2024 INDIANA LIFE AND HEALTH
INSURANCE EXAM WITH CORRECT
ANSWERS
Suitability Considerations - CORRECT ANSWERS-An agent has a responsibility
to make purchase recommendations that are appropriate, or suitable, in light
of a client's particular needs, objectives, and circumstances
5 Elements of a Legal Contract - CORRECT ANSWERS-Consideration, legal
purpose, offer, acceptance, and competent parties
Acceptance - CORRECT ANSWERS-Acceptance of an offer must be
unconditional and unqualified
Fraud - CORRECT ANSWERS-Intentional act designed to deceive and induce
another party to part with something of value
Waiver - CORRECT ANSWERS-The intentional relinquishment of a known right
Estoppel - CORRECT ANSWERS-Legal doctrine that prevents a party from
denying an action if it had been accepted previously
Insurance - CORRECT ANSWERS-A contract that transfers the risk of financial
loss from an individual or business to an insurer
Risk - CORRECT ANSWERS-Uncertainty about whether a loss will occur
Speculative Risk - CORRECT ANSWERS-Possibility of a loss or gain. Not
insured.
Pure Risk - CORRECT ANSWERS-Possibility of experiencing loss. Covered by
insurance.
Loss - CORRECT ANSWERS-The reduction in the value of an asset
, Adhesion - CORRECT ANSWERS-Provisions of an insurance contract are
written by only one party to the contract, and the other party is required to
adhere
Aleatory - CORRECT ANSWERS-The value received from the insurance
contract by each party may be unequal
Utmost Good Faith - CORRECT ANSWERS-An obligation to act in complete
honesty and to disclose all relevant facts
Unilateral - CORRECT ANSWERS-Insurance contracts are unilateral, one
sided, contracts because only one party is legally bound to perform under
the contract - insurer
Personal Contract - CORRECT ANSWERS-Made to one person and no one else
- property-casualty
Impersonal Contract - CORRECT ANSWERS-Life and health are not personal
contracts - wife (policyowner) could insure husband (insured)
Conditional - CORRECT ANSWERS-insured must pay the premium for
coverage and file a claim if a loss occurs
Indemnification - CORRECT ANSWERS-Putting the policyholder back in the
same financial condition he or she was in before a loss occurred
Representation - CORRECT ANSWERS-A statement believed to be true to the
best of one's knowledge
Warranty - CORRECT ANSWERS-Statement guranteed to be true
Concealment - CORRECT ANSWERS-Intentional failure to disclose facts
Exposure - CORRECT ANSWERS-Risk assumed by an insurer and the amount
that the insurer is responsible to pay out at any given time. Expressed in
units
Peril - CORRECT ANSWERS-Cause of loss
Hazard - CORRECT ANSWERS-Anything that increases the chance that loss
will occur
Physical Hazard - CORRECT ANSWERS-A physically identifiable hazard
Moral Hazard - CORRECT ANSWERS-Hazard that arises from someone's
character
INSURANCE EXAM WITH CORRECT
ANSWERS
Suitability Considerations - CORRECT ANSWERS-An agent has a responsibility
to make purchase recommendations that are appropriate, or suitable, in light
of a client's particular needs, objectives, and circumstances
5 Elements of a Legal Contract - CORRECT ANSWERS-Consideration, legal
purpose, offer, acceptance, and competent parties
Acceptance - CORRECT ANSWERS-Acceptance of an offer must be
unconditional and unqualified
Fraud - CORRECT ANSWERS-Intentional act designed to deceive and induce
another party to part with something of value
Waiver - CORRECT ANSWERS-The intentional relinquishment of a known right
Estoppel - CORRECT ANSWERS-Legal doctrine that prevents a party from
denying an action if it had been accepted previously
Insurance - CORRECT ANSWERS-A contract that transfers the risk of financial
loss from an individual or business to an insurer
Risk - CORRECT ANSWERS-Uncertainty about whether a loss will occur
Speculative Risk - CORRECT ANSWERS-Possibility of a loss or gain. Not
insured.
Pure Risk - CORRECT ANSWERS-Possibility of experiencing loss. Covered by
insurance.
Loss - CORRECT ANSWERS-The reduction in the value of an asset
, Adhesion - CORRECT ANSWERS-Provisions of an insurance contract are
written by only one party to the contract, and the other party is required to
adhere
Aleatory - CORRECT ANSWERS-The value received from the insurance
contract by each party may be unequal
Utmost Good Faith - CORRECT ANSWERS-An obligation to act in complete
honesty and to disclose all relevant facts
Unilateral - CORRECT ANSWERS-Insurance contracts are unilateral, one
sided, contracts because only one party is legally bound to perform under
the contract - insurer
Personal Contract - CORRECT ANSWERS-Made to one person and no one else
- property-casualty
Impersonal Contract - CORRECT ANSWERS-Life and health are not personal
contracts - wife (policyowner) could insure husband (insured)
Conditional - CORRECT ANSWERS-insured must pay the premium for
coverage and file a claim if a loss occurs
Indemnification - CORRECT ANSWERS-Putting the policyholder back in the
same financial condition he or she was in before a loss occurred
Representation - CORRECT ANSWERS-A statement believed to be true to the
best of one's knowledge
Warranty - CORRECT ANSWERS-Statement guranteed to be true
Concealment - CORRECT ANSWERS-Intentional failure to disclose facts
Exposure - CORRECT ANSWERS-Risk assumed by an insurer and the amount
that the insurer is responsible to pay out at any given time. Expressed in
units
Peril - CORRECT ANSWERS-Cause of loss
Hazard - CORRECT ANSWERS-Anything that increases the chance that loss
will occur
Physical Hazard - CORRECT ANSWERS-A physically identifiable hazard
Moral Hazard - CORRECT ANSWERS-Hazard that arises from someone's
character
