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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. Alzheimer's Disease
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
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.
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.

2. Application
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
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.

3. Applicant
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

4. Pro Rata Cancellation
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.

5. Stock Companies
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.

6. Approved Amount
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 method of premium payment - whether annually - semiannually - quarterly - or monthly.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.

7. Natural Premium
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.
Choices available to the insured/owner for distribution of insurance proceeds.
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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

8. Rollover
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
Termination of a policy because the premium has not been paid by the end of the grace period.
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.

9. Non-participating Policies (Non-par)
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A single policy that is designed to insure two or more lives.
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.
Insurance that does not pay dividends.

10. Valued Contract
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The process of reviewing - accepting or rejecting applications for insurance.

11. Insurer
The third in line to receive the benefits of a life insurance policy.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
The process of reviewing - accepting or rejecting applications for insurance.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

12. Agency
Any group or individual who provides health care services.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
An insurance sales office or company.

13. Claim
The portion of premium for which policy protection has not yet been given.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

14. Insurability

15. Director (Commissioner - Superintendent)
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
Requirements approved by state law that must appear in all insurance policies.
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 head of the state department of insurance.

16. Free Look
A statement usually obtained from the applicant's doctor.
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 agreement between two or more parties enforceable by law.
Canceling the policy with a less than proportionate return of premium.

17. Integrated LTC Rider

18. Maturity Date
The date when the face amount of the life insurance becomes payable.
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 amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A statement usually obtained from the applicant's doctor.

19. Group Disability Insurance
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.

20. Assignment (Health)
A claim to a provider or medical supplier to receive payments directly from Medicare.
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.
Legal term that distinguishes oral statements from written statements.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

21. Nonadmitted (Nonauthorized)
Plans designed to help individuals save for qualified health expenses.
A facility which is licensed by the state to provide 24 hour nursing care.
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.
Time between the beginning of a disability and the start of disability insurance benefits.

22. Alien Insurer
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.
Unplanned - unforeseen traumatic injury to the body.
An insurance company that is incorporated outside the United States.
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.

23. Annual Statement
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
An agent/broker who handles insurer's funds in a trust capacity.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

24. Capital Amount
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
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 person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
The head of the state department of insurance.

25. Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Termination of a policy because the premium has not been paid by the end of the grace period.
Disability from which the insured does not recover.

26. Effective Date
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 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.
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.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

27. Lump Sum
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
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 selection of health care benefits from which an employee may choose the ones that he/she needs.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

28. Multiple Employer Welfare Association (MEWA)
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The effect a person's indifference concerning loss has on the risk to be insured.
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 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.

29. Premium
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.
Care that is rendered to help an insured complete his/her activities of daily living.
A periodic payment to the insurance company to keep the policy in force.
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.

30. 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 group insurance plan that requires the employees to pay part of the premium.
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 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.

31. Buy-Sell Agreement
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.
Selling assets as a method of raising capital.
A patient who is expected to die within an amount of time specified in the policy.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

32. Contributory
The date when the face amount of the life insurance becomes payable.
The date specified in the policy as the date of termination.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A group insurance plan that requires the employees to pay part of the premium.

33. Reciprocity

34. Adverse Selection
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The amount a physician or supplier actually bills for a particular service or supply.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

35. Health Savings Accounts (HSAs)
Plans designed to help individuals save for qualified health expenses.
A fee or commission charged at the time of purchase of an annuity or a security.
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
The authority granted to an agent by means of the agent's written contract.

36. Basic Illustration
A fee or commission charged at the time of purchase of an annuity or a security.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Any group or individual who provides health care services.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

37. Nonrenewal
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Insurance furnished by nongovernmental insuring organizations.
A termination of a policy by an insurer on the anniversary or renewal date.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

38. Hazard
Any life insurance written on the life of a minor.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A circumstance that increases the likelihood of a loss.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

39. Medical Information Bureau (MIB)
The act that stipulates federal standards for private pension plans.
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.
Health insurance policies that cover only specific accidents or diseases.
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

40. Nonqualified Pla
Choices available to the insured/owner for distribution of insurance proceeds.
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.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.

41. Provider
A circumstance that increases the likelihood of a loss.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Any group or individual who provides health care services.
A claim to a provider or medical supplier to receive payments directly from Medicare.

42. Noncancelable
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.
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 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 contract that legally binds only one party to contractual obligations after the premium is paid.

43. Orthodontics
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

44. Option
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
Insurer's location of incorporation and the legal ability to write business in a state.

45. Living Benefits Rider
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.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
The person who has possession of the policy - usually the insured.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

46. Residual Disability
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.
Unplanned - unforeseen traumatic injury to the body.
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.
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.

47. Excess Insurance
Insurance that pays over and above or in addition to basic policy limits.
The person or organization that is protected by insurance; the party to be indemnified.
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 that has not applied for - or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state.

48. Recurrent Disability
A unit of measure used to determine rates charged for insurance coverage.
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.
A combination of a flexible premium and adjustable life insurance.
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.

49. Buyer's Guide
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
A type of insurance that protects the insured against loss due to accidental bodily injury.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

50. Coinsurance Clause
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
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 provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.