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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. Endorsement
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
The withholding of known facts which - if material - can void a contract.
A material stipulation in the policy that if breached may void coverage.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

2. Concealment
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 statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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 withholding of known facts which - if material - can void a contract.

3. Misrepresentation
An insurance company that is incorporated outside the United States.
A false statement or lie that can render the contract void.
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 inclusion of causes of loss (perils) which are covered within a scope of a policy.

4. Limiting Charge
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
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

5. Supplemental Illustration
Plans designed to help individuals save for qualified health expenses.
A contract that provides income for a specified period of years - or for life.
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 contract that legally binds only one party to contractual obligations after the premium is paid.

6. Attained Age
The age of the insured at a determined date.
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.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Time between the beginning of a disability and the start of disability insurance benefits.

7. Single Premium Whole Life (SPWL)

8. Home Health Agency

9. Primary Policy
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.

10. Rider
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
The act of signing an insurance policy by a licensed resident agent.
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.
A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.

11. Apparent Authority
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
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.

12. Attending Physician's Statement (APS)

13. Life Expectancy
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
The amount a physician or supplier actually bills for a particular service or supply.
A person who relies on another for support and maintenance.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

14. Adjustable Life
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Time between the beginning of a disability and the start of disability insurance benefits.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

15. Hospice
A legal impediment to denying a fact or restoring a right that has been previously waived.
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 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.
A false statement or lie that can render the contract void.

16. Accident
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.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
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.
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.

17. Short-Rate Cancellation
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.
Canceling the policy with a less than proportionate return of premium.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.

18. Tertiary Beneficiary
The third in line to receive the benefits of a life insurance policy.
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 agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
The person who receives the proceeds from the policy when the insured dies.

19. Health Reimburse
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
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 amount of time an employee has to sign up for a contributory group health plan.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

20. Countersignature
The act of signing an insurance policy by a licensed resident agent.
An insurance company that is incorporated in another state.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

21. Loss
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
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 cause of a possible loss.
Life insurance provided for members of a group.

22. Nonadmitted (Nonauthorized)
The amount of time an employee has to sign up for a contributory group health plan.
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.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Insurance that does not pay dividends.

23. Custodial Car
Care that is rendered to help an insured complete his/her activities of daily living.
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to
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.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

24. Viatical Settlement
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.
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 difference between the Medicare approved amount for a service or supply and the actual charge.
The fair and equal bargaining by both parties in forming the contract - where the applicant must make full disclosure of risk to the company - and the insurance company must be fair in underwriting the risk.

25. Liquidation
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 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 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).

26. Broker
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.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

27. Producer
The amount of the premium for which the policy protection has been given.
A group insurance plan that requires the employees to pay part of the premium.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
Insurance agent or broker.

28. Insured
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 level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
The person or organization that is protected by insurance; the party to be indemnified.

29. Rate Service Organization
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.
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 medical benefits program jointly administered by the individual states and the federal government.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.

30. Annuity
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
A contract that provides income for a specified period of years - or for life.

31. Alzheimer's Disease
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 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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Termination of a policy because the premium has not been paid by the end of the grace period.

32. Agent's Authority
A periodic payment to the insurance company to keep the policy in force.
A physical illness - disease - or pregnancy - but not a mental illness.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Special powers granted to an agent by his or her agency contract.

33. Authorized (Admitted) Insurer
An insurance company authorized and licensed to transact business in a particular state.
Daily nursing care or skilled care - such as administration of medication - diagnosis - or minor surgery that is performed by or under the supervision of a skilled professional.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
An insurance policy that provides payment if the insured's death is the result of an accident.

34. Reinsurance
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.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
Lessening the possibility or severity of a loss.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

35. Policyowner
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
The person who is named as first to receive benefits from a policy.

36. Superintendent (Commissioner - Director)
Canceling the policy with a less than proportionate return of premium.
The head of the state department of insurance.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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.

37. Joint Life
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 single policy that is designed to insure two or more lives.
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.
Health insurance policies that cover only specific accidents or diseases.

38. Nonauthorized (Nonadmitted)
A claim to a provider or medical supplier to receive payments directly from Medicare.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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 percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

39. Adhesion

40. Exclusions
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A policy premium that remains the same over the period of time premiums are paid.
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 practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.

41. Primary Beneficiary
The authority granted to an agent by means of the agent's written contract.
The individual's age when a policy is issued.
Organizations that process claims and pay benefits in an insurance policy
The person who is named as first to receive benefits from a policy.

42. Warranty
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
Insurance that provides protection for a specific period of time.
A material stipulation in the policy that if breached may void coverage.
The payment made by insurers to agents or brokers for the sale and service of policies.

43. Consideration
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
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
Daily nursing care or skilled care - such as administration of medication - diagnosis - or minor surgery that is performed by or under the supervision of a skilled professional.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

44. 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.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

45. Face
The first page of a policy.
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.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

46. Provider
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to
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.
Any group or individual who provides health care services.

47. Level Premium
A policy premium that remains the same over the period of time premiums are paid.
Insurance agent or broker.
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.
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.

48. Decreasing Term
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 uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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.

49. Waiting Period
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
Time between the beginning of a disability and the start of disability insurance benefits.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

50. Adult Day Care
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
The person or organization that is protected by insurance; the party to be indemnified.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.