Test your basic knowledge |

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. Loss of Income Insurance
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

2. Blanket Medical 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.
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.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

3. Reinsurance
Disability from which the insured does not recover.
An insurance company that is incorporated outside the United States.
A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it - agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

4. Adjuster
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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.
The effect a person's indifference concerning loss has on the risk to be insured.

5. Integrated LTC Rider

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

6. Indemnify
A person making application for - or offering him/herself or another to be insured under an insurance contract.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.

7. Credit Life Insurance
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
The head of the state department of insurance.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

8. Orthodontics
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
Time between the beginning of a disability and the start of disability insurance benefits.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.

9. Alien Insurer
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
An insurance company that is incorporated outside the United States.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
The withholding of known facts which - if material - can void a contract.

10. Boycott
A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured) against a loss by a specified future contingency or peril in return for payment of a premium.
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.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

11. Permanent Life Insurance
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.
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.
The transfer of ownership rights of a life insurance policy from one person to another.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

12. Tertiary Beneficiary
Insurance that provides protection for a specific period of time.
The third in line to receive the benefits of a life insurance policy.
The head of the state department of insurance.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

13. Parol Evidence Rule
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 policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
A claim form that a claimant must submit after a loss occurs.

14. Insurable Interest
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.
An insurance company authorized and licensed to transact business in a particular state.
Any inducement offered in the sale of insurance products that is not specified in the policy.
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.

15. Total Disability
A request for payment of the benefits provided by an insurance contract.
The process of reviewing - accepting or rejecting applications for insurance.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.

16. Sharing
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.
Choices available to the insured/owner for distribution of insurance proceeds.
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 legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

17. Sickness
The date when the face amount of the life insurance becomes payable.
A request for payment of the benefits provided by an insurance contract.
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.
A physical illness - disease - or pregnancy - but not a mental illness.

18. Countersignature
The act of signing an insurance policy by a licensed resident agent.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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.

19. Preferred Risk
A physical illness - disease - or pregnancy - but not a mental illness.
Requirements approved by state law that must appear in all insurance policies.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
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.

20. Investigative Consumer Report

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

21. Free Look
Insurance organizations that have no capital stock - but are owned by the policyholders.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
Insurance furnished by nongovernmental insuring organizations.
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

22. Flexible Premium
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
Lessening the possibility or severity of a loss.
A fee or commission charged at the time of purchase of an annuity or a security.
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.

23. Applicant
The person who is named as first to receive benefits from a policy.
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.
An insurance company that is incorporated outside the United States.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

24. Earned Premium
The amount of the premium for which the policy protection has been given.
A statement usually obtained from the applicant's doctor.
An employer-funded account linked to a high deductible medical insurance plan.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

25. Producer
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
Insurance agent or broker.
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.

26. Group Health Insurance
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 person who relies on another for support and maintenance.
Health coverage provided to members of a group.
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.

27. Multiple Employer Welfare Association (MEWA)
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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.
An insurance policy that provides payment if the insured's death is the result of an accident.

28. Annuity
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A contract that provides income for a specified period of years - or for life.
A type of insurance that pays benefits for medical - surgical - and hospital costs.

29. Law of Large Numbers
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A principle stating that the larger the number of similar exposure units considered - the more closely the losses reported will equal the underlying probability of loss.
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.

30. Rescission
The amount of the premium for which the policy protection has been given.
Insurance that provides protection for a specific period of time.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
The termination of an insurance contract due either to material misrepresentation by the insured or by fraud - misrepresentation - or duress on the part of the agent/insurer.

31. Principal Amount
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.
Insurer's location of incorporation and the legal ability to write business in a state.
The full face value of a policy.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

32. Medical Savings Account
Care that is rendered to help an insured complete his/her activities of daily living.
The first page of a policy.
An insurance company that conducts business in the state of incorporation.
An employer-funded account linked to a high deductible medical insurance plan.

33. Issue Age

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

34. Recurrent Disability
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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.
A table showing the probability of death at specified ages.
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.

35. Expiration
Insurer's location of incorporation and the legal ability to write business in a state.
The date specified in the policy as the date of termination.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.

36. Effective Date
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.
A circumstance that increases the likelihood of a loss.
The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.
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.

37. Executory Contract
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
Canceling the policy with a less than proportionate return of premium.
The act that stipulates federal standards for private pension plans.

38. Broker
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

39. Level Premium
A policy premium that remains the same over the period of time premiums are paid.
The voluntary abandonment of a known or legal right or advantage.
A contract that legally binds only one party to contractual obligations after the premium is paid.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.

40. Extended Care Facility
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
A facility which is licensed by the state to provide 24 hour nursing care.
The first page of a policy.

41. Excess Charge
Special powers granted to an agent by his or her agency contract.
Insurance that provides protection for a specific period of time.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
The difference between the Medicare approved amount for a service or supply and the actual charge.

42. Transfer
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
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.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

43. Consideration
The voluntary abandonment of a known or legal right or advantage.
The binding force in a contract that requires something of value to be exchanged for the transfer of risk. The consideration on the part of the insured is the representations made in the application and the payment of premium; the consideration on th
The cause of a possible loss.
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.

44. Waiver of Premium
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
An insurance company that is incorporated outside the United States.
The authority granted to an agent by means of the agent's written contract.
Uncertainty as to the outcome of an event when two or more possibilities exist.

45. Buyer's Guide
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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 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 booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

46. Over Insurance
An entity certified by the insured's health plan that provides health care services under contract.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
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 legal impediment to denying a fact or restoring a right that has been previously waived.

47. Omnibus Budget Reconciliation Act
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.
The amount of premium that must be collected from each member of a group composed of the same age - sex and risk in order to pay $1 -000 for each death that will occur in the group each year.
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.
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.

48. Insured
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 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 person or organization that is protected by insurance; the party to be indemnified.
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

49. Permanent Disability
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
Disability from which the insured does not recover.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A material stipulation in the policy that if breached may void coverage.

50. Substandard Risk
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.