Aflac Study Pre-Cert. Practice Exam
Questions With 100% Correct Answers
ABCiCompanyiisiattemptingitoiminimizeitheiseverityiofipotentialilossesi
withiniitsicompany.iTheicompanyiisiengagediinirisk
A.itransfer
B.iretention
C.ireduction
D.iavoidancei-iCorrectiAnswer-C.ireduction
"Theipotentialiforiloss"iisialsoiknowniasia
A.ihazard
B.irisk
C.itransference
D.iperili-iCorrectiAnswer-B.irisk
AniinsuranceiapplicantiMUSTibeiinformediofianiinvestigationiregardingi
his/herireputationiandicharacteriaccordingitoithe
A.iStateiGuarantyiAssociation
B.iFairiLaboriStandardsiBoard
,C.iFairiCreditiReportingiAct
D.iNationaliAssociationiofiInsuranceiCommissionersi-iCorrectiAnswer-
C.iFairiCreditiReportingiAct
WhichioneiofitheseiisiNOTiconsidereditoibeianielementiofianiinsurableiri
sk?
A.iSpeculativeirisk
B.iPureirisk
C.iLossicannotibeicatastrophic
D.iLossimustibeidueitoichancei-iCorrectiAnswer-A.iSpeculativeirisk
Whoiwouldibeitheimostilikelyipartyiforilegallyienteringiintoiaicontract?
A.iMentallyiilliperson
B.iMinor
C.iPersoniunderitheiinfluenceiofialcohol
D.iSmalliemployeri-iCorrectiAnswer-D.iSmalliemployer
Theipowersidirectlyigivenitoianiagentiinianiagencyicontractiareicalled
A.iexpress
B.iapparent
,C.iimplied
D.iassumedi-iCorrectiAnswer-A.iexpress
Aniinsuranceicompany'sivoluntaryirefusalitoienforceiaicontract'siprovisi
oniisicalledia(n)
A.iwaiver
B.iwarranty
C.iassignment
D.iconcealmenti-iCorrectiAnswer-A.iwaiver
Whatihappensiwhenianiinitialiofferiisianswerediwithiaicounteroffer?
A.iAniarbitratoridecidesioniaicompromise
B.iTheicounterofferiisilegallyienforceable
C.iInitialiofferiisivoid
D.iInitialiofferiisiautomaticallyiacceptedi-iCorrectiAnswer-
C.iInitialiofferiisivoid
Aniinsuranceicontractimayibeivoidediifiaimisrepresentationifoundionith
eiapplicationiisidetermineditoibe
A.iconditional
, B.ialeatory
C.imaterial
D.iintentionali-iCorrectiAnswer-C.imaterial
WhichiofitheifollowingiisiNOTiaifunctioniofiaccidentaliandihealthiinsuran
ce?
A.iPaysiaideathibenefitiasiairesultiofianiillness
B.iCoversitheilossiofiincomeifromiaidisability
C.iCoversitheicostiofimedicalicareiasiairesultiofianiaccident
D.iPaysiforihospiceicareiinitheieventiofiaiterminaliillnessi-
iCorrectiAnswer-A.iPaysiaideathibenefitiasiairesultiofianiillness
Aidisabledibusinessiowneriwhoihasipayrolliandibusinessiexpensesipaidif
orihasiwhatikindiofiinsuranceipolicy?
A.iKeyiperson
B.iFranchiseidisability
C.iBusinessioverheadiexpense
D.iDisabilityiincomei-iCorrectiAnswer-C.iBusinessioverheadiexpense
WhichiofitheifollowingistatementsiBESTidescribesidisabilityibuy-
selliinsuranceipolicies?
Questions With 100% Correct Answers
ABCiCompanyiisiattemptingitoiminimizeitheiseverityiofipotentialilossesi
withiniitsicompany.iTheicompanyiisiengagediinirisk
A.itransfer
B.iretention
C.ireduction
D.iavoidancei-iCorrectiAnswer-C.ireduction
"Theipotentialiforiloss"iisialsoiknowniasia
A.ihazard
B.irisk
C.itransference
D.iperili-iCorrectiAnswer-B.irisk
AniinsuranceiapplicantiMUSTibeiinformediofianiinvestigationiregardingi
his/herireputationiandicharacteriaccordingitoithe
A.iStateiGuarantyiAssociation
B.iFairiLaboriStandardsiBoard
,C.iFairiCreditiReportingiAct
D.iNationaliAssociationiofiInsuranceiCommissionersi-iCorrectiAnswer-
C.iFairiCreditiReportingiAct
WhichioneiofitheseiisiNOTiconsidereditoibeianielementiofianiinsurableiri
sk?
A.iSpeculativeirisk
B.iPureirisk
C.iLossicannotibeicatastrophic
D.iLossimustibeidueitoichancei-iCorrectiAnswer-A.iSpeculativeirisk
Whoiwouldibeitheimostilikelyipartyiforilegallyienteringiintoiaicontract?
A.iMentallyiilliperson
B.iMinor
C.iPersoniunderitheiinfluenceiofialcohol
D.iSmalliemployeri-iCorrectiAnswer-D.iSmalliemployer
Theipowersidirectlyigivenitoianiagentiinianiagencyicontractiareicalled
A.iexpress
B.iapparent
,C.iimplied
D.iassumedi-iCorrectiAnswer-A.iexpress
Aniinsuranceicompany'sivoluntaryirefusalitoienforceiaicontract'siprovisi
oniisicalledia(n)
A.iwaiver
B.iwarranty
C.iassignment
D.iconcealmenti-iCorrectiAnswer-A.iwaiver
Whatihappensiwhenianiinitialiofferiisianswerediwithiaicounteroffer?
A.iAniarbitratoridecidesioniaicompromise
B.iTheicounterofferiisilegallyienforceable
C.iInitialiofferiisivoid
D.iInitialiofferiisiautomaticallyiacceptedi-iCorrectiAnswer-
C.iInitialiofferiisivoid
Aniinsuranceicontractimayibeivoidediifiaimisrepresentationifoundionith
eiapplicationiisidetermineditoibe
A.iconditional
, B.ialeatory
C.imaterial
D.iintentionali-iCorrectiAnswer-C.imaterial
WhichiofitheifollowingiisiNOTiaifunctioniofiaccidentaliandihealthiinsuran
ce?
A.iPaysiaideathibenefitiasiairesultiofianiillness
B.iCoversitheilossiofiincomeifromiaidisability
C.iCoversitheicostiofimedicalicareiasiairesultiofianiaccident
D.iPaysiforihospiceicareiinitheieventiofiaiterminaliillnessi-
iCorrectiAnswer-A.iPaysiaideathibenefitiasiairesultiofianiillness
Aidisabledibusinessiowneriwhoihasipayrolliandibusinessiexpensesipaidif
orihasiwhatikindiofiinsuranceipolicy?
A.iKeyiperson
B.iFranchiseidisability
C.iBusinessioverheadiexpense
D.iDisabilityiincomei-iCorrectiAnswer-C.iBusinessioverheadiexpense
WhichiofitheifollowingistatementsiBESTidescribesidisabilityibuy-
selliinsuranceipolicies?