Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
UNIT 1: The term used to describe the individual who is
covered by the insurance is
A. insurer
B. insured
C. policyowner
D. risk - CORRECT ANSWERS ✅✅B
Which of the following is a risk?
A. A car may need to have new brakes installed after
several years of regular driving.
B. An individual may need medical attention after slipping
on the ice and falling.
C. Both are examples of risk.
D. Neither is an example of risk. - CORRECT ANSWERS
✅✅B
The estimation of future losses is more accurate when
information is from
A. a small select group
B. a large group
C. a medium-sized group
,Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
D. any size group; group size does not matter - CORRECT
ANSWERS ✅✅A
The application of the law of large numbers enables
insurers to
A. estimate the future losses of a class or group of people
B. predict the future losses of speci c individuals
C. charge higher premiums for insurance
D. calculate mortality charges - CORRECT ANSWERS
✅✅B
Which type of policy is designed to protect against the
risk of living too long?
A. Casualty
B. Life
C. Annuity
D. Medical expense - CORRECT ANSWERS ✅✅C
Which of the following is a type of insurance company
owned by its shareholders?
A. Mutual B. Stock
C. Lloyd's D. Reinsurer - CORRECT ANSWERS ✅✅B
,Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
The ZYX Insurance Company is incorporated in Alabama.
While doing business in Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien
insurer D. an export insurer - CORRECT ANSWERS
✅✅B
The ZYX Insurance Company is incorporated in Mexico.
While doing business in Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien
insurer D. an export insurer - CORRECT ANSWERS
✅✅C
Self-insurance is an example of which method of handling
risk?
A. Acceptance B. Transference C. Avoidance D. Reduction
- CORRECT ANSWERS ✅✅A
Which of the following terms is used to denote insurance
companies?
A. Broker
B. Exchange C. Corporation D. Insurer - CORRECT
ANSWERS ✅✅D
, Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
A social device for spreading the chance of financial loss
among a large number of people is the definition of
A. hazard
B. risk
C. insurance
D. peril - CORRECT ANSWERS ✅✅C
Which of the following risks is most likely to be
insurable?
A. George is concerned about the financial impact his
premature death would have on his family.
B. Talyn is concerned about the financial impact large
betting losses at the horse track will have on his
retirement savings.
C. John is concerned about the financial impact on his
savings when his car eventually becomes worn enough to
need to be replaced.
D. Jewel is concerned about the nancial effect losing her
hat would have on her weekly spending money. -
CORRECT ANSWERS ✅✅A
Question & Answers ( Latest 2025 )
UNIT 1: The term used to describe the individual who is
covered by the insurance is
A. insurer
B. insured
C. policyowner
D. risk - CORRECT ANSWERS ✅✅B
Which of the following is a risk?
A. A car may need to have new brakes installed after
several years of regular driving.
B. An individual may need medical attention after slipping
on the ice and falling.
C. Both are examples of risk.
D. Neither is an example of risk. - CORRECT ANSWERS
✅✅B
The estimation of future losses is more accurate when
information is from
A. a small select group
B. a large group
C. a medium-sized group
,Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
D. any size group; group size does not matter - CORRECT
ANSWERS ✅✅A
The application of the law of large numbers enables
insurers to
A. estimate the future losses of a class or group of people
B. predict the future losses of speci c individuals
C. charge higher premiums for insurance
D. calculate mortality charges - CORRECT ANSWERS
✅✅B
Which type of policy is designed to protect against the
risk of living too long?
A. Casualty
B. Life
C. Annuity
D. Medical expense - CORRECT ANSWERS ✅✅C
Which of the following is a type of insurance company
owned by its shareholders?
A. Mutual B. Stock
C. Lloyd's D. Reinsurer - CORRECT ANSWERS ✅✅B
,Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
The ZYX Insurance Company is incorporated in Alabama.
While doing business in Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien
insurer D. an export insurer - CORRECT ANSWERS
✅✅B
The ZYX Insurance Company is incorporated in Mexico.
While doing business in Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien
insurer D. an export insurer - CORRECT ANSWERS
✅✅C
Self-insurance is an example of which method of handling
risk?
A. Acceptance B. Transference C. Avoidance D. Reduction
- CORRECT ANSWERS ✅✅A
Which of the following terms is used to denote insurance
companies?
A. Broker
B. Exchange C. Corporation D. Insurer - CORRECT
ANSWERS ✅✅D
, Life and Health Insurance Exam 1
Question & Answers ( Latest 2025 )
A social device for spreading the chance of financial loss
among a large number of people is the definition of
A. hazard
B. risk
C. insurance
D. peril - CORRECT ANSWERS ✅✅C
Which of the following risks is most likely to be
insurable?
A. George is concerned about the financial impact his
premature death would have on his family.
B. Talyn is concerned about the financial impact large
betting losses at the horse track will have on his
retirement savings.
C. John is concerned about the financial impact on his
savings when his car eventually becomes worn enough to
need to be replaced.
D. Jewel is concerned about the nancial effect losing her
hat would have on her weekly spending money. -
CORRECT ANSWERS ✅✅A
