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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. Fiduciary

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2. Medigap
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
Any inducement offered in the sale of insurance products that is not specified in the policy.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
The person or organization that is protected by insurance; the party to be indemnified.

3. Accidental Death Benefits
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.

4. Insured
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 person or organization that is protected by insurance; the party to be indemnified.
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.
The portion of premium for which policy protection has not yet been given.

5. Excess Charge
The difference between the Medicare approved amount for a service or supply and the actual charge.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
The age of the insured at a determined date.
An agent licensed in a state in which he or she is not a resident.

6. Maturity Date
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
The date when the face amount of the life insurance becomes payable.

7. Non-participating Policies (Non-par)
Insurance that does not pay dividends.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

8. Nonadmitted (Nonauthorized)
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
Requirements approved by state law that must appear in all insurance policies.
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 termination of a policy by an insurer on the anniversary or renewal date.

9. Annuity
The amount of time an employee has to sign up for a contributory group health plan.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A contract that provides income for a specified period of years - or for life.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

10. Whole Life Insurance

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11. 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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A physical illness - disease - or pregnancy - but not a mental illness.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

12. Natural Premium
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
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.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.

13. Probationary Period
Lessening the possibility or severity of a loss.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
Insurance that pays over and above or in addition to basic policy limits.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.

14. Fraternal Benefit Societies
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
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. Unilateral Contract
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
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 contract that legally binds only one party to contractual obligations after the premium is paid.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

16. Mutual Companies
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
Insurance organizations that have no capital stock - but are owned by the policyholders.
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.
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

17. 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.
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.
Health insurance policies that cover only specific accidents or diseases.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

18. Certificate of Authority
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.
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.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

19. Provider
Any group or individual who provides health care services.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
The head of the state department of insurance.

20. Policyholder
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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.
The person who has possession of the policy - usually the insured.

21. Domestic Insurer
An insurance company that conducts business in the state of incorporation.
Disability from which the insured does not recover.
The head of the state department of insurance.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

22. Oral Surgery
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage - or a waiver of a coverage or condition.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

23. Basic Hospital Expense Insurance
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
An insurance company that conducts business in the state of incorporation.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.

24. Morbidity Table
A table showing the incidence of sickness at specified ages.
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
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

25. CSO Table (The Commissioner's Standard Ordinary Table)
A material stipulation in the policy that if breached may void coverage.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
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 mortality table used in life insurance that mathematically predicts the likelihood of death.

26. Nonauthorized (Nonadmitted)
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 agreement between two or more parties enforceable by law.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

27. Agent's Authority
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.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
A legal impediment to denying a fact or restoring a right that has been previously waived.
Special powers granted to an agent by his or her agency contract.

28. Long-Term Disability Insurance
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 insurance company authorized and licensed to transact business in a particular state.
The person or organization that is protected by insurance; the party to be indemnified.
Insurance that provides protection for a specific period of time.

29. Beneficiary
The act that stipulates federal standards for private pension plans.
To reach the maturity date or time at which the face amount equals cash values.
The person who receives the proceeds from the policy when the insured dies.
The effect a person's indifference concerning loss has on the risk to be insured.

30. Payor Benefit
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.
An entity certified by the insured's health plan that provides health care services under contract.
The full face value of a policy.
An insurance company authorized and licensed to transact business in a particular state.

31. Service Plans
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
A person who relies on another for support and maintenance.
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.
An insurance sales office or company.

32. Adhesion

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33. Basic Illustration
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Insurance furnished by nongovernmental insuring organizations.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
A form of misrepresentation in which an agent persuades an insured/owner to cancel - lapse - or switch policies - even when it's to the insured's disadvantage.

34. Adverse Selection
Legal term that distinguishes oral statements from written statements.
Special powers granted to an agent by his or her agency contract.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

35. Accidental Bodily Injury
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Unplanned - unforeseen traumatic injury to the body.

36. Rollover
The date when the face amount of the life insurance becomes payable.
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 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.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

37. Convertible
A policy that may be exchanged for another type of policy by contractual provision - at the option of the policyowner - and without evidence of insurability (i.e. term life changed to a form of permanent life).
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
A request for payment of the benefits provided by an insurance 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.

38. Waiver
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 voluntary abandonment of a known or legal right or advantage.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Insurance that does not pay dividends.

39. Mortality Table
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
A table showing the probability of death at specified ages.
A combination of a flexible premium and adjustable life insurance.
Organizations that process claims and pay benefits in an insurance policy

40. Agency
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
An insurance sales office or company.

41. Coverage
Insurance that pays dividends to policyholders.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
The first page of a policy.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

42. Preferred Risk
A policy that may be exchanged for another type of policy by contractual provision - at the option of the policyowner - and without evidence of insurability (i.e. term life changed to a form of permanent life).
A physical illness - disease - or pregnancy - but not a mental illness.
Uncertainty as to the outcome of an event when two or more possibilities exist.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

43. Free Look
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
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 cause of a possible loss.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

44. Residual Disability
Health coverage provided to members of a group.
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.
A type of health insurance that usually carries a large deductible and pays covered expenses up to a high limit whether the insured is in or out of the hospital.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

45. Assignment (Life)
A table showing the probability of death at specified ages.
The transfer of ownership rights of a life insurance policy from one person to another.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
Any life insurance written on the life of a minor.

46. Warranty
A fee or commission charged at the time of purchase of an annuity or a security.
A material stipulation in the policy that if breached may void coverage.
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.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

47. Subrogation
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 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.
Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage - or a waiver of a coverage or condition.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

48. Reciprocity

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49. Conditional Contract
Health coverage provided to members of a group.
Termination of a policy because the premium has not been paid by the end of the grace period.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

50. Intermediaries
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An agent/broker who handles insurer's funds in a trust capacity.
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.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.