FREE Life And Health Insurance Practice Questions and Answers

Question 1

Which type of insurance guarantees that the policy can be renewed every year, regardless of the policyholder's health, but at a higher cost?

Accepted Answer

Renewable term

Answer

Level term

Answer

Convertible term

Answer

Decreasing term

Question 2

What's the significance of worker's compensation legislation?

Accepted Answer

Employers would be held responsible for the cost of their employee's work injuries regardless of fault

Answer

Employees would have to sue their employers to obtain reimbursement for work injuries

Answer

Employees no longer had any legal means of obtaining reimbursement for work injuries

Answer

Employers were no longer responsible for work injuries to employees

Question 3

In the event of a terminal illness, which death benefit clause will trigger payment of a portion of the death benefit before the insured's death?

Accepted Answer

Accelerated death benefit

Answer

Waiver of premium

Answer

Disability Income

Answer

Cost of living

Question 4

A ____ is a way to give family members a break from taking care of a person who needs constant care.

Accepted Answer

Respite care

Answer

Hospital care

Answer

Hospice care

Answer

Intermediate care

Question 5

If an insurance is unable to pay debts when they are due, the insurer is believed to be _______.

Accepted Answer

Insolvent

Answer

Unauthorized

Answer

Non-admitted

Answer

Impaired

Question 6

Which types of payments to beneficiaries must be taxed by the IRS?

Accepted Answer

Gains from interest

Answer

Base policy benefit plus gains from interest

Answer

Base policy benefit

Answer

None of the above

Question 7

An insurance policy that covers hospital confinement indemnity pays ____.

Accepted Answer

The daily benefit coverage amount stated in the policy for each day the insured is confined in the hospital

Answer

An indemnity to the insured for all expenses incurred when the insured is confined to a hospital

Answer

The amount of the actual hospital expenses

Answer

100% of the covered medical expenses less the deductible and co-insurance percentage

Question 8

The definition of disability under social security is the inability to engage _____.

Accepted Answer

Any substantial gainful activity

Answer

An activity with a given level of compensation

Answer

An approved occupation

Answer

The person's chosen career

Question 9

Which is a speculative risk?

Accepted Answer

Gambling

Answer

Skydiving

Answer

Unsafe driving

Answer

Frequent traveling

Question 10

What makes a risk insurable?

Accepted Answer

All of the above

Answer

Is measurable

Answer

Is pure

Answer

Has a defined dollar value