P | a | g |e | |
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LIFE ACCIDENT AND HEALTH INSURANCE EXAM
2025 ACTUAL EXAM COMPLETE 300 QUESTIONS
WITH DETAILED VERIFIED ANSWERS
The insurer is automatically reinstated by 45 days
| | | | | | |
unless the insurer rejects the insured.
| | | | | |
The law of large numbers states that...
| | | | | |
a. all losses are predictable.
| | |
b. large losses are easier to predict.
| | | | |
c. predictions become more accurate as the | | | | |
number of units being considered increase.
| | | | | |
d. small losses are predictable. - CORRECT
| | | | |
ANSWER >>>>The predictions become more
| | | | |
accurate as the number of units being considered
| | | | | | | |
increases.
|
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The more people an insurer covers, the easier it is
| | | | | | | | |
to predict future claims based on this law. This is
| | | | | | | | | |
why Life insurance companies usually make a
| | | | | | |
profit by measuring the chance of death using a
| | | | | | | | |
mortality table.
| |
Premiums paid by sole proprietors for Individual
| | | | | |
Health Insurance coverage are...
| | | |
a. deductible only if they exceed 7 1/2 % of | | | | | | | |
adjusted gross income.
| | |
b. fully deductible. |
c. not deductible. |
d. partially deductible. - CORRECT ANSWER | | | |
>>>>Fully deductible. |
Since 2003, 100% of premiums paid by a sole
| | | | | | | |
proprietor and his dependents are tax deductible.
| | | | | | |
Affirming or denying coverage for a claim must be
| | | | | | | |
within how many days after proof of loss
| | | | | | | |
statements have been completed?
| | | |
a. 10
b. 21
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c. 30
d. 14 - CORRECT ANSWER >>>>21 days.
| | | | |
If more time is needed to investigate the claim,
| | | | | | | |
the insurer will notify the claimant within the 21
| | | | | | | | |
days of the need for more time and every 90 days
| | | | | | | | | | |
thereafter.
|
In Group Health Insurance, the contract is between
| | | | | | |
the...
|
a. employee and his dependents. | | |
b. employer and the employees. | | |
c. employer and the insurance company. | | | |
d. employees and the insurer. - CORRECT | | | | |
ANSWER >>>>Employer and the insurance
| | | | |
company (insurer).
| |
The employees are covered but only receive a
| | | | | | |
Certificate of Insurance stating the amount of
| | | | | | |
their coverage.
| |
Insurable risks must involve: | | |
a. certain losses only. | |
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b. certain and uncertain losses. | | |
c. gambling.
d. the possibility of loss only. - CORRECT ANSWER
| | | | | | |
>>>>The possibility of loss only. | | | |
Remember, pure risk involves the chance of loss | | | | | | |
only. If there is any chance for gain, the risk is not
| | | | | | | | | | | |
insurable. Also, if it is certain there will be a loss,
| | | | | | | | | | |
the insurer will decline coverage since it is sure to
| | | | | | | | | |
lose money.
| |
An agent is a representative of the:
| | | | | |
a. general agency system | |
b. insurance company |
c. insured
d. policy owner - CORRECT ANSWER | | | |
>>>>insurance company. |
Agents represent the insurer, brokers represent
| | | | |
the insured.
| |
What statement is TRUE regarding an agent
| | | | | |
sharing commissions?
| |
|1
LIFE ACCIDENT AND HEALTH INSURANCE EXAM
2025 ACTUAL EXAM COMPLETE 300 QUESTIONS
WITH DETAILED VERIFIED ANSWERS
The insurer is automatically reinstated by 45 days
| | | | | | |
unless the insurer rejects the insured.
| | | | | |
The law of large numbers states that...
| | | | | |
a. all losses are predictable.
| | |
b. large losses are easier to predict.
| | | | |
c. predictions become more accurate as the | | | | |
number of units being considered increase.
| | | | | |
d. small losses are predictable. - CORRECT
| | | | |
ANSWER >>>>The predictions become more
| | | | |
accurate as the number of units being considered
| | | | | | | |
increases.
|
, P | a | g |e | |
|2
The more people an insurer covers, the easier it is
| | | | | | | | |
to predict future claims based on this law. This is
| | | | | | | | | |
why Life insurance companies usually make a
| | | | | | |
profit by measuring the chance of death using a
| | | | | | | | |
mortality table.
| |
Premiums paid by sole proprietors for Individual
| | | | | |
Health Insurance coverage are...
| | | |
a. deductible only if they exceed 7 1/2 % of | | | | | | | |
adjusted gross income.
| | |
b. fully deductible. |
c. not deductible. |
d. partially deductible. - CORRECT ANSWER | | | |
>>>>Fully deductible. |
Since 2003, 100% of premiums paid by a sole
| | | | | | | |
proprietor and his dependents are tax deductible.
| | | | | | |
Affirming or denying coverage for a claim must be
| | | | | | | |
within how many days after proof of loss
| | | | | | | |
statements have been completed?
| | | |
a. 10
b. 21
, P | a | g |e | |
|3
c. 30
d. 14 - CORRECT ANSWER >>>>21 days.
| | | | |
If more time is needed to investigate the claim,
| | | | | | | |
the insurer will notify the claimant within the 21
| | | | | | | | |
days of the need for more time and every 90 days
| | | | | | | | | | |
thereafter.
|
In Group Health Insurance, the contract is between
| | | | | | |
the...
|
a. employee and his dependents. | | |
b. employer and the employees. | | |
c. employer and the insurance company. | | | |
d. employees and the insurer. - CORRECT | | | | |
ANSWER >>>>Employer and the insurance
| | | | |
company (insurer).
| |
The employees are covered but only receive a
| | | | | | |
Certificate of Insurance stating the amount of
| | | | | | |
their coverage.
| |
Insurable risks must involve: | | |
a. certain losses only. | |
, P | a | g |e | |
|4
b. certain and uncertain losses. | | |
c. gambling.
d. the possibility of loss only. - CORRECT ANSWER
| | | | | | |
>>>>The possibility of loss only. | | | |
Remember, pure risk involves the chance of loss | | | | | | |
only. If there is any chance for gain, the risk is not
| | | | | | | | | | | |
insurable. Also, if it is certain there will be a loss,
| | | | | | | | | | |
the insurer will decline coverage since it is sure to
| | | | | | | | | |
lose money.
| |
An agent is a representative of the:
| | | | | |
a. general agency system | |
b. insurance company |
c. insured
d. policy owner - CORRECT ANSWER | | | |
>>>>insurance company. |
Agents represent the insurer, brokers represent
| | | | |
the insured.
| |
What statement is TRUE regarding an agent
| | | | | |
sharing commissions?
| |
