Life and Health Insurance Exam 1

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Life and Health Insurance Exam 1 Questions and Answers Latest Version Already Passed

What is the primary purpose of life insurance?✔✔ A. To provide financial protection to beneficiaries

• To increase income
• To pay off personal debt
• To invest in the stock market

Which type of life insurance covers you for a specific period?✔✔ A. Term Life

• Whole Life
• Universal Life
• Variable Life

Which policy builds cash value over time?

• Term Life

✔✔ B. Whole Life 1 / 4

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• Credit Life
• Group Term

A beneficiary is:

• The agent who sells the policy

✔✔ B. The person who receives the death benefit

• The person who underwrites the policy
• The company issuing the policy

Which type of health insurance covers hospital and surgical expenses?✔✔ A. Major Medical

• Accidental Death
• Term Life
• Credit Disability

A policy that cannot be canceled by the insurer during a specified period is:

✔✔ A. Noncancelable

• Convertible 2 / 4

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• Renewable
• Participating

The person who pays the insurance premium is known as:

✔✔ A. The policyowner

• The underwriter
• The insured
• The agent

What is a grace period in life insurance?

• Time to contest a claim

✔✔ B. Time allowed to pay a late premium

• Time for underwriting approval
• Time for benefit payout

What does insurable interest mean?✔✔ A. You would suffer a loss if the insured dies

• You want to profit from someone’s death 3 / 4

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• You are curious about their finances
• You’re related by blood

What is underwriting in insurance?✔✔ A. The process of evaluating risk

• Paying out a claim
• Selling policies
• Settling disputes

Which rider allows purchase of additional insurance without proof of insurability?✔✔ A. Guaranteed Insurability

• Waiver of Premium
• Accelerated Death Benefit
• Accidental Death

What is the main benefit of group life insurance?

• Individual customization

✔✔ B. Lower premiums

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