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  2. South Dakota
  3. Life, Accident & Health
  4. Life and Health Insurance Basics

Free Life and Health Insurance Basics Practice Questions

South Dakota Life, Accident & Health exam — 63 practice questions.

Subtopics: Key person, Buy-sell funding, Substandard risk, Premium mode, Net amount at risk, Contingent beneficiary, Per capita, Human life value, 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, 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

Sample questions & answers

1. A corporation that would suffer financial harm if a vital executive died has an insurable interest sufficient to purchase:

Key person life insurance on that executive

A business has an insurable interest in a key employee and may buy key person life insurance to offset the loss of that person.

2. Life insurance purchased to fund a buy-sell agreement among business owners chiefly provides cash to:

Purchase a deceased owner's interest in the business

Buy-sell life insurance supplies the funds needed for surviving owners or the business to buy a deceased owner's interest.

3. An applicant with a significant but insurable health impairment will most likely be issued coverage as a:

Substandard (rated) risk

An insurable applicant with elevated risk is typically issued a substandard or rated policy with a higher premium.

4. Compared with paying a life insurance premium annually, paying it monthly usually results in:

A higher total yearly cost because of added charges

Paying premiums more frequently than annually generally raises the total annual cost because of additional administrative charges.

All Life, Accident & Health topics

Practice: Life 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.