MICHIGAN LIFE AND HEALTH INSURANCE
EXAM 2026 VERIFIED QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS A+
◉ Risk. Answer: Is the uncertainty or chance of a loss occurring
◉ What type of risk is insurable?. Answer: Pure risk-can only result in a
loss or no chance
◉ Hazards. Answer: Conditions or situations that increase the
probability of an insured loss occurring i.e scuba diving, unhealthy
lifestyle ect
◉ Perils. Answer: Causes of loss
◉ Life insurance peril. Answer: Insures against the financial loss caused
by premature death
◉ Health Insurance peril. Answer: Insures against the medical expenses
and/or loss of income caused by the insured's sickness or accidental
injury
◉ Property insurance peril. Answer: insures against the loss of physical
property or the loss of income producing abilities
, ◉ Casualty insurance peril. Answer: insures against the loss and/or
damage of property and resulting liabilities
◉ Loss. Answer: the reduction, decrease, or disappearance of value of
the person or property
◉ Methods of handling risk. Answer: Avoidance
Retention
Sharing
Reduction
Transfer
◉ Risk avoidance. Answer: eliminated exposure to loss i.e never going
on an airplane
◉ Risk Retention. Answer: The planned assumption of risk through the
use of deductibles, co-payments, or self insurance (when the insured
accepts responsibility for the loss before the insurance company pays)
◉ The purpose of risk retention. Answer: 1.) To reduce expenses and
improve cash flow
2.) To increase control of claim reserving and claims settlements
EXAM 2026 VERIFIED QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS A+
◉ Risk. Answer: Is the uncertainty or chance of a loss occurring
◉ What type of risk is insurable?. Answer: Pure risk-can only result in a
loss or no chance
◉ Hazards. Answer: Conditions or situations that increase the
probability of an insured loss occurring i.e scuba diving, unhealthy
lifestyle ect
◉ Perils. Answer: Causes of loss
◉ Life insurance peril. Answer: Insures against the financial loss caused
by premature death
◉ Health Insurance peril. Answer: Insures against the medical expenses
and/or loss of income caused by the insured's sickness or accidental
injury
◉ Property insurance peril. Answer: insures against the loss of physical
property or the loss of income producing abilities
, ◉ Casualty insurance peril. Answer: insures against the loss and/or
damage of property and resulting liabilities
◉ Loss. Answer: the reduction, decrease, or disappearance of value of
the person or property
◉ Methods of handling risk. Answer: Avoidance
Retention
Sharing
Reduction
Transfer
◉ Risk avoidance. Answer: eliminated exposure to loss i.e never going
on an airplane
◉ Risk Retention. Answer: The planned assumption of risk through the
use of deductibles, co-payments, or self insurance (when the insured
accepts responsibility for the loss before the insurance company pays)
◉ The purpose of risk retention. Answer: 1.) To reduce expenses and
improve cash flow
2.) To increase control of claim reserving and claims settlements
