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Free Life Accident and Health Insurance Basics Practice Questions

Colorado Life, Accident & Health exam — 64 practice questions.

Subtopics: Insurable interest in another, Risk pooling, Pure vs speculative risk, Mortality table, Field underwriting, Conditional receipt, Backdating, Riders, Insurable interest timing, Insurable interest, 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, Binding receipt, Insuring clause, Consideration clause, Free-look provision, Policy ownership, Third-party ownership, 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

Read the Life Accident and Health Insurance Basics study guide

Sample questions & answers

1. A person generally has an insurable interest in another's life when:

They would suffer financial loss or have a close relationship, such as a spouse or business partner

Insurable interest in another arises from close family ties or financial dependence, such as a spouse, dependent, creditor, or business partner.

2. The basic mechanism that allows insurance to work is:

Pooling the premiums of many to pay the losses of a few

Insurance pools premiums from many insureds so that the relatively few who suffer covered losses can be paid.

3. Which type of risk is insurable?

Pure risk, involving only the chance of loss or no loss

Only pure risk, which involves the chance of loss or no loss with no possibility of gain, is generally insurable.

4. A mortality table is used by life insurers primarily to:

Estimate the probability of death by age to help price policies

Mortality tables show expected death rates by age and gender, helping insurers price life coverage and set reserves.

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Practice: Life Accident and Health Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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.