Health Insurance
Life And Health Insurance Exam 1
Questions And Answers Latest
Update
UNIT 1: The term used to describe the individual who is covered
by the insurance is
A.insurer
B.insured
C.policyowner
D. risk - correct answers B
Which of the following is a risk?
A.A car may need to have new brakes installed after several years
of regular driving.
B.An individual may need medical attention after slipping on the
ice and falling.
C.Both are examples of risk.
D. Neither is an example of risk. - correct answers B
The estimation of future losses is more accurate when information
is from
A.a small select group
B.a large group
C.a medium-sized group
D. any size group; group size does not matter - correct answers
A
Life And Health Insurance Exam 1 Questions And Answers Latest Update
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The application of the law of large numbers enables insurers to
A.estimate the future losses of a class or group of people
B.predict the future losses of speci c individuals
C.charge higher premiums for insurance
D. calculate mortality charges - correct answers B
Which type of policy is designed to protect against the risk of
living too long?
A.Casualty
B.Life
C.Annuity
D. Medical expense - correct answers C
Which of the following is a type of insurance company owned by
its shareholders?
A. Mutual B. Stock
C. Lloyd's D. Reinsurer - correct answers B
The ZYX Insurance Company is incorporated in Alabama. While
doing business in
Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an
export insurer - correct answers B
The ZYX Insurance Company is incorporated in Mexico. While
doing business in Texas, it is
Life And Health Insurance Exam 1 Questions And Answers Latest Update
,Health Insurance
A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an
export insurer - correct answers C
Self-insurance is an example of which method of handling risk?
A. Acceptance B. Transference C. Avoidance D. Reduction - correct
answers A
Which of the following terms is used to denote insurance
companies?
A.Broker
B.Exchange C. Corporation D. Insurer - correct answers D
A social device for spreading the chance of financial loss among a
large number of people is the definition of
A.hazard
B.risk
C.insurance
D. peril - correct answers C
Which of the following risks is most likely to
be insurable?
A. George is concerned about the financial impact his
premature death would have on his family.
B. Talyn is concerned about the financial impact large betting
losses at the horse track will have on his retirement savings.
Life And Health Insurance Exam 1 Questions And Answers Latest Update
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C. John is concerned about the financial impact on his savings
when his car eventually becomes worn enough to need to be
replaced.
D. Jewel is concerned about the nancial effect losing her hat
would have on her weekly spending money. - correct answers A
Roger refuses to travel by airplane. Roger is managing the risk of
being in a plane crash by
A. reduction B. avoidance C. transference D. retention - correct
answers B
Chianna becomes injured in a car accident caused when she took
her eyes off the road to answer her cell phone. This is an example
of
A.a physical hazard
B.a moral hazard
C.a morale hazard
D. a legal hazard - correct answers C
An arrangement in which an insurer transfers part of the
insurance risk to another insurance company is known as
A.avoidance
B.fraud
C.Lloyd's associations
D. reinsurance - correct answers D
Which of the following is NOT an example of insurable interest?
Life And Health Insurance Exam 1 Questions And Answers Latest Update
Life And Health Insurance Exam 1
Questions And Answers Latest
Update
UNIT 1: The term used to describe the individual who is covered
by the insurance is
A.insurer
B.insured
C.policyowner
D. risk - correct answers B
Which of the following is a risk?
A.A car may need to have new brakes installed after several years
of regular driving.
B.An individual may need medical attention after slipping on the
ice and falling.
C.Both are examples of risk.
D. Neither is an example of risk. - correct answers B
The estimation of future losses is more accurate when information
is from
A.a small select group
B.a large group
C.a medium-sized group
D. any size group; group size does not matter - correct answers
A
Life And Health Insurance Exam 1 Questions And Answers Latest Update
,Health Insurance
The application of the law of large numbers enables insurers to
A.estimate the future losses of a class or group of people
B.predict the future losses of speci c individuals
C.charge higher premiums for insurance
D. calculate mortality charges - correct answers B
Which type of policy is designed to protect against the risk of
living too long?
A.Casualty
B.Life
C.Annuity
D. Medical expense - correct answers C
Which of the following is a type of insurance company owned by
its shareholders?
A. Mutual B. Stock
C. Lloyd's D. Reinsurer - correct answers B
The ZYX Insurance Company is incorporated in Alabama. While
doing business in
Texas, it is
A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an
export insurer - correct answers B
The ZYX Insurance Company is incorporated in Mexico. While
doing business in Texas, it is
Life And Health Insurance Exam 1 Questions And Answers Latest Update
,Health Insurance
A. adomesticinsurer B. a foreign insurer C. an alien insurer D. an
export insurer - correct answers C
Self-insurance is an example of which method of handling risk?
A. Acceptance B. Transference C. Avoidance D. Reduction - correct
answers A
Which of the following terms is used to denote insurance
companies?
A.Broker
B.Exchange C. Corporation D. Insurer - correct answers D
A social device for spreading the chance of financial loss among a
large number of people is the definition of
A.hazard
B.risk
C.insurance
D. peril - correct answers C
Which of the following risks is most likely to
be insurable?
A. George is concerned about the financial impact his
premature death would have on his family.
B. Talyn is concerned about the financial impact large betting
losses at the horse track will have on his retirement savings.
Life And Health Insurance Exam 1 Questions And Answers Latest Update
, Health Insurance
C. John is concerned about the financial impact on his savings
when his car eventually becomes worn enough to need to be
replaced.
D. Jewel is concerned about the nancial effect losing her hat
would have on her weekly spending money. - correct answers A
Roger refuses to travel by airplane. Roger is managing the risk of
being in a plane crash by
A. reduction B. avoidance C. transference D. retention - correct
answers B
Chianna becomes injured in a car accident caused when she took
her eyes off the road to answer her cell phone. This is an example
of
A.a physical hazard
B.a moral hazard
C.a morale hazard
D. a legal hazard - correct answers C
An arrangement in which an insurer transfers part of the
insurance risk to another insurance company is known as
A.avoidance
B.fraud
C.Lloyd's associations
D. reinsurance - correct answers D
Which of the following is NOT an example of insurable interest?
Life And Health Insurance Exam 1 Questions And Answers Latest Update
