Life and Health Insurance Exam 1
Questions and Answers Latest Version
Already Passed
What is the primary purpose of life insurance?
✔✔ A. To provide financial protection to beneficiaries
B. To increase income
C. To pay off personal debt
D. To invest in the stock market
Which type of life insurance covers you for a specific period?
✔✔ A. Term Life
B. Whole Life
C. Universal Life
D. Variable Life
Which policy builds cash value over time?
A. Term Life
✔✔ B. Whole Life
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,C. Credit Life
D. Group Term
A beneficiary is:
A. The agent who sells the policy
✔✔ B. The person who receives the death benefit
C. The person who underwrites the policy
D. The company issuing the policy
Which type of health insurance covers hospital and surgical expenses?
✔✔ A. Major Medical
B. Accidental Death
C. Term Life
D. Credit Disability
A policy that cannot be canceled by the insurer during a specified period is:
✔✔ A. Noncancelable
B. Convertible
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,C. Renewable
D. Participating
The person who pays the insurance premium is known as:
✔✔ A. The policyowner
B. The underwriter
C. The insured
D. The agent
What is a grace period in life insurance?
A. Time to contest a claim
✔✔ B. Time allowed to pay a late premium
C. Time for underwriting approval
D. Time for benefit payout
What does insurable interest mean?
✔✔ A. You would suffer a loss if the insured dies
B. You want to profit from someone’s death
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, C. You are curious about their finances
D. You’re related by blood
What is underwriting in insurance?
✔✔ A. The process of evaluating risk
B. Paying out a claim
C. Selling policies
D. Settling disputes
Which rider allows purchase of additional insurance without proof of insurability?
✔✔ A. Guaranteed Insurability
B. Waiver of Premium
C. Accelerated Death Benefit
D. Accidental Death
What is the main benefit of group life insurance?
A. Individual customization
✔✔ B. Lower premiums
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Questions and Answers Latest Version
Already Passed
What is the primary purpose of life insurance?
✔✔ A. To provide financial protection to beneficiaries
B. To increase income
C. To pay off personal debt
D. To invest in the stock market
Which type of life insurance covers you for a specific period?
✔✔ A. Term Life
B. Whole Life
C. Universal Life
D. Variable Life
Which policy builds cash value over time?
A. Term Life
✔✔ B. Whole Life
1
,C. Credit Life
D. Group Term
A beneficiary is:
A. The agent who sells the policy
✔✔ B. The person who receives the death benefit
C. The person who underwrites the policy
D. The company issuing the policy
Which type of health insurance covers hospital and surgical expenses?
✔✔ A. Major Medical
B. Accidental Death
C. Term Life
D. Credit Disability
A policy that cannot be canceled by the insurer during a specified period is:
✔✔ A. Noncancelable
B. Convertible
2
,C. Renewable
D. Participating
The person who pays the insurance premium is known as:
✔✔ A. The policyowner
B. The underwriter
C. The insured
D. The agent
What is a grace period in life insurance?
A. Time to contest a claim
✔✔ B. Time allowed to pay a late premium
C. Time for underwriting approval
D. Time for benefit payout
What does insurable interest mean?
✔✔ A. You would suffer a loss if the insured dies
B. You want to profit from someone’s death
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, C. You are curious about their finances
D. You’re related by blood
What is underwriting in insurance?
✔✔ A. The process of evaluating risk
B. Paying out a claim
C. Selling policies
D. Settling disputes
Which rider allows purchase of additional insurance without proof of insurability?
✔✔ A. Guaranteed Insurability
B. Waiver of Premium
C. Accelerated Death Benefit
D. Accidental Death
What is the main benefit of group life insurance?
A. Individual customization
✔✔ B. Lower premiums
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