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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. Mortality Table
A combination of a flexible premium and adjustable life insurance.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
A table showing the probability of death at specified ages.
Legal term that distinguishes oral statements from written statements.

2. Insurer
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.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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.
Selling assets as a method of raising capital.

3. Countersignature
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
The act of signing an insurance policy by a licensed resident agent.
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 fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

4. Risk
A claim form that a claimant must submit after a loss occurs.
Uncertainty as to the outcome of an event when two or more possibilities exist.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.

5. Pure Protection
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.
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).
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.

6. Underwriter
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
A person who relies on another for support and maintenance.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

7. Commission
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
An organization that is formed by - or on behalf of - a group of insurers to develop rates for those insurers - and to file the rates with the insurance department on behalf of its members. They may also act as a collection point for actuarial data.
The payment made by insurers to agents or brokers for the sale and service of policies.

8. Partial Disability

9. Executory Contract
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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 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.
Health coverage provided to members of a group.

10. Home Health Services
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
The amount a physician or supplier actually bills for a particular service or supply.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

11. Cease and Desist Order
A demand of a person to stop committing an action that is in violation of a provision.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.

12. Whole Life Insurance

13. Activities of Daily Living (ADLs)
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.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A provision that specifies to whom claims payments are to be made.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

14. Nonrenewal
A termination of a policy by an insurer on the anniversary or renewal date.
A combination of a flexible premium and adjustable life insurance.
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.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

15. Certificate
The acceptability of an applicant who meets an insurance company's underwriting requirements for 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 statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

16. Prosthodontics
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A claim to a provider or medical supplier to receive payments directly from Medicare.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.

17. Attained Age
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
The age of the insured at a determined date.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
An insurance company authorized and licensed to transact business in a particular state.

18. Group Health Insurance
An insurance company authorized and licensed to transact business in a particular state.
An insurance policy that provides payment if the insured's death is the result of an accident.
Health coverage provided to members of a group.
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.

19. Superintendent (Commissioner - Director)
The head of the state department of insurance.
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 statement usually obtained from the applicant's doctor.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

20. Consideration
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A termination of a policy by an insurer on the anniversary or renewal date.
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
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.

21. Controlled Business
An organization that is formed by - or on behalf of - a group of insurers to develop rates for those insurers - and to file the rates with the insurance department on behalf of its members. They may also act as a collection point for actuarial data.
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 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.
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.

22. Surrender
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 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 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 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.

23. Insolvent organization
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 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 retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A fee or commission charged at the time of purchase of an annuity or a security.

24. Capital Amount
A termination of a policy by an insurer on the anniversary or renewal date.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.

25. Omnibus Budget Reconciliation Act
Insurance furnished by nongovernmental insuring organizations.
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 policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

26. Lump Sum
A table showing the probability of death at specified ages.
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.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A fee or commission charged at the time of purchase of an annuity or a security.

27. Fair Credit Reporting Act
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 salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
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.
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.

28. Extended Care Facility
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A facility which is licensed by the state to provide 24 hour nursing care.

29. Short-Rate Cancellation
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
The amount payable upon the death of the person whose life is insured.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
Canceling the policy with a less than proportionate return of premium.

30. Waiting Period
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Time between the beginning of a disability and the start of disability insurance benefits.
Insurance organizations that have no capital stock - but are owned by the policyholders.

31. Express Authority

32. Buy-Sell Agreement
The amount of time an employee has to sign up for a contributory group health plan.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
Special powers granted to an agent by his or her agency contract.

33. Acquired Immunodeficiency Syndrome (AIDS)
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
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.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

34. Hazard - Moral

35. Viatical Settlement
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 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.
Requirements approved by state law that must appear in all insurance policies.
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.

36. Non-participating Policies (Non-par)
Lessening the possibility or severity of a loss.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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.
Insurance that does not pay dividends.

37. Domestic Insurer
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).
An insurance company that conducts business in the state of incorporation.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Insurance furnished by nongovernmental insuring organizations.

38. Avoidance
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).
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
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 area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

39. Extension of Benefits

40. Joint Life
A single policy that is designed to insure two or more lives.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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.

41. Universal Life
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 combination of a flexible premium and adjustable life insurance.
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.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

42. Certificate of Authority
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 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.
Protection against loss due to sickness or bodily injury.
Uncertainty as to the outcome of an event when two or more possibilities exist.

43. Lloyd's Associations
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
The act of signing an insurance policy by a licensed resident agent.
A provision that specifies to whom claims payments are to be made.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

44. Accidental Death Benefits
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 furnished by nongovernmental insuring organizations.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

45. Annual Statement
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An insurance company that conducts business in the state of incorporation.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

46. Policyholder
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
The person who has possession of the policy - usually the insured.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

47. Waiver
The head of the state department of insurance.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
The voluntary abandonment of a known or legal right or advantage.

48. Juvenile Life
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Any life insurance written on the life of a minor.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
Unplanned - unforeseen traumatic injury to the body.

49. Secondary Beneficiary
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.
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.
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.

50. Nonauthorized (Nonadmitted)
A temporary contract that puts an insurance policy into force before the premium has been paid.
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.
Any inducement offered in the sale of insurance products that is not specified in the 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.