3/5/26, 6:46 PM Life and Health Insurance EXAM, comprehensive questions and verified answers QUESTIONS WITH ACCURATE ANSWERS | GET…
Life and Health Insurance EXAM, comprehensive
questions and verified answers QUESTIONS WITH
ACCURATE ANSWERS | GET IT RIGHT |2025\2026!
Save
Terms in this set (185)
Concept of insurance The transfer of risk from one party to another
through a legal contract.
Law of Large Numbers The larger the number of risks insured in the same
risk pool; the more predictable losses become.
Peril An immediate, specific event that causes a loss.
Loss An unintended, unforeseen reduction, or
destruction of financial or economic value.
Hazard Creates an increased possibility that a peril (a
cause of a loss) will actually occur.
Occurrence Is any event that causes a loss.
Risk Risk is defined as thepotential or uncertainty for
loss.
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,3/5/26, 6:46 PM Life and Health Insurance EXAM, comprehensive questions and verified answers QUESTIONS WITH ACCURATE ANSWERS | GET…
Speculative risk A situation in which either profit or loss is possible,
not insured.
Industrial life insurance Issues very small face amounts, such as $1,000 or
$2,000. Premiums are paid weekly and collected by
debit agents. They were designed for burial
coverage.
Ordinary life insurance Life insurance of commercial companies not issued
on the weekly premium basis. It is made up of
several types of individual life insurance, such as
temporary (term), permanent (whole).
Group life insurance Insurance written for members of a group, such as
a place of employment, association, or a union.
Coverage is provided to the members of that
group under one master contract. The group is
underwritten as a whole, not on each individual
member. One of the benefits of group life
coverage is usually there is no evidence of
insurability required.
Term life insurance Life insurance that pays a death benefit if the
policyholder dies within a specific time period but
has no remaining value at the end of this time.
Whole life insurance Sometimes called straight life insurance or ordinary
life insurance; can provide lifetime insurance
coverage; in this case, fixed premiums are paid for
life; pays interest on the cash value portion with a
guaranteed minimum interest rate during life of the
contract.
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, 3/5/26, 6:46 PM Life and Health Insurance EXAM, comprehensive questions and verified answers QUESTIONS WITH ACCURATE ANSWERS | GET…
Joint survivor or last survivor life Cover the lives of two individuals and saves on
policies premium costs by averaging the ages of the two
insureds. Joint Life Survivor or Last Survivor policies
only pay the death benefit upon the death of the
last insured person. For example, say B and M
purchase a joint life survivor policy. If B were to die
first and then M died 10 years later, no benefits
would be paid out from the policy until M died. A
Joint Life and Survivor policy covers two lives but
only pays benefits after the death of the last
insured.
Family maintenance policy Pays a monthly income from the date of death of
the insured to the end of the preselected period.
Family income policy Combines Whole Life insurance with a Decreasing
Term
Rider also written on the same person.
Adjustable life policy Whole life insurance policy, but you can change
your policy as your needs change. You can change
your premium payments to increase or decrease
coverage.
Universal life insurance policy Incorporates flexible premiums and an adjustable
death benefit. The investment gains from a
Universal Life Policy usually go toward the cash
value. The policy owner can use the cash value to
manipulate the flexible aspects of a universal life
insurance policy. A customer who wants a policy
that gives them the most options and the most
control would be looking for a Universal Life Policy.
Universal policies use gains to fund the cash value
and give the policy owner options for flexible
premiums and adjustable death benefits.
https://quizlet.com/1152257141/life-and-health-insurance-exam-comprehensive-questions-and-verified-answers-questions-with-accurate-answers-get… 3/29
Life and Health Insurance EXAM, comprehensive
questions and verified answers QUESTIONS WITH
ACCURATE ANSWERS | GET IT RIGHT |2025\2026!
Save
Terms in this set (185)
Concept of insurance The transfer of risk from one party to another
through a legal contract.
Law of Large Numbers The larger the number of risks insured in the same
risk pool; the more predictable losses become.
Peril An immediate, specific event that causes a loss.
Loss An unintended, unforeseen reduction, or
destruction of financial or economic value.
Hazard Creates an increased possibility that a peril (a
cause of a loss) will actually occur.
Occurrence Is any event that causes a loss.
Risk Risk is defined as thepotential or uncertainty for
loss.
https://quizlet.com/1152257141/life-and-health-insurance-exam-comprehensive-questions-and-verified-answers-questions-with-accurate-answers-get… 1/29
,3/5/26, 6:46 PM Life and Health Insurance EXAM, comprehensive questions and verified answers QUESTIONS WITH ACCURATE ANSWERS | GET…
Speculative risk A situation in which either profit or loss is possible,
not insured.
Industrial life insurance Issues very small face amounts, such as $1,000 or
$2,000. Premiums are paid weekly and collected by
debit agents. They were designed for burial
coverage.
Ordinary life insurance Life insurance of commercial companies not issued
on the weekly premium basis. It is made up of
several types of individual life insurance, such as
temporary (term), permanent (whole).
Group life insurance Insurance written for members of a group, such as
a place of employment, association, or a union.
Coverage is provided to the members of that
group under one master contract. The group is
underwritten as a whole, not on each individual
member. One of the benefits of group life
coverage is usually there is no evidence of
insurability required.
Term life insurance Life insurance that pays a death benefit if the
policyholder dies within a specific time period but
has no remaining value at the end of this time.
Whole life insurance Sometimes called straight life insurance or ordinary
life insurance; can provide lifetime insurance
coverage; in this case, fixed premiums are paid for
life; pays interest on the cash value portion with a
guaranteed minimum interest rate during life of the
contract.
https://quizlet.com/1152257141/life-and-health-insurance-exam-comprehensive-questions-and-verified-answers-questions-with-accurate-answers-get… 2/29
, 3/5/26, 6:46 PM Life and Health Insurance EXAM, comprehensive questions and verified answers QUESTIONS WITH ACCURATE ANSWERS | GET…
Joint survivor or last survivor life Cover the lives of two individuals and saves on
policies premium costs by averaging the ages of the two
insureds. Joint Life Survivor or Last Survivor policies
only pay the death benefit upon the death of the
last insured person. For example, say B and M
purchase a joint life survivor policy. If B were to die
first and then M died 10 years later, no benefits
would be paid out from the policy until M died. A
Joint Life and Survivor policy covers two lives but
only pays benefits after the death of the last
insured.
Family maintenance policy Pays a monthly income from the date of death of
the insured to the end of the preselected period.
Family income policy Combines Whole Life insurance with a Decreasing
Term
Rider also written on the same person.
Adjustable life policy Whole life insurance policy, but you can change
your policy as your needs change. You can change
your premium payments to increase or decrease
coverage.
Universal life insurance policy Incorporates flexible premiums and an adjustable
death benefit. The investment gains from a
Universal Life Policy usually go toward the cash
value. The policy owner can use the cash value to
manipulate the flexible aspects of a universal life
insurance policy. A customer who wants a policy
that gives them the most options and the most
control would be looking for a Universal Life Policy.
Universal policies use gains to fund the cash value
and give the policy owner options for flexible
premiums and adjustable death benefits.
https://quizlet.com/1152257141/life-and-health-insurance-exam-comprehensive-questions-and-verified-answers-questions-with-accurate-answers-get… 3/29
