Alabama Life and Health Insurance Exam Questions and Answers by Expert

Alabama Life and Health Insurance Exam Questions and Answers ( by Expert)
Question : Which of the following would be considered a
speculative risk?
CORRECT ANSWER: The possibility the painting you
bought might be a long-lost masterpiece
A speculative risk is one in which there is a chance for either
loss or gain. Example: Gambling, Casino's, Lottery, etc. All
of the other choices describe pure risk, where there is no
chance of gain, only a chance of loss exists.
Question : Which is the proper term for a company owned by
its policy owners?
CORRECT ANSWER: A mutual insurance company
Question : A producer who is acting as an agent is
representing:
CORRECT ANSWER: Always the insurer

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