LIFE & HEALTH INSURANCE COMPREHENSIVE EXAM
2025/2026 || QUESTIONS WITH CORRECT DETAILED
ANSWERS || 100% GUARANTEED PASS <BRAND
NEW VERSION>
Medical Expense Policies for Self Employer Persons
.......Answer.........Deduct premiums if have a net profit from
business
not covered by a group policy
Benefits not taxable
Medical Expense Policies for Self Employer partnerships
.......Answer.........Premiums deductible for partnership
Premiums are income to partners
,age 2 of 126
benefits not taxable
HSA (Health Savings Account) .......Answer.........Individually
owned medical expense savings account
Contributions are tax deductible
Withdrawals are tax free
Must have HDHP
Account values accumulate from year to year
Medical Savings Account (MSA) .......Answer.........Employed by
less than 50 employer
Self Employed
Contributions deductible
Must have HDHP
,age 3 of 126
Tax Free withdrawals
New plans not allowed after 2006
Health Reimbursement Account (HRA) .......Answer.........Employer-
funded plan that reimburses employees only for eligible and
substantiated health-care expenses.
HDHP not required
Money rolls over from year to year
Flexible Spending Account (FSA) .......Answer.........A salary
reduction cafeteria plan that uses employee funds to provide
various types of health care benefits.
Insurance .......Answer.........Transfer of Risk
Risk .......Answer.........Uncertainty/ Possibility of Loss
, age 4 of 126
Exposure .......Answer.........Risks for which the insurance company
would be liable
Peril .......Answer.........Cause of Loss
Hazard .......Answer.........Something that causes an increase in the
chance of loss
Physical Hazard .......Answer.........Hazard that can be seen
Moral Hazard .......Answer.........A belief that intentionally causing
a loss is acceptable
Morale Hazard .......Answer.........Carelessness
STARR .......Answer.........Method of handling risk
S- Method of handling risks .......Answer.........Sharing
T- Method of handling risk .......Answer.........Transfer