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Free Life Accident and Health Insurance Basics Practice Questions

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

Subtopics: Pure risk, Insurable risk, Risk avoidance, Risk transfer, Insurable interest, Agency, Privacy, Suitability, Disclosure, 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. 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 is a characteristic of an ideally insurable risk?

The loss must be measurable and not catastrophic to the insurer

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

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 Pennsylvania Insurance Department and the exam administrator before relying on it.