NEBRASKA STATE LIFE AND HEALTH INSURANCE EXAM

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NEBRASKA STATE LIFE AND HEALTH INSURANCE EXAM

TERMS Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Risk Classifications

Answer:

Preferred, Standard, Substandard

Question 2: Indemnity

Answer:

restoring the insured to the condition that existed before loss

Question 3: Decreasing Term Insurance

Answer:

Face amount decreases each year

Question 4: Nonforfeiture Options

Answer:

Guarantees built into a policy. 1 Cash Surrender Value

• Extended Term 3 Reduced Paid Up

Question 5: Permanent Insurance

Answer:

Builds Cas Value and Remains in effect for the entire life of the insured

Question 6: Straight Whole Life

Answer:

Premiums are paid until the insured's death or age 100

Question 7: Moral

Answer:

tendency toward increased risk (driving fast)

Question 8: Aleatory Contract

Answer:

Exchange of unequal values

Question 9: Unilateral Contract

Answer:

Only one party is legally bound by the contract

Question 10: Ownership

Answer:

Policy owner's rights and privileges within the period

Question 11: Applicant/Proposed insured

Answer:

a person applying for insurance

Question 12: Hazard

Answer:

Conditions that increase the probability of a loss

Question 13: Insurance

Answer:

Transfer of risk of loss from an individual to na insurer

Question 14: Concealment

Answer:

Intentional withholding of material information

Question 15: Adjustable Life Insurance

Answer:

Term or Permanent, Policy owner can increase or decrease the premium the face amount of period of protection

Question 16: Key Features of Term Insurance

Answer:

Pure Death Protection, Level Premiums, Renewable, Convertible

Question 17: Reinstatement

Answer:

Lapsed policies can be restored within a specified period

Question 18: Cash Value

Answer:

Policy Savings element or living benefit

Question 19: Agent/Producer

Answer:

legal representative of an insurance company

Question 20: Morale

Answer:

indifference towards risk (not locking the door)

Question 21: Entire Contract

Answer:

Policy with riders and amendments plus copy of application

Question 22: Legal Action

Answer:

Period of time for legal action after a loss

Question 23: Personal Contract

Answer:

Between an insurer and an individual

Question 24: 3 Basic Types of Whole Life

Answer:

Straight Life, Limited Payment, Single Premium

Question 25: Dividend Options

Answer:

Only in participating Policies, not , not taxable 1 Cash Payment 2 Reduction of Premium 3 Accumulation at Interest

• One Year Term 5 Paid up additions 6 Paid up Insurance

Question 26: Adverse Selection

Answer:

Insuring of risks more prone to loss than the average

Question 27: 3 Types of Term Insurance

Answer:

Level, Increasing, Decreasing

Question 28: Solicitation of Insurance

Answer:

Attempt to persuade a person to buy a policy