Question 1
Under the Insurance Code of the Philippines, when must insurable interest exist in a life insurance policy?
Correct Answer:
Only at the time the policy is issued
Question 2
Which of the following describes the 'Law of Large Numbers' as applied to life insurance?
Correct Answer:
The larger the number of similar exposure units observed, the more predictable the future losses will be
Question 3
What type of risk is characterized by having only the possibilities of loss or no loss, with no chance of financial gain?
Correct Answer:
Pure risk
Question 4
Why is life insurance referred to as a 'contract of adhesion'?
Correct Answer:
The policyholder must accept the contract in its entirety as written by the insurer, without negotiation
Question 5
In a life insurance contract, only the insurer makes a legally enforceable promise to pay the death benefit if the conditions are met. This makes the contract:
Correct Answer:
Unilateral
Question 1
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About this Exam

Prepare with the Traditional Life Practice Questions - Insurance Commission Licensure Exam - Traditional Life (Philippines) Exam practice quiz. This question bank includes 100 questions covering insurance, life, policy, death, and beneficiary. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Traditional Life Practice Questions - Insurance Commission Licensure Exam - Traditional Life (Philippines) Exam

This practice set contains 100 questions from the matching question bank and focuses on insurance, life, policy, death, and beneficiary. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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