Northwestern Mutual Life & Health
Training Exam: General Insurance
Questions and Answers Graded A+
Exposure - Correct answer-unit of measurement used to determine rates charged
for insurance coverage.
What factors are considered in determining rates? - Correct answer--Age of insured
- Medical History
- Occupation
- Sex
What does homogeneous mean in insurance? - Correct answer-large number of
units having the same or similar exposure to loss.
Hazard - Correct answer-conditions or situation that increase the probability of an
injured loss occurring.
Physical Hazards - Correct answer-individual characteristics that increase the
chances of the cause of loss. (physical condition, past medical history).
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, What kind of hazards are there? - Correct answer-- Physical
- Moral
- Morale
Moral Hazards - Correct answer-Tendencies towards increased risk (i.e.
character/reputation of the insured party)
Morale Hazards - Correct answer-arise from the state of mind that causes
indifference to loss such as carelessness
Perils - Correct answer-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 the medical expenses or loss of
income caused by the insured's sickness or accidental injury
Property Insurance - Correct answer-insures against the loss of physical property or
the loss of its income-producing abilities
Casualty Insurace - Correct answer-insures against the loss/damage of property and
resulting liabilities
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Training Exam: General Insurance
Questions and Answers Graded A+
Exposure - Correct answer-unit of measurement used to determine rates charged
for insurance coverage.
What factors are considered in determining rates? - Correct answer--Age of insured
- Medical History
- Occupation
- Sex
What does homogeneous mean in insurance? - Correct answer-large number of
units having the same or similar exposure to loss.
Hazard - Correct answer-conditions or situation that increase the probability of an
injured loss occurring.
Physical Hazards - Correct answer-individual characteristics that increase the
chances of the cause of loss. (physical condition, past medical history).
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, What kind of hazards are there? - Correct answer-- Physical
- Moral
- Morale
Moral Hazards - Correct answer-Tendencies towards increased risk (i.e.
character/reputation of the insured party)
Morale Hazards - Correct answer-arise from the state of mind that causes
indifference to loss such as carelessness
Perils - Correct answer-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 the medical expenses or loss of
income caused by the insured's sickness or accidental injury
Property Insurance - Correct answer-insures against the loss of physical property or
the loss of its income-producing abilities
Casualty Insurace - Correct answer-insures against the loss/damage of property and
resulting liabilities
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
