1
Life & Health Insurance Exam Prep Questions and Answers Latest Version Already Graded A
What type of insurance provides a death benefit to beneficiaries upon the insured's death?✔✔ Life insurance
What insurance policy covers medical expenses due to illness or injury?✔✔ Health insurance
What is the term for the amount the insured must pay out of pocket before the insurance company starts to pay?✔✔ Deductible
What type of life insurance policy builds cash value over time?✔✔ Whole life insurance
Which insurance document outlines the terms, conditions, and benefits of a policy?✔✔ Policy contract 1 / 4
2
What is the process called when an insurer assesses risk before issuing a policy?✔✔ Underwriting
What term describes the person who receives the death benefit from a life insurance policy?✔✔ Beneficiary
What type of policy provides coverage for a specified period and pays a benefit only if death occurs during that time?✔✔ Term life insurance
What is the period after the premium due date during which coverage remains in force despite nonpayment?✔✔ Grace period
Which clause prevents the insured from collecting benefits for a loss caused intentionally by themselves?✔✔ Suicide clause 2 / 4
3
What type of health insurance plan requires members to use a network of providers and get referrals for specialists?✔✔ Health Maintenance Organization (HMO)
What does the acronym COBRA stand for in health insurance?✔✔ Consolidated Omnibus Budget Reconciliation Act
What is the maximum amount an insurance company will pay for a covered loss called?✔✔ Policy limit
What term refers to the insurance company's promise to pay benefits as stated in the policy?✔✔ Insuring clause
What is the concept of spreading risk among many policyholders to reduce financial loss called?✔✔ Risk pooling
- / 4
4
What is the legal principle that the insured must act honestly and disclose all material facts called?✔✔ Utmost good faith
What type of health insurance policy pays a fixed daily amount during hospitalization regardless of actual expenses?✔✔ Indemnity policy
Which rider allows an insured to increase life insurance coverage without additional evidence of insurability?✔✔ Guaranteed insurability rider
What term describes the ongoing payment the insured makes to keep an insurance policy active?✔✔ Premium
What kind of policy pays dividends to policyholders but does not guarantee them?✔✔ Participating policy
- / 4