Free Life Accident and Health Insurance Basics Practice Questions
Tennessee Life, Accident & Health exam — 105 practice questions.
Subtopics: Pure risk, Insurable risk, Risk avoidance, Risk transfer, Insurable interest, Agency, Privacy, Suitability, Disclosure, Cost indexes, Personal uses, Determining amount, Business uses, Viatical settlements, Classes of policies, Premium factors, Premium frequency, Producer responsibilities, Policy delivery, Company underwriting, Classification of risks, Legal concepts, Definitions of perils, Types of losses and benefits, Limited health policies, Replacing health insurance, Premium determination, Conditional receipt, Binding receipt, Insuring clause, Consideration clause, Free-look provision, Policy ownership, Third-party ownership, Mortality table, Level premium concept, Net amount at risk, Policy reserves, Living benefits of cash value, Attending physician statement, Inspection report, Declined risk, Flat extra premium, Replacement, Buyer's Guide, Controlling adverse selection, Premature death, Final expense insurance, Estate liquidity, Charitable uses, Survivorship policy, Juvenile insurance, Life settlement, Creditor insurable interest, Human life value, Application signatures, Third-party consent, Application changes, Incomplete application, Premium receipt, Risk classification, Substandard rating, Underwriting sources, Accelerated underwriting, Genetic information, STOLI, Needs analysis, Social Security, A&H types of losses, AD&D, Limited policies, Workers compensation, Subrogation, Health underwriting, Dependent coverage, Newborn coverage
Read the Life Accident and Health Insurance Basics study guide
Sample questions & answers
1. The only kind of risk that is generally insurable is:
Pure risk
Only pure risk, which involves the chance of loss or no loss (but no chance of gain), is generally insurable.
2. Which of the following is a characteristic of a risk that insurers consider insurable?
The loss is measurable
An insurable risk should produce a definite, measurable loss that is not catastrophic to the insurer and is one of a large number of similar exposures.
3. Choosing not to engage in an activity in order to eliminate its risk entirely is risk:
Avoidance
Risk avoidance eliminates a risk by not engaging in the activity that creates it.
4. Purchasing insurance is primarily an example of risk:
Transfer
Buying insurance transfers the financial consequences of risk to the insurer.
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Practice: Life Accident and Health Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
