1
LI
FE&HEALTHI NSURANCEEXAM
PREP|VERI
FIEDQUESTI ONS&
CORRECTANSWERS| LATESTA+
GRADE|2025/2026EDITION
Conceptofi
nsurance-ANSWER✓✓The
t
ransf
erofri
skfromonepart
ytoanot
her
t
hroughalegalcontr
act
.
LawofLargeNumber
s-ANSWER✓✓The
l
argert
henumberofr
isksi
nsuredinthe
sameri
skpool
;themorepr
edictabl
elosses
become.
Peri
l-ANSWER✓✓Ani mmedi
ate,
speci
fi
c
eventt
hatcaus
esal
oss
.
,2
Loss-ANSWER✓✓Anuni nt
ended,
unfor
eseenreduct
ion,
ordest
ruct
ionof
fi
nanci
aloreconomicval
ue.
Hazard-ANSWER✓✓Cr eat
esani
ncr
eas
ed
possi
bil
i
tyt
hataper
il
(acauseofal
oss
)wil
l
act
uall
yoccur
.
Occurr
ence-ANSWER✓✓I
sanyev
entt
hat
causesalos
s.
Ri
sk-ANSWER✓✓Ri s
kisdef
inedas
t
hepot
ent
i
aloruncer
tai
ntyf
orl
oss.
Specul
ati
ver
is
k-ANSWER✓✓As
it
uat
i
oni
n
,3
whi
chei
therpr
ofi
torl
ossi
spos
sibl
e,not
i
nsur
ed.
I
ndustr
ial
li
fei
nsurance-ANSWER
✓✓Issuesverysmallfaceamount s,
suchas
$1,
000or$2,000.Premi umsar epai
dweekl
y
andcoll
ect
edbydebi tagent s
.Theywere
desi
gnedforbur
ialcov erage.
Ordi
naryli
feins
urance-ANSWER✓✓Li f
e
i
nsuranceofcommer ci
alcompaniesnot
i
ssuedont heweeklypr
emi umbas i
s.I
ti
s
madeupofs ever
alt
ypesofindi
vidual
li
fe
i
nsurance,suchastemporary(t
erm),
permanent(whole)
.
Gr
oupl
i
fei
nsur
ance-ANSWER
, 4
✓✓I nsurancewrit
tenformember sofa
group, s
uchasapl aceofempl oyment,
associati
on,oraunion.Cov erageisprovided
tothemember softhatgroupunderone
mas t
ercont r
act.
Thegr oupi sunderwrit
ten
asawhol e,
notoneachi ndividualmember .
Oneoft hebenefit
sofgr oupl i
fecoverageis
usuall
ythereisnoev i
denceofi nsurabil
i
ty
requir
ed.
Termlif
einsur
ance-ANSWER✓✓Li f
e
i
nsurancethatpaysadeathbenefi
ti
fthe
poli
cyhol
derdieswit
hinaspeci
fi
cti
meper i
od
buthasnor emaini
ngval
ueattheendofthi
s
ti
me.
Whol
eli
fei
nsur
ance-ANSWER
✓✓Someti
mescall
edst
rai
ghtl
i
fei
nsur
ance
LI
FE&HEALTHI NSURANCEEXAM
PREP|VERI
FIEDQUESTI ONS&
CORRECTANSWERS| LATESTA+
GRADE|2025/2026EDITION
Conceptofi
nsurance-ANSWER✓✓The
t
ransf
erofri
skfromonepart
ytoanot
her
t
hroughalegalcontr
act
.
LawofLargeNumber
s-ANSWER✓✓The
l
argert
henumberofr
isksi
nsuredinthe
sameri
skpool
;themorepr
edictabl
elosses
become.
Peri
l-ANSWER✓✓Ani mmedi
ate,
speci
fi
c
eventt
hatcaus
esal
oss
.
,2
Loss-ANSWER✓✓Anuni nt
ended,
unfor
eseenreduct
ion,
ordest
ruct
ionof
fi
nanci
aloreconomicval
ue.
Hazard-ANSWER✓✓Cr eat
esani
ncr
eas
ed
possi
bil
i
tyt
hataper
il
(acauseofal
oss
)wil
l
act
uall
yoccur
.
Occurr
ence-ANSWER✓✓I
sanyev
entt
hat
causesalos
s.
Ri
sk-ANSWER✓✓Ri s
kisdef
inedas
t
hepot
ent
i
aloruncer
tai
ntyf
orl
oss.
Specul
ati
ver
is
k-ANSWER✓✓As
it
uat
i
oni
n
,3
whi
chei
therpr
ofi
torl
ossi
spos
sibl
e,not
i
nsur
ed.
I
ndustr
ial
li
fei
nsurance-ANSWER
✓✓Issuesverysmallfaceamount s,
suchas
$1,
000or$2,000.Premi umsar epai
dweekl
y
andcoll
ect
edbydebi tagent s
.Theywere
desi
gnedforbur
ialcov erage.
Ordi
naryli
feins
urance-ANSWER✓✓Li f
e
i
nsuranceofcommer ci
alcompaniesnot
i
ssuedont heweeklypr
emi umbas i
s.I
ti
s
madeupofs ever
alt
ypesofindi
vidual
li
fe
i
nsurance,suchastemporary(t
erm),
permanent(whole)
.
Gr
oupl
i
fei
nsur
ance-ANSWER
, 4
✓✓I nsurancewrit
tenformember sofa
group, s
uchasapl aceofempl oyment,
associati
on,oraunion.Cov erageisprovided
tothemember softhatgroupunderone
mas t
ercont r
act.
Thegr oupi sunderwrit
ten
asawhol e,
notoneachi ndividualmember .
Oneoft hebenefit
sofgr oupl i
fecoverageis
usuall
ythereisnoev i
denceofi nsurabil
i
ty
requir
ed.
Termlif
einsur
ance-ANSWER✓✓Li f
e
i
nsurancethatpaysadeathbenefi
ti
fthe
poli
cyhol
derdieswit
hinaspeci
fi
cti
meper i
od
buthasnor emaini
ngval
ueattheendofthi
s
ti
me.
Whol
eli
fei
nsur
ance-ANSWER
✓✓Someti
mescall
edst
rai
ghtl
i
fei
nsur
ance
