Exam 1: Health: Health and Life Insurance

The cause of potential loss is referred to as a peril. Conditions that increase the seriousness or likelihood are referred to as hazards. Which of the following are the four types of recognized hazards that can contribute to losses?

Bob purchases 500 accumulation units at $1.00 per unit. If the value of the accumulation units increases to $2.50 each, how many accumulation units will Bob own?

What type of insurance is designed to provide life insurance protection for a limited period of time?

Jessica designates her $300,000 life insurance policy beneficiaries as her 3 sons - Ben, Jeff, and Chris. Ben has two children of his own, Jeff has three children and Chris has one child. Jeff and Chris are in a car wreck that kills Jeff instantly. Because Jessica has a per capita designation on her life insurance policy, when she dies the policy will be divided how?

Sarah purchases a life annuity with period certain contract for 10 years. At age 70, Sarah retires and begins receiving her annuity payments. After her 76th birthday, Sarah dies. What will happen to Sarah's annuity payments?

What helps to lower the premium rates?

When Bill dies Janell receives the death benefits. If Janell dies before Bill, Cody and Steve will receive equal benefits upon Bill's death. Which of the following is true?

If a level term is issued as renewable and convertible, what happens to the policy at the end of the term?

Phil wants to examine his policy carefully prior to committing to purchase. What will he need to do in order to examine this policy prior to purchase?

When a policy has an incontestable clause, this usually remains in effect for how long?

Annuities fall into one of two categories based on when the payments are set to begin. When the income payments of the contract begin at some point into the future, this is called?

When an individual receives a life insurance contract, they will receive all of the following except

Which of the following protects the insured against financial consequences of legal liability?

The concept of indemnity means

If an insured individual is indemnified for the loss of a leg, this means

Insurance companies are governed by regulations intended to assure investments are

Disability insurance has an elimination period or waiting period similar to deductibles. This period is

If Jack and Jill both have $500,000 to fund the payment of a lifetime annuity payment, which of the following best explains differences that may occur in the determination of payouts?

How much must the contributory life insurance plan cover?

Andy is the insured, his wife Melissa is the primary beneficiary, and Andy's children from a previous marriage are his contingent beneficiaries. Melissa also has a policy naming Andy as the primary and their daughter as the contingent. If Andy and Melissa are killed in a plane wreck, but evidence shows that Melissa died after Andy, who receives the payments from the insurance policies?