Life Insurance Exam NM
Comprehensive Questions with
Verified Answers Graded A+
Whole Life - Answer: Builds cash value and remains in effect for the entire life of the insured (or
until age 100) as long as the premium is paid.
Types of whole life insurance - Answer: Continuous (straight), Limited, Single, Modified
Insurance is the transfer of: - Answer: risk
Insurance is a contract by which one seeks to protect another from - Answer: Loss
In what way can an agent demonstrate a high standard of ethics? - Answer: Putting the client's
best interests before their own
Which of the following is NOT a characteristic of an insurable risk? - Answer: The loss must be
catastrophic.
For the reported losses of an insured group to become more likely to equal the statistical
probability of loss for that particular class, the insured group must become - Answer: larger
Adverse selection is a concept best described as - Answer: Risks with higher probability of loss
seeking insurance more often than other risks.
Comprehensive Questions with
Verified Answers Graded A+
Whole Life - Answer: Builds cash value and remains in effect for the entire life of the insured (or
until age 100) as long as the premium is paid.
Types of whole life insurance - Answer: Continuous (straight), Limited, Single, Modified
Insurance is the transfer of: - Answer: risk
Insurance is a contract by which one seeks to protect another from - Answer: Loss
In what way can an agent demonstrate a high standard of ethics? - Answer: Putting the client's
best interests before their own
Which of the following is NOT a characteristic of an insurable risk? - Answer: The loss must be
catastrophic.
For the reported losses of an insured group to become more likely to equal the statistical
probability of loss for that particular class, the insured group must become - Answer: larger
Adverse selection is a concept best described as - Answer: Risks with higher probability of loss
seeking insurance more often than other risks.
