New Mexico Life, Health, Accident Actual Exam Questions And Answers Practice Questions with Solutions Newest | Already Graded A+

New Mexico Life, Health, Accident Actual Exam
Questions And Answers Practice Questions with
Solutions Newest | Already Graded A+




Question: Which New Mexico agency is responsible for regulating
insurance producers and insurers for life and health lines?
A) New Mexico Department of Finance and Administration
B) New Mexico Office of Superintendent of Insurance (OSI)
C) New Mexico Public Regulation Commission
D) New Mexico Department of Taxation and Revenue
Answer: B) New Mexico Office of Superintendent of Insurance (OSI)

Question: What is the total number of scored questions on the New
Mexico Life, Accident and Health Insurance exam (Series 18-27)?
A) 100 scored questions
B) 125 scored questions
C) 150 scored questions
D) 200 scored questions
Answer: C) 150 scored questions

Question: What is the passing score required for the New Mexico Series
18-27 exam?
A) 65%
B) 70%
C) 72%
D) 75%
Answer: B) 70%

Question: A method of spreading the risk of financial loss among a large
number of people is the definition of:
A) Indemnity
B) Insurance
C) Risk
D) Hazard
Answer: B) Insurance

Question: Which of the following is an example of a pure risk?
A) Gambling at a casino

, B) Investing in the stock market
C) The chance of a house fire
D) Starting a new business
Answer: C) The chance of a house fire

Question: Which type of risk involves both an uncertainty of loss and of
gain?
A) Pure risk
B) Particular risk
C) Speculative risk
D) Fundamental risk
Answer: C) Speculative risk

Question: Which of the following is NOT a characteristic of an insurable
risk?
A) Due to chance
B) Measurable and predictable
C) Based upon a large enough pool to allow accurate prediction of loss
D) Must involve the possibility of a significant economic gain
Answer: D) Must involve the possibility of a significant economic gain

Question: Which type of hazard is defined by a careless attitude on the
part of the insured that increases the chance of loss?
A) Physical Hazard
B) Moral Hazard
C) Morale Hazard
D) Legal Hazard
Answer: C) Morale Hazard

Question: Avoiding any activity that could potentially result in a loss is an
example of which risk management method?
A) Retention
B) Reduction
C) Transference
D) Avoidance
Answer: D) Avoidance

Question: An insurance policy may be considered a contract of adhesion.
This means that:
A) The policy is written by the insured
B) The policy is written by the insurer, leaving the insured little or no
opportunity to negotiate terms
C) Both parties have equal bargaining power in drafting the contract
D) The policy must be reviewed by an attorney before it becomes