insures |against |mediacal |expenses |and/or |loss |of |
income |caused |by |the |insured's |sickness |or |accidental |injury
Property |Insurance |- |CORRECT |ANSWER✔✔-insures |against |the |loss |and/or |damage |of |
property |and |resulting |in |liabilities
