Aflac Study Pre Cert. Practice Exam Quizzes And Answers Latest 2024

ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk A. transfer B. retention C. reduction D. avoidance - Answer-C. reduction "The potential for loss" is also known as a A. hazard B. risk C. transference D. peril - Answer-B. risk An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the A. State Guaranty Association B. Fair Labor Standards Board C. Fair Credit Reporting Act D. National Association of Insurance Commissioners - Answer-C. Fair Credit Reporting Act Which one of these is NOT considered to be an element of an insurable risk? A. Speculative risk B. Pure riskC. Loss cannot be catastrophic D. Loss must be due to chance - Answer-A. Speculative risk Who would be the most likely party for legally entering into a contract? A. Mentally ill person B. Minor C. Person under the influence of alcohol D. Small employer - Answer-D. Small employer The powers directly given to an agent in an agency contract are called A. express B. apparent C. implied D. assumed - Answer-A. express An insurance company's voluntary refusal to enforce a contract's provision is called a(n) A. waiver B. warranty C. assignment D. concealment - Answer-A. waiver What happens when an initial offer is answered with a counteroffer? A. An arbitrator decides on a compromise B. The counteroffer is legally enforceable C. Initial offer is voidD. Initial offer is automatically accepted - Answer-C. Initial offer is void An insurance contract may be voided if a misrepresentation found on the application is determined to be A. conditional B. aleatory C. material D. intentional - Answer-C. material Which of the following is NOT a function of accidental and health insurance? A. Pays a death benefit as a result of an illness B. Covers the loss of income from a disability C. Covers the cost of medical care as a result of an accident D. Pays for hospice care in the event of a terminal illness - Answer-A. Pays a death benefit as a result of an illness A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy? A. Key person B. Franchise disability C. Business overhead expense D. Disability income - Answer-C. Business overhead expense Which of the following statements BEST describes disability buy-sell insurance policies? A. Benefits are taxable to the business entity B. Premiums are typically tax-deductibleC. Benefits are typically tax-free D. Benefits are paid to the disabled insured - Answer-C. Benefits are typically tax-free An accident and health insurance policy defines an injury as "bodily injury by accidental means". For an injury to be covered on this policy, what is required? A. The accident must be external and violent B. The cause of the accident must be intentional C. Only the injury resulting from an accident must be unintentional D. Both the cause and the result of an accident must be unintentional - Answer-D. Both the cause and the result of an accident must be unintentional