Life, Health and Accident Questions
latest ersion 2025/2026.
It is the distribution of successes of funds accumulated by the insurer and participating policies.
Which of the following statements regarding a life insurance policy Dividened is true?
Losses due to fraud are eliminated. Which of the following is not a benefit of insurance?
Participating John owns an insurance policy that gives him the right to share and the insurer's
surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy dividends.
What is the participating life insurance policy?
Marketing One important function of an insurance company is to identify and sell potential
customers which of these BEST describes this function?
Mutual InsurerAn insurer on by its policyholders is called a
Demutualization When a mutual insurer becomes a stock company the process is called?
Increases the unknown premium reserve Which is not a characteristic for reinsurance?
Capitive insurer Which of the following is an insurer established by a parent company for
the purpose of ensuring the parent companies loss exposures?
Risk is eliminated Which of the following is a type of insurance where an insurer transfer
loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and set
appropriate premiums And insured having a large number of similar exposure unit it's considered
important because.
Speculative risk Which of the following is a situation where there is a possibility of either
lost or a gain?
Per risk is the only insurable risk Which of these statements correctly describes risk?
Probability that an event will occur Which of the following is not considered to be a definition
of the term "loss"?
Lost must be castastrophic Which of the following is not an element of an insurable risk?
A condition that may increase the likelihood of a loss occurring. A hazard can be best
described as.
Moral Hazard Which of the following describes the increase in the probability of a loss due to
ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. Moral hazard is
described as the
Loss ExposureWhich of the following is considered to be any situation that has the potential for
loss?
Principle of indemnity Restoring an insured to the same condition as before a loss is
known as.
Law of Large Numbers Which of the following best describes the statement? "the more
times and event is repeating, the more predicting the outcome becomes?"
Probability of loss is a unknown All of the following is a circumstance must be met for loss
retention to be an effective risk management technique except?
Pure Risk A situation in which there is only a chance of loss or no loss is a?
Probability of loss Which of the following is not required in the content of a policy?
,indemnity Restoring and insured to the same condition as before a loss is an example of the
principal of?
Equal consideration is required between the involved parties Which of the following is not
a requirement of a contract?
Rescind a policy If a material warranty violation on the part of the insurance is found, what
recourse does an insurer have?
One party is restored to the same financial position the party was in before the loss occurred
Which of the following statements correctly describes a contract of indemnity?
Indemnity Reasonably necessarily as a currently described with the statement " insureds are
entitled to recover and amount not greater than the amount of the lights? "
A contract may be accepted/rejected by the insured Which statement is correct when describing
a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable promise. And unliteral
contract is one which?
An offer and acceptance of the contract terms A contract requires.
Make whole What does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. Which of the following
statements about aleatory contract is not true?
Materiality of concealment The importance of a representation is demonstrated in what rule?
Fiduciary When handling premiums for insurance, and each and is acting in which capacity?
Rescinding the contract Which course of action is ensuring title II when deliberate
concealment is committed by the insured?
The policy's face amount And a life insurance policies limit of liability would be.
Require a high premium payable at each renewal In a renewable term life insurance policy the
contract will usually.
Decreasing term Which of the following type of life insurance is normally associated with a
mortgage loan?
Non-medical Which of the following is a life insurance policy that does not require a physical
exam?
Mortgage Redemption Scott has just purchased a new house. He is now shopping for a life
insurance policy that provides a death benefit that matches the protecting a death benefit that
matches the project is outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including Which of the following statements
do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) And insurance policy Braden after 1988 the fails to
pass to seven- pay test is known as.
Verbal Life An insurance policy where the insured can choose where the cash value can be
invested is called
Applicants are not requested to answer medical questions on the application Which of the
following is not a true description of a non-medical life insurance?
Joint Life Policy Tom is shopping for a policy that covers two people I will pay the face
amount ONLY when the first person dies the type of life policy he is looking for is called a
period
Renewable Term Lynn owns a life policy the guaranteed the right to renew the policy each
year, regardless of health, but an increased premium, what kind of policy is this?
, Modify premium, ordinary life, single premium What is the proper order of initial life
insurance premiums from lowest to highest?
Second-to-die policy John and Mary having a handicapped child that is financially dependent
upon them. The death of one of the parents will not be financially disastrous, however the death
of both likely would be. Which policy would best suited for them?
10% Mark, age 45 has a modified endowment contract what is the tax penalty for taking a loan
against his policy prior to age 59 1/2?
Conversion of child's coverage to permanent insurance regarding evidence of insurability.Which
of the following is not true regarding a family policy that covers children?
Currently Insured Which Social Security said it does a worker with 6 quarter of coverage
during the last 13 quarter period have?
endowment insurance The life-insurance policy that pays the face amount if the insured survive
to a specific period of time it's called.
12 months How long is a person expected to be disabled in order to receive Social Security
disability benefits?
10% And a modified endowment contract, the penalty tax imposed a premature withdraws is.
Benefits are designed to replace the entire amount of the workers earnings Which statement is
not true regarding Social Security benefits?
Universal Life Insurance Which of the following types of life insurance combined the
savings element along with a flexible premium option?
Without producing proof of insurability A renewable term life insurance policy allows the
policy owner the right to renew the policy.
A nonforfeiture option can be used to insurance the death benefit All of these are valid options
for an adjustable life policy EXCEPT ?
Accelerated Death Benefits Which provision will pay a portion of the death benefit prior to the
insured's death due to a serious illness?
Purchase additional coverage with no evidence of insurability required What does the
guaranteed insurability option alarm and insured to do?
Mike has option of using his cash value to purchase a reduced amount of pay-up whole life
insurance Mike and Ike I 30 years old identical twins. Both are in excellent health. Each
broker purchases in life policy that has a $750 annual premium. Mike buy a 10 year renewable
term policy. Ike purchase a whole life policy. All of the following statements are true EXCEPT.
Restatement provisionAfter the policy has lapsed, which promotion allows the insured to
continue coverage?
12/15th of the policy's face amount Jerry is an insured who understand his age and his life
insurance application, paying $12 per thousand dollars of insurance instead of $15 per $1000. If
he dies, how will the adjusted death benefit be calculated?
Dividend Schedule Which of the following does a policy owner NOT have a right to change?
A return of excess premium and not taxable How is life insurance policy dividends equally
defined?
Insured becomes totally disable When does the life insurance policy's waiver of premium
take affect?
Extended Term Which of the following is not a common life insurance policy rider?
waiver-of-premium provision Bruce is involved in an accident and becomes totally and
permanently disable. His insurance policy continues in force without payment of further
premiums. Which policy promotion is responsible for this?
latest ersion 2025/2026.
It is the distribution of successes of funds accumulated by the insurer and participating policies.
Which of the following statements regarding a life insurance policy Dividened is true?
Losses due to fraud are eliminated. Which of the following is not a benefit of insurance?
Participating John owns an insurance policy that gives him the right to share and the insurer's
surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy dividends.
What is the participating life insurance policy?
Marketing One important function of an insurance company is to identify and sell potential
customers which of these BEST describes this function?
Mutual InsurerAn insurer on by its policyholders is called a
Demutualization When a mutual insurer becomes a stock company the process is called?
Increases the unknown premium reserve Which is not a characteristic for reinsurance?
Capitive insurer Which of the following is an insurer established by a parent company for
the purpose of ensuring the parent companies loss exposures?
Risk is eliminated Which of the following is a type of insurance where an insurer transfer
loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and set
appropriate premiums And insured having a large number of similar exposure unit it's considered
important because.
Speculative risk Which of the following is a situation where there is a possibility of either
lost or a gain?
Per risk is the only insurable risk Which of these statements correctly describes risk?
Probability that an event will occur Which of the following is not considered to be a definition
of the term "loss"?
Lost must be castastrophic Which of the following is not an element of an insurable risk?
A condition that may increase the likelihood of a loss occurring. A hazard can be best
described as.
Moral Hazard Which of the following describes the increase in the probability of a loss due to
ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. Moral hazard is
described as the
Loss ExposureWhich of the following is considered to be any situation that has the potential for
loss?
Principle of indemnity Restoring an insured to the same condition as before a loss is
known as.
Law of Large Numbers Which of the following best describes the statement? "the more
times and event is repeating, the more predicting the outcome becomes?"
Probability of loss is a unknown All of the following is a circumstance must be met for loss
retention to be an effective risk management technique except?
Pure Risk A situation in which there is only a chance of loss or no loss is a?
Probability of loss Which of the following is not required in the content of a policy?
,indemnity Restoring and insured to the same condition as before a loss is an example of the
principal of?
Equal consideration is required between the involved parties Which of the following is not
a requirement of a contract?
Rescind a policy If a material warranty violation on the part of the insurance is found, what
recourse does an insurer have?
One party is restored to the same financial position the party was in before the loss occurred
Which of the following statements correctly describes a contract of indemnity?
Indemnity Reasonably necessarily as a currently described with the statement " insureds are
entitled to recover and amount not greater than the amount of the lights? "
A contract may be accepted/rejected by the insured Which statement is correct when describing
a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable promise. And unliteral
contract is one which?
An offer and acceptance of the contract terms A contract requires.
Make whole What does the insurance term "indemnity" referred to?
The insured and insured contribution equally to the contract. Which of the following
statements about aleatory contract is not true?
Materiality of concealment The importance of a representation is demonstrated in what rule?
Fiduciary When handling premiums for insurance, and each and is acting in which capacity?
Rescinding the contract Which course of action is ensuring title II when deliberate
concealment is committed by the insured?
The policy's face amount And a life insurance policies limit of liability would be.
Require a high premium payable at each renewal In a renewable term life insurance policy the
contract will usually.
Decreasing term Which of the following type of life insurance is normally associated with a
mortgage loan?
Non-medical Which of the following is a life insurance policy that does not require a physical
exam?
Mortgage Redemption Scott has just purchased a new house. He is now shopping for a life
insurance policy that provides a death benefit that matches the protecting a death benefit that
matches the project is outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including Which of the following statements
do not apply to child coverage in a family policy?
Modified Endowment Contract (MEC) And insurance policy Braden after 1988 the fails to
pass to seven- pay test is known as.
Verbal Life An insurance policy where the insured can choose where the cash value can be
invested is called
Applicants are not requested to answer medical questions on the application Which of the
following is not a true description of a non-medical life insurance?
Joint Life Policy Tom is shopping for a policy that covers two people I will pay the face
amount ONLY when the first person dies the type of life policy he is looking for is called a
period
Renewable Term Lynn owns a life policy the guaranteed the right to renew the policy each
year, regardless of health, but an increased premium, what kind of policy is this?
, Modify premium, ordinary life, single premium What is the proper order of initial life
insurance premiums from lowest to highest?
Second-to-die policy John and Mary having a handicapped child that is financially dependent
upon them. The death of one of the parents will not be financially disastrous, however the death
of both likely would be. Which policy would best suited for them?
10% Mark, age 45 has a modified endowment contract what is the tax penalty for taking a loan
against his policy prior to age 59 1/2?
Conversion of child's coverage to permanent insurance regarding evidence of insurability.Which
of the following is not true regarding a family policy that covers children?
Currently Insured Which Social Security said it does a worker with 6 quarter of coverage
during the last 13 quarter period have?
endowment insurance The life-insurance policy that pays the face amount if the insured survive
to a specific period of time it's called.
12 months How long is a person expected to be disabled in order to receive Social Security
disability benefits?
10% And a modified endowment contract, the penalty tax imposed a premature withdraws is.
Benefits are designed to replace the entire amount of the workers earnings Which statement is
not true regarding Social Security benefits?
Universal Life Insurance Which of the following types of life insurance combined the
savings element along with a flexible premium option?
Without producing proof of insurability A renewable term life insurance policy allows the
policy owner the right to renew the policy.
A nonforfeiture option can be used to insurance the death benefit All of these are valid options
for an adjustable life policy EXCEPT ?
Accelerated Death Benefits Which provision will pay a portion of the death benefit prior to the
insured's death due to a serious illness?
Purchase additional coverage with no evidence of insurability required What does the
guaranteed insurability option alarm and insured to do?
Mike has option of using his cash value to purchase a reduced amount of pay-up whole life
insurance Mike and Ike I 30 years old identical twins. Both are in excellent health. Each
broker purchases in life policy that has a $750 annual premium. Mike buy a 10 year renewable
term policy. Ike purchase a whole life policy. All of the following statements are true EXCEPT.
Restatement provisionAfter the policy has lapsed, which promotion allows the insured to
continue coverage?
12/15th of the policy's face amount Jerry is an insured who understand his age and his life
insurance application, paying $12 per thousand dollars of insurance instead of $15 per $1000. If
he dies, how will the adjusted death benefit be calculated?
Dividend Schedule Which of the following does a policy owner NOT have a right to change?
A return of excess premium and not taxable How is life insurance policy dividends equally
defined?
Insured becomes totally disable When does the life insurance policy's waiver of premium
take affect?
Extended Term Which of the following is not a common life insurance policy rider?
waiver-of-premium provision Bruce is involved in an accident and becomes totally and
permanently disable. His insurance policy continues in force without payment of further
premiums. Which policy promotion is responsible for this?
