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. Nonqualified Pla
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an 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 combination of a flexible premium and adjustable life insurance.


2. Medicare Supplement Insurance
The transfer of ownership rights of a life insurance policy from one person to another.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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 life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.


3. Level Premium
The effect a person's indifference concerning loss has on the risk to be insured.
A policy premium that remains the same over the period of time premiums are paid.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
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.


4. Expiration
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
The date specified in the policy as the date of termination.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
To reach the maturity date or time at which the face amount equals cash values.


5. Accidental Death and Dismemberment (AD&D)

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6. Parol
Legal term that distinguishes oral statements from written statements.
Life insurance provided for members of a group.
An insurance policy that provides payment if the insured's death is the result of an accident.
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.


7. Cease and Desist Order
Insurance organizations that have no capital stock - but are owned by the policyholders.
A demand of a person to stop committing an action that is in violation of a provision.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.


8. Peril
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
The cause of a possible loss.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.


9. Contract
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
A contract that provides income for a specified period of years - or for life.
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 two or more parties enforceable by law.


10. Administrator
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A fee or commission charged at the time of purchase of an annuity or a security.


11. Restorative Care
A table showing the probability of death at specified ages.
The person who has possession of the policy - usually the insured.
A termination of a policy by an insurer on the anniversary or renewal date.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.


12. Insolvent organization
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.
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 single policy that is designed to insure two or more lives.
A policy premium that remains the same over the period of time premiums are paid.


13. Excess Insurance
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Health insurance policies that cover only specific accidents or diseases.
Insurance that pays over and above or in addition to basic policy limits.
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.


14. Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986

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15. Explanation of Medicare Benefits
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 level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").


16. Basic Hospital Expense Insurance
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
Selling assets as a method of raising capital.
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 program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.


17. Partial Disability

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18. Waiting Period
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
Time between the beginning of a disability and the start of disability insurance benefits.


19. Personal Contract

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20. Liquidation
Selling assets as a method of raising capital.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
The first page of a policy.
A type of insurance that pays benefits for medical - surgical - and hospital costs.


21. Intermediate Care
The voluntary abandonment of a known or legal right or advantage.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.


22. Terminally Ill
A patient who is expected to die within an amount of time specified in the policy.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Disability from which the insured does not recover.
A material stipulation in the policy that if breached may void coverage.


23. Annuity
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A contract that provides income for a specified period of years - or for life.


24. Nonrenewal
The date when the face amount of the life insurance becomes payable.
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
A termination of a policy by an insurer on the anniversary or renewal date.
Protection against loss due to sickness or bodily injury.


25. Endodontics
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.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).
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. Medicaid
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
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 covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A medical benefits program jointly administered by the individual states and the federal government.


27. Legal Reserve

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28. Conditional Contract
A selection of health care benefits from which an employee may choose the ones that he/she needs.
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 type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.


29. Underwriter
The portion of premium for which policy protection has not yet been given.
The person who has possession of the policy - usually the insured.
The voluntary abandonment of a known or legal right or advantage.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.


30. Dread (Specified) Disease Policy
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
To reach the maturity date or time at which the face amount equals cash values.
A periodic payment to the insurance company to keep the policy in force.
Time between the beginning of a disability and the start of disability insurance benefits.


31. Agent
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 arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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.


32. Preferred Risk
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
Any group or individual who provides health care services.


33. Custodial Car
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
Care that is rendered to help an insured complete his/her activities of daily living.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.


34. Twisting

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35. Medical Information Bureau (MIB)
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.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
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
Written and /or oral statements regarding a consumer's credit - character - reputation - or habits collected by a reporting agency from employment records - credit reports - and other public sources.


36. Avoidance
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 policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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).
The effect a person's indifference concerning loss has on the risk to be insured.


37. Attending Physician's Statement (APS)

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38. Multiple Employer Welfare Association (MEWA)
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 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.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.


39. Loss
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.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
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 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.


40. Group Health Insurance
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The voluntary abandonment of a known or legal right or advantage.
Health coverage provided to members of a group.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.


41. Fixed Annuity
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
A single policy that is designed to insure two or more lives.
The age of the insured at a determined date.


42. Medical Savings Account
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
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 contract that provides income for a specified period of years - or for life.
An employer-funded account linked to a high deductible medical insurance plan.


43. Underwriting
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
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.
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


44. Investigative Consumer Report

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45. Credit Life Insurance
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
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).
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.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.


46. Accidental Bodily Injury
Unplanned - unforeseen traumatic injury to the body.
A situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).
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.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.


47. Consideration Clause
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
A termination of a policy by an insurer on the anniversary or renewal date.
Selling assets as a method of raising capital.
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.


48. Natural Premium
Care that is rendered to help an insured complete his/her activities of daily living.
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 physical illness - disease - or pregnancy - but not a mental illness.
Health insurance policies that cover only specific accidents or diseases.


49. Employee RetirementIncome Security Act (ERISA)
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
Health insurance policies that cover only specific accidents or diseases.
A demand of a person to stop committing an action that is in violation of a provision.
The act that stipulates federal standards for private pension plans.


50. Settlement Options
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.
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 provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
Choices available to the insured/owner for distribution of insurance proceeds.