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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. Defamation

2. Adult Day Care
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
Insurance that pays over and above or in addition to basic policy limits.
A person who relies on another for support and maintenance.

3. Disability Income Insurance

4. Exclusions
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 selection of health care benefits from which an employee may choose the ones that he/she needs.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
The individual's age when a policy is issued.

5. Nonauthorized (Nonadmitted)
A person making application for - or offering him/herself or another to be insured under an insurance contract.
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 clause that defines the insurance company's and the insured's right to cancel or renew coverage.
An insurance company that has not applied for - or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state.

6. Underwriting
A unit of measure used to determine rates charged for insurance coverage.
The process of reviewing - accepting or rejecting applications for insurance.
A variation of whole life insurance that charges a level annual premium and provides a level - guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.

7. Hospital Confinement Rider
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.

8. Reserve
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
The person who has possession of the policy - usually the insured.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.

9. Elimination Period
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

10. Enrollment Period
The cause of a possible loss.
The amount of time an employee has to sign up for a contributory group health plan.
The amount of the premium for which the policy protection has been given.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.

11. Adverse Selection
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.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

12. Service Plans
Insurance that does not pay dividends.
The amount a physician or supplier actually bills for a particular service or supply.
The act that stipulates federal standards for private pension plans.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

13. Avoidance
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.
A fee or commission charged at the time of purchase of an annuity or a security.
A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash - he/she might choose never to fly in a plane).
Health insurance policies that cover only specific accidents or diseases.

14. Annuity
A contract that provides income for a specified period of years - or for life.
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 rule that states a contract may not be altered without written consent of both parties; in other words - the contract may not be altered by an oral agreement.
A rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'

15. Exposure
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A fee or commission charged at the time of purchase of an annuity or a security.
An insurance sales office or company.
A unit of measure used to determine rates charged for insurance coverage.

16. Short-Term Disability Insurance
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
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 group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.
Protection against loss due to sickness or bodily injury.

17. Dependent
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.
Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage - or a waiver of a coverage or condition.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
A person who relies on another for support and maintenance.

18. Estoppel
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A legal impediment to denying a fact or restoring a right that has been previously waived.
An agent licensed in a state in which he or she is not a resident.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

19. Right to Return (aka Free Look)
A mortality table used in life insurance that mathematically predicts the likelihood of death.
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 claim to a provider or medical supplier to receive payments directly from Medicare.
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

20. Fair Credit Reporting Act
An insurance company that has not applied for - or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential - accurate - relevant and properly used.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

21. Renewability Clause

22. Front-End Load
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
A fee or commission charged at the time of purchase of an annuity or a security.
A claim to a provider or medical supplier to receive payments directly from Medicare.
An insurance policy that provides payment if the insured's death is the result of an accident.

23. Risk - Substandard
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
Care that is rendered to help an insured complete his/her activities of daily living.
Insurance organizations that have no capital stock - but are owned by the policyholders.

24. Settlement Options
A combination of a flexible premium and adjustable life insurance.
Choices available to the insured/owner for distribution of insurance proceeds.
The withholding of known facts which - if material - can void a contract.
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.

25. Nonrenewal
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
A member organization which is unable to pay its contractual obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.
A termination of a policy by an insurer on the anniversary or renewal date.

26. Consideration Clause
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.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
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.

27. Cafeteria Plan
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

28. Juvenile Life
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
Any life insurance written on the life of a minor.

29. Commissioner (Superintendent - Director)
The chief executive and administrative officer of a state insurance department.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Disability from which the insured does not recover.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.

30. Joint Life
Uncertainty as to the outcome of an event when two or more possibilities exist.
A rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'
A single policy that is designed to insure two or more lives.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

31. Reduction
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.
Choices available to the insured/owner for distribution of insurance proceeds.
Lessening the possibility or severity of a loss.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.

32. Sickness
A physical illness - disease - or pregnancy - but not a mental illness.
A contract that provides income for a specified period of years - or for life.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

33. Surrender
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
An agreement between two or more parties enforceable by law.

34. Medical Savings Account
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.
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.
A group insurance plan that requires the employees to pay part of the premium.
An employer-funded account linked to a high deductible medical insurance plan.

35. Underwriter
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
The date when an insurance policy begins (also known as the inception date). The period of time in which an employee may enroll in a group health care plan without having to provide evidence of insurability.
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.

36. Preferred Provider Organization (PPO)

37. Mutual Companies
The amount of the premium for which the policy protection has been given.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
Insurance organizations that have no capital stock - but are owned by the policyholders.
The date when the face amount of the life insurance becomes payable.

38. Proceeds

39. Excess Insurance
A periodic payment to the insurance company to keep the policy in force.
A method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss who share the losses that occur within that group.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Insurance that pays over and above or in addition to basic policy limits.

40. Application
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

41. Extension of Benefits

42. Grace Period
Any group or individual who provides health care services.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A group insurance plan that requires the employees to pay part of the premium.

43. Home Health Services
Insurance that pays over and above or in addition to basic policy limits.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
Any group or individual who provides health care services.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

44. Contributory
A group insurance plan that requires the employees to pay part of the premium.
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.
Insurance that pays over and above or in addition to basic policy limits.
The head of the state department of insurance.

45. Fraternal Benefit Societies
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.
A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.
A false statement or lie that can render the contract void.
The voluntary abandonment of a known or legal right or advantage.

46. Disclosure
Insurance that pays dividends to policyholders.
The effect a person's indifference concerning loss has on the risk to be insured.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
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.

47. Accidental Bodily Injury
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.
Unplanned - unforeseen traumatic injury to the body.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
Life insurance provided for members of a group.

48. Agency
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
An insurance sales office or company.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.

49. Accident
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The maximum amount a physician may charge a Medicare beneficiary for a covered service if the physician does not accept assignment of the Medicare approved amount.
Organizations that process claims and pay benefits in an insurance policy

50. Payment of Claims
Time between the beginning of a disability and the start of disability insurance benefits.
A provision that specifies to whom claims payments are to be made.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
Insurer's location of incorporation and the legal ability to write business in a state.