New Mexico Life And Accident Health And Exams Questions And Correct
Answers
1. What is Risk? The chance of something bad happening.
2. What is a Peril? The thing that causes the bad event.
3. What are the 3 types of
haz- ards? Physical, Moral, and Morale.
4. How does insurance help
peo- ple? It transfers big
risks to an insurer.
5. What is the purpose of
under- writing?
To evaluate risk and decide eligibility for insurance.
6. What is the Medical
Informa- tion Bureau
(MIB)?
A group that collects health info to prevent fraud.
7. What happens if you lie on
an application?
Your policy might be canceled, or claims denied.
8. What is HIPAA's main role? Protects private health information.
9. What is a Beneficiary? The person who gets the money from the policy.
10. What does Insurable
Interest mean? You must have a valid reason to insure someone.
11. Why do people buy life
insur- ance? To help their family pay for expenses, debts, or future
needs
12. Who is the Policyowner? The person who controls and pays for the insurance.
13. What is Term Life Insurance? Insurance for a set period with no savings.
14. What is Whole Life Insurance? Permanent insurance with cash value savings.
1/
7
, new mexico life and accident health and exams
questions
Study online at https://quizlet.com/_g3jcij
15. What is Universal Life
Insur- ance? Flexible premiums and benefits.
16. What is a Life Insurance Rider? An add-on for extra benAn extra feature you can
add to your
life insuranceefits or coverage.
17. What Does the Waiver of
Pre- mium Rider Do? Stops premiums if you're disabled.
18. What is an Accidental
Death Benefit Rider? Pays extra if you die in an accident.
19. Why Add a Long-Term
Care Rider?
Helps pay for care when you can't do daily activities.
20. : What is a Life Insurance
Rid- er?
21. What does the Waiver of An add-on for extra benefits or coverage.
Pre- mium Rider do?
Stops premium payments if you're disabled.
22. What does the Long-Term Care Costs of nursing home or in-home care.
Rider cover?
23. What is a Lump Sum
Settle- ment Option? Money is given all at once to beneficiaries.
24. What is the Cash
Surrender Option? Cancel the policy and take the cash value.
25. How can Policy Dividends
be used?
Cash payment, reduce premiums, or buy more
insurance.
26. Payments made for the rest of the beneficiary's life.
2/
8
Answers
1. What is Risk? The chance of something bad happening.
2. What is a Peril? The thing that causes the bad event.
3. What are the 3 types of
haz- ards? Physical, Moral, and Morale.
4. How does insurance help
peo- ple? It transfers big
risks to an insurer.
5. What is the purpose of
under- writing?
To evaluate risk and decide eligibility for insurance.
6. What is the Medical
Informa- tion Bureau
(MIB)?
A group that collects health info to prevent fraud.
7. What happens if you lie on
an application?
Your policy might be canceled, or claims denied.
8. What is HIPAA's main role? Protects private health information.
9. What is a Beneficiary? The person who gets the money from the policy.
10. What does Insurable
Interest mean? You must have a valid reason to insure someone.
11. Why do people buy life
insur- ance? To help their family pay for expenses, debts, or future
needs
12. Who is the Policyowner? The person who controls and pays for the insurance.
13. What is Term Life Insurance? Insurance for a set period with no savings.
14. What is Whole Life Insurance? Permanent insurance with cash value savings.
1/
7
, new mexico life and accident health and exams
questions
Study online at https://quizlet.com/_g3jcij
15. What is Universal Life
Insur- ance? Flexible premiums and benefits.
16. What is a Life Insurance Rider? An add-on for extra benAn extra feature you can
add to your
life insuranceefits or coverage.
17. What Does the Waiver of
Pre- mium Rider Do? Stops premiums if you're disabled.
18. What is an Accidental
Death Benefit Rider? Pays extra if you die in an accident.
19. Why Add a Long-Term
Care Rider?
Helps pay for care when you can't do daily activities.
20. : What is a Life Insurance
Rid- er?
21. What does the Waiver of An add-on for extra benefits or coverage.
Pre- mium Rider do?
Stops premium payments if you're disabled.
22. What does the Long-Term Care Costs of nursing home or in-home care.
Rider cover?
23. What is a Lump Sum
Settle- ment Option? Money is given all at once to beneficiaries.
24. What is the Cash
Surrender Option? Cancel the policy and take the cash value.
25. How can Policy Dividends
be used?
Cash payment, reduce premiums, or buy more
insurance.
26. Payments made for the rest of the beneficiary's life.
2/
8
