Instructions:

• Answer 50 questions in 15 minutes.
• If you are not ready to take this test, you can study here.
• Match each statement with the correct term.
• Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Approved Amount
Insurance that provides protection for a specific period of time.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.


2. Agent's Authority
Insurance agent or broker.
Special powers granted to an agent by his or her agency contract.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.


3. Buyer's Guide
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
The process of reviewing - accepting or rejecting applications for insurance.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A table showing the incidence of sickness at specified ages.


4. Nonmedical

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


5. Basic Illustration
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An insurance policy that provides payment if the insured's death is the result of an accident.
A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare.


6. Utmost Good Faith
The fair and equal bargaining by both parties in forming the contract - where the applicant must make full disclosure of risk to the company - and the insurance company must be fair in underwriting the risk.
The person who is named to receive benefits upon the death of the insured if the (primary) first-named beneficiary is no longer alive or does not collect all the benefits due to his/her own death.
Written and /or oral statements regarding a consumer's credit - character - reputation - or habits collected by a reporting agency from employment records - credit reports - and other public sources.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.


7. Unilateral Contract
A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
A contract that legally binds only one party to contractual obligations after the premium is paid.
An agent/broker who handles insurer's funds in a trust capacity.
A type of health insurance that usually carries a large deductible and pays covered expenses up to a high limit whether the insured is in or out of the hospital.


8. Alzheimer's Disease
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
The fair and equal bargaining by both parties in forming the contract - where the applicant must make full disclosure of risk to the company - and the insurance company must be fair in underwriting the risk.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.


9. Standard Provisions
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
Care that is rendered to help an insured complete his/her activities of daily living.
Requirements approved by state law that must appear in all insurance policies.
A group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.


10. CSO Table (The Commissioner's Standard Ordinary Table)
A fee or commission charged at the time of purchase of an annuity or a security.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.


11. Living Benefits Rider
An insurance company authorized and licensed to transact business in a particular state.
Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability - but is still not able to perform at the same level as before becoming disabled.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.


12. Lump Sum
The first page of a policy.
A provision that allows an insurer - at its own expense - to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.
Life insurance provided for members of a group.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.


13. Hazard - Physical
A type of hazard that arises from the physical characteristics of an individual - such as a physical disability due to either current circumstance or a condition present at birth.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A contract that legally binds only one party to contractual obligations after the premium is paid.


14. Medical Savings Account
An employer-funded account linked to a high deductible medical insurance plan.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
Time between the beginning of a disability and the start of disability insurance benefits.


15. Adult Day Care
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
A model of HMO and PPO organizations that uses the insured's primary care physician (the gatekeeper) as the initial contact for the patient for medical care and for referrals.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.


16. Consideration Clause
The method of determining primary coverage for a dependent child - under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary.
The person who receives the proceeds from the policy when the insured dies.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
A part of the insurance contract that states that both parties must give something of value for the transfer of risk - and specifies the conditions of the exchange.


17. Decreasing Term
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
A policy premium that remains the same over the period of time premiums are paid.


18. Exposure
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A unit of measure used to determine rates charged for insurance coverage.
A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
An injury or disease which occurs suddenly and requires treatment within 24 hours.


19. Reciprocal Exchange
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Time between the beginning of a disability and the start of disability insurance benefits.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.


20. Juvenile Life
Any life insurance written on the life of a minor.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
The person who receives the proceeds from the policy when the insured dies.
A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid.


21. Rate Service Organization
An organization that is formed by - or on behalf of - a group of insurers to develop rates for those insurers - and to file the rates with the insurance department on behalf of its members. They may also act as a collection point for actuarial data.
A contract that provides income for a specified period of years - or for life.
The cause of a possible loss.
Type of care in which part-time nursing or home health aide services - speech therapy - physical or occupational therapy services are given in the home of the insured.


22. Actual Cash Value (ACV)

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


23. Multiple-Employer Trust (MET)
Lessening the possibility or severity of a loss.
The withholding of known facts which - if material - can void a contract.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.


24. Personal Contract

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


25. Authorized (Admitted) Insurer
An insurance company authorized and licensed to transact business in a particular state.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
The head of the state department of insurance.
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.


26. Death Benefit
The amount payable upon the death of the person whose life is insured.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.


27. Policy Loan
Plans designed to help individuals save for qualified health expenses.
Daily nursing care or skilled care - such as administration of medication - diagnosis - or minor surgery that is performed by or under the supervision of a skilled professional.
A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy assigned as security for the loan to the policyowner.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).


28. Limited-Pay Whole Life

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


29. Nonqualified Pla
Life insurance provided for members of a group.
A type of benefit plan that may discriminate - is not required to be filed with the IRS - and does not provide a current tax deduction for contributions.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
A patient who is expected to die within an amount of time specified in the policy.


30. Ancillary
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
Life insurance provided for members of a group.
A policy that may be exchanged for another type of policy by contractual provision - at the option of the policyowner - and without evidence of insurability (i.e. term life changed to a form of permanent life).


31. Over Insurance
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
An insurance company authorized and licensed to transact business in a particular state.
A medical benefits program jointly administered by the individual states and the federal government.


32. Spendthrift Clause
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
A document that authorizes a company to start conducting business and specifies the kind(s) of insurance a company can transact. It is illegal for an insurance company to transact insurance without this certificate.
Health insurance policies that cover only specific accidents or diseases.


33. Health Reimburse
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.


34. Adjuster
The date when the face amount of the life insurance becomes payable.
An insurance company that conducts business in the state of incorporation.
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.


35. Viatical Settlement
An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed - before death.
Insurance agent or broker.
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.


36. Home Health Agency

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


37. Insurable Interest
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
An insurance sales office or company.
A financial interest in the life of another person; a possibility of losing something of value if the insured should die. In life and health insurance - insurable interest must be stated at the time of policy issue.


38. Assignment (Health)
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A claim to a provider or medical supplier to receive payments directly from Medicare.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.


39. Loss of Income Insurance
A period of time - usually required by law - during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for a
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
A period of time - usually required by law - during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for a


40. Risk - Speculative
Life insurance provided for members of a group.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
An illustration furnished in addition to a basic illustration that may be presented in a different format than the basic illustration - but may only depict a scale of nonguaranteed elements that is permitted in a basic illustration.
An organization that is formed by - or on behalf of - a group of insurers to develop rates for those insurers - and to file the rates with the insurance department on behalf of its members. They may also act as a collection point for actuarial data.


41. Contract
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
Health coverage provided to members of a group.
An agreement between two or more parties enforceable by law.


42. Excess Insurance
Insurance that pays over and above or in addition to basic policy limits.
Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death - whenever that may be.
Insurance that pays dividends to policyholders.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.


43. Group Health Insurance
An insurance company authorized and licensed to transact business in a particular state.
Health coverage provided to members of a group.
The date when the face amount of the life insurance becomes payable.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.


44. Broker
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
The amount payable upon the death of the person whose life is insured.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
An insurance company that is incorporated outside the United States.


45. Pro Rata Cancellation
A physical illness - disease - or pregnancy - but not a mental illness.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.


46. Long-Term Disability Insurance
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident.
The voluntary abandonment of a known or legal right or advantage.


47. Out-of-Pocket Costs
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A policy premium that remains the same over the period of time premiums are paid.


48. Settlement Options
An insurance company that conducts business in the state of incorporation.
Choices available to the insured/owner for distribution of insurance proceeds.
A person trained in the technical aspects of insurance and related fields - particularly in the mathematics of insurance; a person who - on behalf of the company - determines the mathematical probability of loss.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.


49. Benefit Period
The full face value of a policy.
Benefits required by state law to be paid to an employee by an employer in the case of injury - disability - or death as the result of an on-the-job hazard.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.


50. Paid-Up Insurance
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor.
A request for payment of the benefits provided by an insurance contract.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.