Life, Health and Accident Questions and verified answers with
latest version 2026.
It is the distribution of successes of funds accumulated by the insurer and
participating policies. Which of the following statements regarding a life
insurance policy Dividened is true?
Losses due to fraud are eliminated. Which of the following is not a
benefit of insurance?
Participating John owns an insurance policy that gives him the right to
share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the
form of policy dividends. What is the participating life insurance policy?
Marketing One important function of an insurance company is to identify
and sell potential customers which of these BEST describes this function?
Mutual Insurer An insurer on by its policyholders is called a
Demutualization When a mutual insurer becomes a stock company the
process is called?
Increases the unknown premium reserve Which is not a characteristic
for reinsurance?
Capitive insurer Which of the following is an insurer established by a
parent company for the purpose of ensuring the parent companies loss
exposures?
Risk is eliminated Which of the following is a type of insurance where
an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict
losses and set appropriate premiums And insured having a large
number of similar exposure unit it's considered important because.
Speculative risk Which of the following is a situation where there is a
possibility of either lost or a gain?
Per risk is the only insurable risk Which of these statements correctly
describes risk?
Probability that an event will occur Which of the following is not
considered to be a definition of the term "loss"?
Lost must be castastrophic Which of the following is not an element of an
insurable risk?
A condition that may increase the likelihood of a loss occurring. A
hazard can be best described as.
,Moral Hazard Which of the following describes the increase in the
probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies.
Moral hazard is described as the
Loss Exposure Which of the following is considered to be any situation
that has the potential for loss?
Principle of indemnity Restoring an insured to the same condition as
before a loss is known as.
Law of Large Numbers Which of the following best describes the
statement? "the more times and event is repeating, the more predicting
the outcome becomes?"
Probability of loss is a unknown All of the following is a circumstance
must be met for loss retention to be an effective risk management
technique except?
Pure Risk A situation in which there is only a chance of loss or no loss is
a?
Probability of loss Which of the following is not required in the content
of a policy?
indemnity Restoring and insured to the same condition as before a loss is
an example of the principal of?
Equal consideration is required between the involved parties Which of
the following is not a requirement of a contract?
Rescind a policy If a material warranty violation on the part of the
insurance is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in
before the loss occurred Which of the following statements correctly
describes a contract of indemnity?
Indemnity Reasonably necessarily as a currently described with the
statement " insureds are entitled to recover and amount not greater than
the amount of the lights? "
A contract may be accepted/rejected by the insured Which statement is
correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable
promise. And unliteral contract is one which?
An offer and acceptance of the contract terms A contract requires.
Make whole What does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. Which of
the following statements about aleatory contract is not true?
, Materiality of concealment The importance of a representation is
demonstrated in what rule?
Fiduciary When handling premiums for insurance, and each and is acting
in which capacity?
Rescinding the contract Which course of action is ensuring title II
when deliberate concealment is committed by the insured?
The policy's face amount And a life insurance policies limit of liability
would be.
Require a high premium payable at each renewal In a renewable term
life insurance policy the contract will usually.
Decreasing term Which of the following type of life insurance is normally
associated with a mortgage loan?
Non-medical Which of the following is a life insurance policy that does
not require a physical exam?
Mortgage Redemption Scott has just purchased a new house. He is now
shopping for a life insurance policy that provides a death benefit that
matches the protecting a death benefit that matches the project is
outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including Which of the
following statements do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) And insurance policy Braden after
1988 the fails to pass to seven- pay test is known as.
Verbal Life An insurance policy where the insured can choose where the
cash value can be invested is called
Applicants are not requested to answer medical questions on the
application Which of the following is not a true description of a non-
medical life insurance?
Joint Life Policy Tom is shopping for a policy that covers two people I will
pay the face amount ONLY when the first person dies the type of life policy
he is looking for is called a period
Renewable Term Lynn owns a life policy the guaranteed the right to renew
the policy each year, regardless of health, but an increased premium, what
kind of policy is this?
Modify premium, ordinary life, single premium What is the proper
order of initial life insurance premiums from lowest to highest?
Second-to-die policy John and Mary having a handicapped child that is
financially dependent upon them. The death of one of the parents will not
latest version 2026.
It is the distribution of successes of funds accumulated by the insurer and
participating policies. Which of the following statements regarding a life
insurance policy Dividened is true?
Losses due to fraud are eliminated. Which of the following is not a
benefit of insurance?
Participating John owns an insurance policy that gives him the right to
share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the
form of policy dividends. What is the participating life insurance policy?
Marketing One important function of an insurance company is to identify
and sell potential customers which of these BEST describes this function?
Mutual Insurer An insurer on by its policyholders is called a
Demutualization When a mutual insurer becomes a stock company the
process is called?
Increases the unknown premium reserve Which is not a characteristic
for reinsurance?
Capitive insurer Which of the following is an insurer established by a
parent company for the purpose of ensuring the parent companies loss
exposures?
Risk is eliminated Which of the following is a type of insurance where
an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict
losses and set appropriate premiums And insured having a large
number of similar exposure unit it's considered important because.
Speculative risk Which of the following is a situation where there is a
possibility of either lost or a gain?
Per risk is the only insurable risk Which of these statements correctly
describes risk?
Probability that an event will occur Which of the following is not
considered to be a definition of the term "loss"?
Lost must be castastrophic Which of the following is not an element of an
insurable risk?
A condition that may increase the likelihood of a loss occurring. A
hazard can be best described as.
,Moral Hazard Which of the following describes the increase in the
probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies.
Moral hazard is described as the
Loss Exposure Which of the following is considered to be any situation
that has the potential for loss?
Principle of indemnity Restoring an insured to the same condition as
before a loss is known as.
Law of Large Numbers Which of the following best describes the
statement? "the more times and event is repeating, the more predicting
the outcome becomes?"
Probability of loss is a unknown All of the following is a circumstance
must be met for loss retention to be an effective risk management
technique except?
Pure Risk A situation in which there is only a chance of loss or no loss is
a?
Probability of loss Which of the following is not required in the content
of a policy?
indemnity Restoring and insured to the same condition as before a loss is
an example of the principal of?
Equal consideration is required between the involved parties Which of
the following is not a requirement of a contract?
Rescind a policy If a material warranty violation on the part of the
insurance is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in
before the loss occurred Which of the following statements correctly
describes a contract of indemnity?
Indemnity Reasonably necessarily as a currently described with the
statement " insureds are entitled to recover and amount not greater than
the amount of the lights? "
A contract may be accepted/rejected by the insured Which statement is
correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable
promise. And unliteral contract is one which?
An offer and acceptance of the contract terms A contract requires.
Make whole What does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. Which of
the following statements about aleatory contract is not true?
, Materiality of concealment The importance of a representation is
demonstrated in what rule?
Fiduciary When handling premiums for insurance, and each and is acting
in which capacity?
Rescinding the contract Which course of action is ensuring title II
when deliberate concealment is committed by the insured?
The policy's face amount And a life insurance policies limit of liability
would be.
Require a high premium payable at each renewal In a renewable term
life insurance policy the contract will usually.
Decreasing term Which of the following type of life insurance is normally
associated with a mortgage loan?
Non-medical Which of the following is a life insurance policy that does
not require a physical exam?
Mortgage Redemption Scott has just purchased a new house. He is now
shopping for a life insurance policy that provides a death benefit that
matches the protecting a death benefit that matches the project is
outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including Which of the
following statements do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) And insurance policy Braden after
1988 the fails to pass to seven- pay test is known as.
Verbal Life An insurance policy where the insured can choose where the
cash value can be invested is called
Applicants are not requested to answer medical questions on the
application Which of the following is not a true description of a non-
medical life insurance?
Joint Life Policy Tom is shopping for a policy that covers two people I will
pay the face amount ONLY when the first person dies the type of life policy
he is looking for is called a period
Renewable Term Lynn owns a life policy the guaranteed the right to renew
the policy each year, regardless of health, but an increased premium, what
kind of policy is this?
Modify premium, ordinary life, single premium What is the proper
order of initial life insurance premiums from lowest to highest?
Second-to-die policy John and Mary having a handicapped child that is
financially dependent upon them. The death of one of the parents will not
