Life & Health
Exam
Questions
and Answers
,Life & Health Exam Questions and Answers
Peril - If a fire causes damage to a building, the fire is a...
Reduce - Wearing a seatbelt in a car is an example of which method of managing risk?
Morale - Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents
are insured, so there is no reason to worry. Which type of hazard is this an example of?
Foreign - An insurance company incorporated in Wisconsin and conducting business in Wisconsin is
known as a domestic company. What kind of company are they considered if they do business in
Minnesota?
B. A stock company is a participating company - All of the following statements about a stock insurance
company are true EXCEPT
A. A stock company sells stock to stockholders
B. A stock company is a participating company
C. A stock company is a nonparticipating company
D. A stock company has shareholders
The law of large numbers - What do insurance companies use to help predict how many losses will occur
in a group or class of individuals?
A certificate of authority - States require companies to have a license to sell insurance in the state. The
license is called...
Apparent authority - Carl accepts the initial premium when he sells an insurance policy and he sends this
to the insurance company along with the application. Which authority represents what others believe
his power is by actions taken?
,Principal - Agency is a relationship in which one person is authorized to represent and act for another
person or a corporation. In insurance, the insurance agent acts on behalf of
C. Direct response - Which of the following types of advertising does not involved an agent and is
conducted through the mail, by advertisements in newspapers and magazines, on television, and radio
or through the internet?
A. Direct writing
B. Captive agency system
C. Direct response
D. Cold calling
C. A captive agent - Which of the following individuals represent only one insurance company?
A. An independent agent
B. A general agent
C. A captive agent
D. A managing general agent
C. A contract - Which of the following terms describes a legal agreement between two competent
parties that promises a certain performance in exchange for a certain consideration?
A. An offer
B. An acceptance
C. A contract
D. A consideration
D. Unilateral - Which one of the following is not 1 of the 4 elements of a legal contract?
A. Offer
, B. Acceptance
C. Legal Purpose
D. Unilateral
Representation - Jill is filling out an insurance application with information that she believes to be true.
The information that she is providing is considered a...
Warranty - A guarantee that something is true is a...
D. a person who commits fraud is subject to imprisonmnet for up to 25 years - All of the following
statements regarding fraud and false statements are correct EXCEPT:
A. a person who commits fraud is subject to a fine
B. a person who commits fraud is subject imprisonment for up to 10 years
C. a person who commits fraud is subject to both a fine and imprisonmnet for up to 10 years
D. a person who commits fraud is subject to imprisonmnet for up to 25 years
Insurance - What is a contract or device for transferring risk from a person, business, or organization to
an insurance company?
D. The chance your house may burn down - Which of the following represents a pure risk?
A. A poker game
B. Gambling in the stock market
C. Investing in a new business
D. The chance your house may burn down
Morale - Suzanne regularly leaves her side door unlocked when she leaves for work. One afternoon, a
thief entered her apartment and stole all of her jewelry. What was the hazard in this example?
Exam
Questions
and Answers
,Life & Health Exam Questions and Answers
Peril - If a fire causes damage to a building, the fire is a...
Reduce - Wearing a seatbelt in a car is an example of which method of managing risk?
Morale - Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents
are insured, so there is no reason to worry. Which type of hazard is this an example of?
Foreign - An insurance company incorporated in Wisconsin and conducting business in Wisconsin is
known as a domestic company. What kind of company are they considered if they do business in
Minnesota?
B. A stock company is a participating company - All of the following statements about a stock insurance
company are true EXCEPT
A. A stock company sells stock to stockholders
B. A stock company is a participating company
C. A stock company is a nonparticipating company
D. A stock company has shareholders
The law of large numbers - What do insurance companies use to help predict how many losses will occur
in a group or class of individuals?
A certificate of authority - States require companies to have a license to sell insurance in the state. The
license is called...
Apparent authority - Carl accepts the initial premium when he sells an insurance policy and he sends this
to the insurance company along with the application. Which authority represents what others believe
his power is by actions taken?
,Principal - Agency is a relationship in which one person is authorized to represent and act for another
person or a corporation. In insurance, the insurance agent acts on behalf of
C. Direct response - Which of the following types of advertising does not involved an agent and is
conducted through the mail, by advertisements in newspapers and magazines, on television, and radio
or through the internet?
A. Direct writing
B. Captive agency system
C. Direct response
D. Cold calling
C. A captive agent - Which of the following individuals represent only one insurance company?
A. An independent agent
B. A general agent
C. A captive agent
D. A managing general agent
C. A contract - Which of the following terms describes a legal agreement between two competent
parties that promises a certain performance in exchange for a certain consideration?
A. An offer
B. An acceptance
C. A contract
D. A consideration
D. Unilateral - Which one of the following is not 1 of the 4 elements of a legal contract?
A. Offer
, B. Acceptance
C. Legal Purpose
D. Unilateral
Representation - Jill is filling out an insurance application with information that she believes to be true.
The information that she is providing is considered a...
Warranty - A guarantee that something is true is a...
D. a person who commits fraud is subject to imprisonmnet for up to 25 years - All of the following
statements regarding fraud and false statements are correct EXCEPT:
A. a person who commits fraud is subject to a fine
B. a person who commits fraud is subject imprisonment for up to 10 years
C. a person who commits fraud is subject to both a fine and imprisonmnet for up to 10 years
D. a person who commits fraud is subject to imprisonmnet for up to 25 years
Insurance - What is a contract or device for transferring risk from a person, business, or organization to
an insurance company?
D. The chance your house may burn down - Which of the following represents a pure risk?
A. A poker game
B. Gambling in the stock market
C. Investing in a new business
D. The chance your house may burn down
Morale - Suzanne regularly leaves her side door unlocked when she leaves for work. One afternoon, a
thief entered her apartment and stole all of her jewelry. What was the hazard in this example?
