CT Life Health and Accident Exam
Questions & Answers Rated 100%
Correct!!!
A specific event that leads to loss and is often referred to as the cause or accident itself
defines which of the following CORRECT ANSWERS Peril
Insurance hazards are typically defined as conditions that increase the chance of losses
and/or damages. They can include physical attributes, moral developments and
inherited conditions. Given the definition above, which of the following would not be an
insurance hazard CORRECT ANSWERS Daily exercise
Baxter Insurance co a major insurance carrier, decided not to offer coverage on any
skydiver regardless of their experience or activity level. This is an example of what type
of risk handling method CORRECT ANSWERS Avoidance
Insurance companies often share risk with reinsurance companies that are contractually
on the hook for specific losses an individual insurance carrier may incur; however, when
an insurance carrier mistakenly approves a risk outside of agreed upon terms, the
insurance carrier must keep the risk completely without the shared protection from the
reinsurer. When an insurance company keeps all of the risk internally, it is exercising
which risk handling method CORRECT ANSWERS Retention
Risk is defined as having the potential for loss. Which of the following would an
insurance carrier not consider a risk on a life insurance application CORRECT
ANSWERS Employment as an office worker
One way to minimize the risk you would incur from a loss is to make someone or some
company responsible for that potential loss. One of the best ways to protect home
mortgage is through life insurance. By buying a life insurance policy, the insurance
company will pay your surviving beneficiary a death benefit that can cover your
mortgage if structured correctly. Making the company responsible for a loss is an
example of which risk handling method CORRECT ANSWERS Transfer
When an applicant pays premiums to an insurer and the insurer promises to pay a
death benefit in exchange, what element of a contract has taken place CORRECT
ANSWERS Consideration
An insurance contract is considered unilateral because CORRECT ANSWERS Only the
insurer is legally bound by the contract
,Insurance contracts are considered contracts of adhesion. Which statement is true of
contracts of adhesion CORRECT ANSWERS Contracts of adhesion are authored by
both the insured and insurer
All of the following are parties to a life insurance contract EXCEPT: CORRECT
ANSWERS Underwriter, Beneficiary, and Insured
Which of the following will have to meet an insurable interest requirement in orde for a
policy to issue CORRECT ANSWERS Beneficiary
In many instances the ____ and the ____ on a life insurance policy may be the same
person or entity CORRECT ANSWERS Owner, insured
The beneficiary in a life insurance policy does not have to be a person. Which of the
following can be named a beneficiary, assuming the presence of an insurable interest: a
trust, an estate, a business entity CORRECT ANSWERS All of the above
Which of the following has the rights that are stipulated in the insurance contract?
CORRECT ANSWERS Owner
Life insurance is regulated only at the federal level CORRECT ANSWERS False
Whose death will cause the insurance company to pay the benefit proceeds of the
policy CORRECT ANSWERS insured
Business owners often have a need for life insurance CORRECT ANSWERS true
If a whole life insurance policy holder needed funds for long term care expenses, which
part of the policy could they access in order to do so CORRECT ANSWERS Living
benefits
Which of the following factors does NOT have an effect on a life insurance policy's
premium calculation: occupation, health, lifestyle CORRECT ANSWERS None of the
above
The requirement that a life insurance company must keep enough cash in place to pay
claims as they arise is known as the _____ requirement CORRECT ANSWERS Capital
reserves
John makes a good living and got a life insurance policy for the benefit of his wife. He
recently experiences a life-changing event with the birth of his son. John should:
CORRECT ANSWERS Increase his life insurance policy death benefit
______ is the number one reason why people buy life insurance CORRECT ANSWERS
Income replacement
,Which of the following is typically the lowest cost type of life insurance CORRECT
ANSWERS term
Unmarried people without children do not need life insurance CORRECT ANSWERS
false
What purpose do mortality tables serve CORRECT ANSWERS Estimating how long an
individual may live
Joseph had suffered signs from early-onset diabetes several years ago, although
through better diet and exercise, he has been able to keep his condition under control.
Joseph will be considered by the life insurance company as being an CORRECT
ANSWERS Impaired risk
A standard suicide clause will prevent the payment of a death benefit if the insured
death is determined to be by suicide within wich period of time after the issuance of the
policy CORRECT ANSWERS 1-2 years
Bert is 45 years old. He is a married father of two teenage sons and is the partner in a
successful consulting business. He owns a nice house in a tight-knit suburban
community and his neighbors appreciate the improvements he's made to his lot, as it
helps maintain property values. For life insurance purposes, who would be deemed as
having an insurable interest in Bert if he were to pass away? Berts business partner,
bert's wife, berts children, berts neighbors CORRECT ANSWERS Berts business
partner, wife, and children (i, ii, iii)
How many days are typically given to a life insurance buyer as a free look CORRECT
ANSWERS 10-30 days
Some of the companies that rate insurance companies regarding their financial strength
and claims paying ability include: AM best, Fitch. Moody's, FICO CORRECT ANSWERS
AM best, Fitch, Moodys (i, ii, iii)
What is, in part, the primary purpose of insurance regulation CORRECT ANSWERS To
maintain solvency of insurance companies
Joel's primary purpose for purchasing life insurance was to pay estate taxes. therefore,
he should consider ____ life insurance CORRECT ANSWERS Permanent
Which of the following ensures that a minimum benefit amount is available for every
policy holder in the event that an insurance company cannot pay claims and the
reinsurance system fails CORRECT ANSWERS Guarantee corporation
A 35 year old client wants to put a retirement plan in place. It is not necessary to
consider life insurance needs when creating retirement plan CORRECT ANSWERS
False
, Some of the ways in which the death benefit proceeds from a life insurance policy may
be used by ones heirs include: paying off a mortgage, funding a childs future education,
paying ongoing bills such as utilities and food CORRECT ANSWERS All of the above
This type of life insurance is renewable annually and provides a level face amount
CORRECT ANSWERS Annual renewable term
A basic term life insurance policy provides a death benefit if the insured dies within a
specified period of time (10,15,20,10 years). If the client survives the term, no benefit is
paid, and no premiums are returned. What insurance rider allows for the premiums to
be paid back to the insured at the end of a specified period of time CORRECT
ANSWERS Return of premium rider
Which of the following is not a key characteristic of variable whole life insurance
CORRECT ANSWERS Cash values that are guaranteed
Jack and his wife Lyn just purchased a home with a 15 year mortgage. Wanting to make
sure that Lyn would be able to pay off the mortgage balance in the event of jack's death,
jack had a "temporary" need for life insurance. What type of policy should jack purchase
CORRECT ANSWERS Term life insurance
Which type of life insurance is considered to be more risky based on its investment
component CORRECT ANSWERS Variable life insurance
If someone has an employer sponsored group life insurance policy, they do not need
individual coverage CORRECT ANSWERS False
With group life insurance, the risk is spread across a wider number of people. This
results in higher premiums for unhealthy people and lower premiums for the healthier
participants CORRECT ANSWERS False
Group life insurance can be purchased via: employer, professional organization, alumni
association CORRECT ANSWERS All of the above
Which type of life insurance policy allows the policy holder to move funds between the
death benefit component and the savings component CORRECT ANSWERS Universal
life insurance
Jason, a healthy 25 year old, knew that he needed life insurance coverage to protect his
wife and newborn son should he pass away suddenly. However, at the present time, he
simply did not have a large budget in which to purchase such coverage. Which type of
life insurance would be best for jason's current needs CORRECT ANSWERS Term life
insurance
Questions & Answers Rated 100%
Correct!!!
A specific event that leads to loss and is often referred to as the cause or accident itself
defines which of the following CORRECT ANSWERS Peril
Insurance hazards are typically defined as conditions that increase the chance of losses
and/or damages. They can include physical attributes, moral developments and
inherited conditions. Given the definition above, which of the following would not be an
insurance hazard CORRECT ANSWERS Daily exercise
Baxter Insurance co a major insurance carrier, decided not to offer coverage on any
skydiver regardless of their experience or activity level. This is an example of what type
of risk handling method CORRECT ANSWERS Avoidance
Insurance companies often share risk with reinsurance companies that are contractually
on the hook for specific losses an individual insurance carrier may incur; however, when
an insurance carrier mistakenly approves a risk outside of agreed upon terms, the
insurance carrier must keep the risk completely without the shared protection from the
reinsurer. When an insurance company keeps all of the risk internally, it is exercising
which risk handling method CORRECT ANSWERS Retention
Risk is defined as having the potential for loss. Which of the following would an
insurance carrier not consider a risk on a life insurance application CORRECT
ANSWERS Employment as an office worker
One way to minimize the risk you would incur from a loss is to make someone or some
company responsible for that potential loss. One of the best ways to protect home
mortgage is through life insurance. By buying a life insurance policy, the insurance
company will pay your surviving beneficiary a death benefit that can cover your
mortgage if structured correctly. Making the company responsible for a loss is an
example of which risk handling method CORRECT ANSWERS Transfer
When an applicant pays premiums to an insurer and the insurer promises to pay a
death benefit in exchange, what element of a contract has taken place CORRECT
ANSWERS Consideration
An insurance contract is considered unilateral because CORRECT ANSWERS Only the
insurer is legally bound by the contract
,Insurance contracts are considered contracts of adhesion. Which statement is true of
contracts of adhesion CORRECT ANSWERS Contracts of adhesion are authored by
both the insured and insurer
All of the following are parties to a life insurance contract EXCEPT: CORRECT
ANSWERS Underwriter, Beneficiary, and Insured
Which of the following will have to meet an insurable interest requirement in orde for a
policy to issue CORRECT ANSWERS Beneficiary
In many instances the ____ and the ____ on a life insurance policy may be the same
person or entity CORRECT ANSWERS Owner, insured
The beneficiary in a life insurance policy does not have to be a person. Which of the
following can be named a beneficiary, assuming the presence of an insurable interest: a
trust, an estate, a business entity CORRECT ANSWERS All of the above
Which of the following has the rights that are stipulated in the insurance contract?
CORRECT ANSWERS Owner
Life insurance is regulated only at the federal level CORRECT ANSWERS False
Whose death will cause the insurance company to pay the benefit proceeds of the
policy CORRECT ANSWERS insured
Business owners often have a need for life insurance CORRECT ANSWERS true
If a whole life insurance policy holder needed funds for long term care expenses, which
part of the policy could they access in order to do so CORRECT ANSWERS Living
benefits
Which of the following factors does NOT have an effect on a life insurance policy's
premium calculation: occupation, health, lifestyle CORRECT ANSWERS None of the
above
The requirement that a life insurance company must keep enough cash in place to pay
claims as they arise is known as the _____ requirement CORRECT ANSWERS Capital
reserves
John makes a good living and got a life insurance policy for the benefit of his wife. He
recently experiences a life-changing event with the birth of his son. John should:
CORRECT ANSWERS Increase his life insurance policy death benefit
______ is the number one reason why people buy life insurance CORRECT ANSWERS
Income replacement
,Which of the following is typically the lowest cost type of life insurance CORRECT
ANSWERS term
Unmarried people without children do not need life insurance CORRECT ANSWERS
false
What purpose do mortality tables serve CORRECT ANSWERS Estimating how long an
individual may live
Joseph had suffered signs from early-onset diabetes several years ago, although
through better diet and exercise, he has been able to keep his condition under control.
Joseph will be considered by the life insurance company as being an CORRECT
ANSWERS Impaired risk
A standard suicide clause will prevent the payment of a death benefit if the insured
death is determined to be by suicide within wich period of time after the issuance of the
policy CORRECT ANSWERS 1-2 years
Bert is 45 years old. He is a married father of two teenage sons and is the partner in a
successful consulting business. He owns a nice house in a tight-knit suburban
community and his neighbors appreciate the improvements he's made to his lot, as it
helps maintain property values. For life insurance purposes, who would be deemed as
having an insurable interest in Bert if he were to pass away? Berts business partner,
bert's wife, berts children, berts neighbors CORRECT ANSWERS Berts business
partner, wife, and children (i, ii, iii)
How many days are typically given to a life insurance buyer as a free look CORRECT
ANSWERS 10-30 days
Some of the companies that rate insurance companies regarding their financial strength
and claims paying ability include: AM best, Fitch. Moody's, FICO CORRECT ANSWERS
AM best, Fitch, Moodys (i, ii, iii)
What is, in part, the primary purpose of insurance regulation CORRECT ANSWERS To
maintain solvency of insurance companies
Joel's primary purpose for purchasing life insurance was to pay estate taxes. therefore,
he should consider ____ life insurance CORRECT ANSWERS Permanent
Which of the following ensures that a minimum benefit amount is available for every
policy holder in the event that an insurance company cannot pay claims and the
reinsurance system fails CORRECT ANSWERS Guarantee corporation
A 35 year old client wants to put a retirement plan in place. It is not necessary to
consider life insurance needs when creating retirement plan CORRECT ANSWERS
False
, Some of the ways in which the death benefit proceeds from a life insurance policy may
be used by ones heirs include: paying off a mortgage, funding a childs future education,
paying ongoing bills such as utilities and food CORRECT ANSWERS All of the above
This type of life insurance is renewable annually and provides a level face amount
CORRECT ANSWERS Annual renewable term
A basic term life insurance policy provides a death benefit if the insured dies within a
specified period of time (10,15,20,10 years). If the client survives the term, no benefit is
paid, and no premiums are returned. What insurance rider allows for the premiums to
be paid back to the insured at the end of a specified period of time CORRECT
ANSWERS Return of premium rider
Which of the following is not a key characteristic of variable whole life insurance
CORRECT ANSWERS Cash values that are guaranteed
Jack and his wife Lyn just purchased a home with a 15 year mortgage. Wanting to make
sure that Lyn would be able to pay off the mortgage balance in the event of jack's death,
jack had a "temporary" need for life insurance. What type of policy should jack purchase
CORRECT ANSWERS Term life insurance
Which type of life insurance is considered to be more risky based on its investment
component CORRECT ANSWERS Variable life insurance
If someone has an employer sponsored group life insurance policy, they do not need
individual coverage CORRECT ANSWERS False
With group life insurance, the risk is spread across a wider number of people. This
results in higher premiums for unhealthy people and lower premiums for the healthier
participants CORRECT ANSWERS False
Group life insurance can be purchased via: employer, professional organization, alumni
association CORRECT ANSWERS All of the above
Which type of life insurance policy allows the policy holder to move funds between the
death benefit component and the savings component CORRECT ANSWERS Universal
life insurance
Jason, a healthy 25 year old, knew that he needed life insurance coverage to protect his
wife and newborn son should he pass away suddenly. However, at the present time, he
simply did not have a large budget in which to purchase such coverage. Which type of
life insurance would be best for jason's current needs CORRECT ANSWERS Term life
insurance
