NEW MEXICO HEALTH AND LIFE INSURANCE
EXAM QUESTIONS |GUARANTEED ACCURATE
ANSWERS |VERSION 2026\27
Risk -ACCURATE ANSWER Risk
Uncertainty of financial loss or a chance of loss -ACCURATE ANSWER
Hazard -ACCURATE ANSWER A hazard is a condition that makes a peril more
likely to happen or that increases the seriousness of a loss
Hazard -ACCURATE ANSWER Any factor that gives rise to peril
Peril -ACCURATE ANSWER cause of loss
Peril -ACCURATE ANSWER And immediate specific event causing loss in giving
rise to risk
Physical Hazard -ACCURATE ANSWER Arises from material structural for
operational features such as a slippery floor or unsanitary conditions
Moral hazard -ACCURATE ANSWER Arises from people's habits and values such
as filing a false claim
Morale Hazard -ACCURATE ANSWER Arises from human carelessness or a
responsibility such as bailing to take safety precaution
, Exposure -ACCURATE ANSWER
Loss -ACCURATE ANSWER Last must be measurable, the insurer must be able to
place a specific monetary value
Methods of Handling Risk -ACCURATE ANSWER Avoidance
Retention
Sharing
Reduction
Transferavoidance
Elements of insurable risks -ACCURATE ANSWER 1.Large numbers of
homogeneous units, I large number of similar exposure units is necessary in order
for the pooling in sharing mechanisms of insurance to function
2.Los must be measurable by being able to place a specific monetary value on
exposures and losses in order to be able to calculate rates in premiums and reach
settlements
3. Lost must be uncertain, insurance covers purists which messed inns involve an
uncertainty of loss
4.Economic hardship, there must be a significant potential for economic loss a.k.a.
A higher dollar value
5.Exclusion of catastrophic perils, Mini policies exclude losses resulting from war
nuclear hazards flooded earthquake because the insurance system would collapse if
we covered events that caused widespread losses to large numbers at the same time
EXAM QUESTIONS |GUARANTEED ACCURATE
ANSWERS |VERSION 2026\27
Risk -ACCURATE ANSWER Risk
Uncertainty of financial loss or a chance of loss -ACCURATE ANSWER
Hazard -ACCURATE ANSWER A hazard is a condition that makes a peril more
likely to happen or that increases the seriousness of a loss
Hazard -ACCURATE ANSWER Any factor that gives rise to peril
Peril -ACCURATE ANSWER cause of loss
Peril -ACCURATE ANSWER And immediate specific event causing loss in giving
rise to risk
Physical Hazard -ACCURATE ANSWER Arises from material structural for
operational features such as a slippery floor or unsanitary conditions
Moral hazard -ACCURATE ANSWER Arises from people's habits and values such
as filing a false claim
Morale Hazard -ACCURATE ANSWER Arises from human carelessness or a
responsibility such as bailing to take safety precaution
, Exposure -ACCURATE ANSWER
Loss -ACCURATE ANSWER Last must be measurable, the insurer must be able to
place a specific monetary value
Methods of Handling Risk -ACCURATE ANSWER Avoidance
Retention
Sharing
Reduction
Transferavoidance
Elements of insurable risks -ACCURATE ANSWER 1.Large numbers of
homogeneous units, I large number of similar exposure units is necessary in order
for the pooling in sharing mechanisms of insurance to function
2.Los must be measurable by being able to place a specific monetary value on
exposures and losses in order to be able to calculate rates in premiums and reach
settlements
3. Lost must be uncertain, insurance covers purists which messed inns involve an
uncertainty of loss
4.Economic hardship, there must be a significant potential for economic loss a.k.a.
A higher dollar value
5.Exclusion of catastrophic perils, Mini policies exclude losses resulting from war
nuclear hazards flooded earthquake because the insurance system would collapse if
we covered events that caused widespread losses to large numbers at the same time
