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Free Life Accident and Health Insurance Basics Practice Questions

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

Subtopics: Risk transfer, Hazard, Peril, Insurable interest in life, Underwriting, Sources of underwriting info, Consumer report disclosure, Adverse selection, Rebating prohibition rationale, 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, 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

Read the Life Accident and Health Insurance Basics study guide

Sample questions & answers

1. Insurance is best described as a method of doing what with risk?

Transferring the financial consequences of risk to an insurer

Insurance transfers the financial consequences of a covered loss from the insured to the insurer in exchange for premium.

2. A condition that increases the likelihood or severity of a loss is called what?

A hazard

A hazard is a condition that increases the chance or severity of a loss, distinct from the peril that actually causes it.

3. The actual cause of a loss, such as a heart attack or an automobile collision, is called what?

A peril

A peril is the direct cause of a loss, whereas a hazard merely increases the probability that a peril will occur.

4. For life insurance, insurable interest must exist between the policyowner and the insured at what time?

At the inception of the policy

Insurable interest in life insurance must exist when the policy is issued, not necessarily at the time of the insured's death.

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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.