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Life And Health Insurance Exam

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. Disclosure
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

2. Policyowner
The first page of a policy.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
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.

3. Certificate of Authority
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.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
The full face value of a policy.
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.

4. Insurable Interest
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The act of signing an insurance policy by a licensed resident agent.
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.
Plans designed to help individuals save for qualified health expenses.

5. Option
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.

6. Policyholder
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
The chief executive and administrative officer of a state insurance department.
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.
The person who has possession of the policy - usually the insured.

7. Approved Amount
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.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

8. Integrated LTC Rider

9. Multiple Employer Welfare Association (MEWA)
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Any entity of at least two employers - other than a duly admitted insurer - that establishes an employee benefit plan for the purpose of offering or providing accident and sickness or death benefits to the employees.

10. Emergency
An injury or disease which occurs suddenly and requires treatment within 24 hours.
Time between the beginning of a disability and the start of disability insurance benefits.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

11. Extended Care Facility
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
A facility which is licensed by the state to provide 24 hour nursing care.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

12. Custodial Car
Care that is rendered to help an insured complete his/her activities of daily living.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
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.
Insurance that does not pay dividends.

13. Policy Loan
The person or organization that is protected by insurance; the party to be indemnified.
A federal law which extends the minimum COBRA continuation of group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.
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.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

14. Reserve
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Time between the beginning of a disability and the start of disability insurance benefits.

15. Misrepresentation
A false statement or lie that can render the contract void.
A fee or commission charged at the time of purchase of an annuity or a security.
The individual's age when a policy is issued.
Health insurance policies that cover only specific accidents or diseases.

16. Excess Insurance
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
Insurance that pays over and above or in addition to basic policy limits.
Selling assets as a method of raising capital.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.

17. Waiver of Premium
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.

18. Coverage
An agent licensed in a state in which he or she is not a resident.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
A combination of a flexible premium and adjustable life insurance.

19. Actual Cash Value (ACV)

20. Short-Term Disability Insurance
Insurance that pays over and above or in addition to basic policy limits.
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
A federal law which extends the minimum COBRA continuation of group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.
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.

21. Endodontics
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
The date when the face amount of the life insurance becomes payable.
A unit of measure used to determine rates charged for insurance coverage.

22. Medicare Supplement Insurance
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
Health and social services provided under the supervision of physicians and medical health professionals for persons with chronic diseases or disabilities. Care is usually provided in a Long-Term Care Facility which is a state licensed facility that
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.

23. Health Reimburse
The person who is named as first to receive benefits from a policy.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The head of the state department of insurance.

24. Medical Expense Insurance
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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 type of insurance that pays benefits for medical - surgical - and hospital costs.

25. Tertiary Beneficiary
An insurance policy that provides payment if the insured's death is the result of an accident.
A federal requirement that employers who have 25 or more employees - who are within the service area of a qualified HMO - who pay minimum wage - and offer a health plan - must offer HMO coverage as well as an indemnity plan.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
The third in line to receive the benefits of a life insurance policy.

26. Subrogation
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
The age of the insured at a determined date.
The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third party who may have caused the loss.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

27. Underwriter
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
Choices available to the insured/owner for distribution of insurance proceeds.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

28. Coinsurance Clause
Insurance that pays over and above or in addition to basic policy limits.
Health coverage provided to members of a group.
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.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.

29. Skilled Nursing Care
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
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.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.

30. Service Plans
A liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
The amount of the premium for which the policy protection has been given.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.

31. Retention

32. Accident Insurance
A physical illness - disease - or pregnancy - but not a mental illness.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.

33. Surrender
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
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.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.

34. Comprehensive Major Medical
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

35. Level Premium
A temporary contract that puts an insurance policy into force before the premium has been paid.
A policy premium that remains the same over the period of time premiums are paid.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

36. Parol
Legal term that distinguishes oral statements from written statements.
A single policy that is designed to insure two or more lives.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

37. Beneficiary
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.
The person who receives the proceeds from the policy when the insured dies.
A person who relies on another for support and maintenance.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

38. Applicant
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

39. Noncancelable
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.
An agreement between two or more parties enforceable by law.
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.

40. Annuity
A contract that provides income for a specified period of years - or for life.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.

41. Permanent Life Insurance
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.

42. Admitted (Authorized) Insurer
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.
A false statement or lie that can render the contract void.

43. Proceeds

44. Binder (Binding Receipt)
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.

45. Multiple-Employer Trust (MET)
The age of the insured at a determined date.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

46. Recurrent Disability
Any group or individual who provides health care services.
Any entity of at least two employers - other than a duly admitted insurer - that establishes an employee benefit plan for the purpose of offering or providing accident and sickness or death benefits to the employees.
A policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

47. Superintendent (Commissioner - Director)
The voluntary abandonment of a known or legal right or advantage.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
The head of the state department of insurance.
Authority that is not expressed or written into the contract - but which the agent is assumed to have in order to transact the business of insurance for the principal.

48. Out-of-Pocket Costs
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A fee or commission charged at the time of purchase of an annuity or a security.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

49. Foreign Insurer
A contract offered on a "take-it-or-leave-it" basis by an insurer - in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An insurance company that is incorporated in another state.

50. Medicare
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
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.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
A table showing the incidence of sickness at specified ages.