LIFE AND HEALTH INSURANCE FINAL EXAM
NEWEST 2025 ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - RIGHT ANSWER -reinsurer
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - RIGHT ANSWER -Variable Whole Life
A life insurance policy written on one contract for two people in which it is payable upon the first
death is called - RIGHT ANSWER -Joint Policy
A nonparticipating company is sometimes called a(n) - RIGHT ANSWER -stock insurer
A nonparticipating policy will - RIGHT ANSWER -not pay dividends
A permanent life insurance policy where the policyowner pays premiums for a specified number
of years is called a(n) - RIGHT ANSWER -limited pay policy
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called - RIGHT ANSWER -A self-funded plan
A producer's powers stated in the agency contract are: - RIGHT ANSWER -Express
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called - RIGHT ANSWER -errors and omissions
, A securities license is required for a life insurance producer to sell - RIGHT ANSWER -Variable life
insurance
A spouse and child can be added to the primary insured's coverage as what kind of rider? -
RIGHT ANSWER -Family term
A type of insurer that is owned by its policyowners is called - RIGHT ANSWER -Mutual
An example of risk sharing would be - RIGHT ANSWER -Doctors pooling their money to cover
malpractice exposures
An insurer's ability to make unpredictable payouts to policyowners is called - RIGHT ANSWER
-Liquidity
Because an insurance contract has been prepared by an insurance company with no negotiation,
it is considered - RIGHT ANSWER -A contract of adhesion
Decreasing term life insurance is often used to - RIGHT ANSWER -provide coverage for a home
mortgage
How are survivorship life insurance policies helpful in estate planning? - RIGHT ANSWER -Provide
funds to help pay taxes
How do insurers predict the increase of individual risks? - RIGHT ANSWER -The law of large
numbers
NEWEST 2025 ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - RIGHT ANSWER -reinsurer
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - RIGHT ANSWER -Variable Whole Life
A life insurance policy written on one contract for two people in which it is payable upon the first
death is called - RIGHT ANSWER -Joint Policy
A nonparticipating company is sometimes called a(n) - RIGHT ANSWER -stock insurer
A nonparticipating policy will - RIGHT ANSWER -not pay dividends
A permanent life insurance policy where the policyowner pays premiums for a specified number
of years is called a(n) - RIGHT ANSWER -limited pay policy
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called - RIGHT ANSWER -A self-funded plan
A producer's powers stated in the agency contract are: - RIGHT ANSWER -Express
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called - RIGHT ANSWER -errors and omissions
, A securities license is required for a life insurance producer to sell - RIGHT ANSWER -Variable life
insurance
A spouse and child can be added to the primary insured's coverage as what kind of rider? -
RIGHT ANSWER -Family term
A type of insurer that is owned by its policyowners is called - RIGHT ANSWER -Mutual
An example of risk sharing would be - RIGHT ANSWER -Doctors pooling their money to cover
malpractice exposures
An insurer's ability to make unpredictable payouts to policyowners is called - RIGHT ANSWER
-Liquidity
Because an insurance contract has been prepared by an insurance company with no negotiation,
it is considered - RIGHT ANSWER -A contract of adhesion
Decreasing term life insurance is often used to - RIGHT ANSWER -provide coverage for a home
mortgage
How are survivorship life insurance policies helpful in estate planning? - RIGHT ANSWER -Provide
funds to help pay taxes
How do insurers predict the increase of individual risks? - RIGHT ANSWER -The law of large
numbers
