AFLAC STUDY PRE CERT. PRACTICE
EXAM 2025 QUESTIONS AND ANSWERS
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 - ANS C. reduction
"The potential for loss" is also known as a
A. hazard
B. risk
C. transference
D. peril - ANS 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
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,D. National Association of Insurance Commissioners - ANS 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 risk
C. Loss cannot be catastrophic
D. Loss must be due to chance - ANS 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 - ANS D. Small employer
The powers directly given to an agent in an agency contract are called
A. express
B. apparent
C. implied
D. assumed - ANS A. express
An insurance company's voluntary refusal to enforce a contract's provision is called a(n)
A. waiver
B. warranty
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, C. assignment
D. concealment - ANS 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 void
D. Initial offer is automatically accepted - ANS 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 - ANS 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 - ANS 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?
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EXAM 2025 QUESTIONS AND ANSWERS
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 - ANS C. reduction
"The potential for loss" is also known as a
A. hazard
B. risk
C. transference
D. peril - ANS 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
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,D. National Association of Insurance Commissioners - ANS 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 risk
C. Loss cannot be catastrophic
D. Loss must be due to chance - ANS 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 - ANS D. Small employer
The powers directly given to an agent in an agency contract are called
A. express
B. apparent
C. implied
D. assumed - ANS A. express
An insurance company's voluntary refusal to enforce a contract's provision is called a(n)
A. waiver
B. warranty
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, C. assignment
D. concealment - ANS 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 void
D. Initial offer is automatically accepted - ANS 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 - ANS 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 - ANS 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?
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