Life and Health Insurance Exam 1 Questions and Answers Already Passed

Life and Health Insurance Exam 1 Questions and Answers Already Passed UNIT 1: The term used to describe the individual who is covered by the insurance is A. insurer B. insured C. policyowner D. risk B Which of the following is a risk? A. A car may need to have new brakes installed after several years of regular driving. B. An individual may need medical attention after slipping on the ice and falling. C. Both are examples of risk. D. Neither is an example of risk. B The estimation of future losses is more accurate when information is from A. a small select group B. a large group C. a medium-sized group D. any size group; group size does not matter A The application of the law of large numbers enables insurers to A. estimate the future losses of a class or group of people B. predict the future losses of speci c individuals C. charge higher premiums for insurance D. calculate mortality charges B Which type of policy is designed to protect against the risk of living too long? A. Casualty B. Life C. Annuity D. Medical expense C Which of the following is a type of insurance company owned by its shareholders? A. Mutual B. Stock C. Lloyd's D. Reinsurer B The ZYX Insurance Company is incorporated in Alabama. While doing business in Texas, it is A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an export insurer B The ZYX Insurance Company is incorporated in Mexico. While doing business in Texas, it is A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an export insurer C Self-insurance is an example of which method of handling risk? A. Acceptance B. Transference C. Avoidance D. Reduction A Which of the following terms is used to denote insurance companies? A. Broker B. Exchange C. Corporation D. Insurer D A social device for spreading the chance of financial loss among a large number of people is the definition of A. hazard B. risk C. insurance D. peril C Which of the following risks is most likely to be insurable? A. George is concerned about the financial impact his premature death would have on his family. B. Talyn is concerned about the financial impact large betting losses at the horse track will have on his retirement savings. C. John is concerned about the financial impact on his savings when his car eventually becomes worn enough to need to be replaced. D. Jewel is concerned about the nancial effect losing her hat would have on her weekly spending money. A Roger refuses to travel by airplane. Roger is managing the risk of being in a plane crash by A. reduction B. avoidance C. transference D. retention B Chianna becomes injured in a car accident caused when she took her eyes off the road to answer her cell phone. This is an example of A. a physical hazard B. a moral hazard C. a