1. What is the difference between life insurance and accidental death and

dismemberment insurance?

a) Life insurance pays a benefit only if the insured dies of natural causes,

while accidental death and dismemberment insurance pays a benefit only if

the insured dies or loses a limb or an organ due to an accident.

b) Life insurance pays a benefit regardless of the cause of death, while

accidental death and dismemberment insurance pays a benefit only if the

insured dies or loses a limb or an organ due to an accident.

c) Life insurance pays a benefit regardless of the cause of death, while

accidental death and dismemberment insurance pays a benefit only if the

insured loses a limb or an organ due to an accident.

d) Life insurance pays a benefit only if the insured dies within a specified

period, while accidental death and dismemberment insurance pays a benefit

regardless of the time of death or injury.

Answer: B

Rationale: Life insurance is a contract that guarantees a payment to the

beneficiary upon the death of the insured, regardless of the cause of death.

Accidental death and dismemberment insurance is a type of life insurance

that pays an additional benefit if the insured dies or suffers a loss of limb or

organ due to an accident.

2. What is the purpose of underwriting in life and health insurance?

a) To determine the eligibility and premium rate of the applicant based on

their risk profile.

b) To verify the identity and medical history of the applicant based on their

documents and records.

c) To provide financial advice and guidance to the applicant based on their

needs and goals.

d) To monitor and manage the claims and benefits of the policyholder based

on their contract terms.

Answer: A

Rationale: Underwriting is the process of evaluating the risk factors of an

applicant for life and health insurance, such as age, gender, health status,

occupation, lifestyle, family history, etc. Based on this assessment, the

insurer decides whether to accept or reject the application, and what

premium rate to charge.