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  4. Life Accident and Health Insurance Basics

Free Life Accident and Health Insurance Basics Practice Questions

North Carolina Life, Accident & Health exam — 64 practice questions.

Subtopics: Field underwriting, Conditional receipt, Warranty of insurability, Stock vs mutual, Premium mode, Producer ethics, Insurable interest health, Agent authority, Beneficiary types, 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, 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. When taking a life or health application, the producer practices field underwriting by:

Accurately recording information that helps the insurer assess the risk

Field underwriting is the producer's role in gathering accurate applicant information and completing the application so the insurer can properly evaluate the risk.

2. A conditional receipt given when an application and initial premium are submitted provides:

Coverage subject to the applicant meeting the insurer's underwriting conditions

A conditional receipt may provide coverage as of the application or medical exam date if the applicant ultimately proves insurable under the insurer's standards.

3. The main purpose of underwriting in life and health insurance is to:

Classify risks fairly and set appropriate premiums

Underwriting evaluates and classifies risks so that premiums are appropriate to the risk, protecting the insurer's solvency and treating insureds equitably.

4. A mutual insurance company is owned by:

Its policyholders

A mutual insurer is owned by its policyholders, who may receive dividends, whereas a stock insurer is owned by shareholders.

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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.