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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. Pre-Existing Condition
The person who has possession of the policy - usually the insured.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A group insurance plan that requires the employees to pay part of the premium.

2. Accidental Bodily Injury
The person who has possession of the policy - usually the insured.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
Unplanned - unforeseen traumatic injury to the body.
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.

3. Unearned Premium
The portion of premium for which policy protection has not yet been given.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
The authority granted to an agent by means of the agent's written contract.
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.

4. Natural Premium
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.
The person who has possession of the policy - usually the insured.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

5. Lapse
Plans designed to help individuals save for qualified health expenses.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
Termination of a policy because the premium has not been paid by the end of the grace period.
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.

6. Mortality Table
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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 table showing the probability of death at specified ages.
A physical illness - disease - or pregnancy - but not a mental illness.

7. Lloyd's Associations
The person who is named as first to receive benefits from a policy.
Selling assets as a method of raising capital.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

8. Application
Insurance that pays over and above or in addition to basic policy limits.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
A unit of measure used to determine rates charged for insurance coverage.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

9. Gatekeeper Model

10. Orthodontics
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 portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A statement usually obtained from the applicant's doctor.

11. Front-End Load
A fee or commission charged at the time of purchase of an annuity or a security.
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.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
A person who relies on another for support and maintenance.

12. Broker
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
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
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

13. Exclusions
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
The payment made by insurers to agents or brokers for the sale and service of policies.

14. Warranty
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A material stipulation in the policy that if breached may void coverage.
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.

15. Attending Physician's Statement (APS)

16. Insurer
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 person who relies on another for support and maintenance.
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.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

17. Free Look
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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 information database that stores the health histories of this database for underwriting purposes.individuals who have applied for insurance in the past. Most insurance companies subscribe to
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

18. Insuring Clause
Insurance that does not pay dividends.
Legal term that distinguishes oral statements from written statements.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

19. Aleatory
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
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 amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
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.

20. Consumer Reports

21. Foreign Insurer
An insurance company that is incorporated in another state.
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.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
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.

22. Insured
A unit of measure used to determine rates charged for insurance coverage.
Selling assets as a method of raising capital.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
The person or organization that is protected by insurance; the party to be indemnified.

23. Accident Insurance
The person who receives the proceeds from the policy when the insured dies.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
A type of insurance that protects the insured against loss due to accidental bodily injury.

24. Morbidity Table
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
A table showing the incidence of sickness at specified ages.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Insurance organizations that have no capital stock - but are owned by the policyholders.

25. Universal Life
A combination of a flexible premium and adjustable life 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.
An insurance company that is incorporated in another state.
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.

26. Grace Period
Time between the beginning of a disability and the start of disability insurance benefits.
Insurance that does not pay dividends.
An act that is intended to cause injury. Self- inflicted injuries are not covered under accident insurance; intentional injuries inflicted on the insured by another are covered.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

27. Nonforfeiture Values
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.
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 covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

28. Waiver
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The voluntary abandonment of a known or legal right or advantage.
An insurance company that is incorporated in another state.

29. Risk - Substandard
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
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.
Lessening the possibility or severity of a loss.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

30. Fraud
A unit of measure used to determine rates charged for insurance coverage.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

31. Term Insurance
The withholding of known facts which - if material - can void a contract.
A request for payment of the benefits provided by an insurance contract.
Insurance that provides protection for a specific period of time.
The full face value of a policy.

32. Executory Contract
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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.

33. Apparent Authority
Requirements approved by state law that must appear in all insurance policies.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
Insurance agent or broker.

34. Health Insurance
A mortality table used in life insurance that mathematically predicts the likelihood of death.
Protection against loss due to sickness or bodily injury.
A circumstance that increases the likelihood of a loss.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

35. Implied Authority
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.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

36. Risk - Pure
A claim form that a claimant must submit after a loss occurs.
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.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
An agreement between two or more parties enforceable by law.

37. Custodial Car
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
Lessening the possibility or severity of a loss.
Care that is rendered to help an insured complete his/her activities of daily living.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.

38. Short-Rate Cancellation
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
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.
Canceling the policy with a less than proportionate return of premium.

39. Periodontics
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
The authority granted to an agent by means of the agent's written contract.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

40. Basic Illustration
A contract that legally binds only one party to contractual obligations after the premium is paid.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

41. Home Health Care
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
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.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
A false statement or lie that can render the contract void.

42. Valued Contract
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A legal impediment to denying a fact or restoring a right that has been previously waived.
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.

43. Hazard - Morale

44. Superintendent (Commissioner - Director)
A statement usually obtained from the applicant's doctor.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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.

45. Integrated LTC Rider

46. Coverage
The difference between the Medicare approved amount for a service or supply and the actual charge.
A claim to a provider or medical supplier to receive payments directly from Medicare.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

47. Private Insurance
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
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 furnished by nongovernmental insuring organizations.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

48. Oral Surgery
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Insurance agent or broker.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

49. Risk - Speculative
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
An insurance company that is incorporated outside the United States.

50. Waiting Period
Disability from which the insured does not recover.
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.
The amount payable upon the death of the person whose life is insured.
Time between the beginning of a disability and the start of disability insurance benefits.