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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. Agent's Authority
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
Special powers granted to an agent by his or her agency contract.
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.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

2. Permanent Life Insurance
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.

3. Rollover
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 facility which is licensed by the state to provide 24 hour nursing care.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

4. Accelerated Benefits
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
Benefits required by state law to be paid to an employee by an employer in the case of injury - disability - or death as the result of an on-the-job hazard.
The individual's age when a policy is issued.
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.

5. Countersignature
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.
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.
The act of signing an insurance policy by a licensed resident agent.

6. Claim
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 request for payment of the benefits provided by an insurance contract.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.

7. Pre-Existing Condition
A physical or mental impairment - either congenital or resulting from an injury or sickness.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

8. Insolvent organization
Life insurance provided for members of a group.
Special powers granted to an agent by his or her agency contract.
A member organization which is unable to pay its contractual obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.
The 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

9. Approved Amount
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A provision that specifies to whom claims payments are to be made.
Health insurance policies that cover only specific accidents or diseases.

10. Comprehensive Policy
An agreement between two or more parties enforceable by law.
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 applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

11. Fraternal Benefit Societies
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 method of premium payment - whether annually - semiannually - quarterly - or monthly.
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.
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.

12. Controlled Business
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
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 amount of time an employee has to sign up for a contributory group health plan.

13. Spendthrift Clause
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
A contract offered on a "take-it-or-leave-it" basis by an insurer - in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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

14. Policyholder
The date when the face amount of the life insurance becomes payable.
An agent licensed in a state in which he or she is not a resident.
The person who has possession of the policy - usually the insured.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

15. Admitted (Authorized) Insurer
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
Insurance organizations that have no capital stock - but are owned by the policyholders.
An insurance company authorized and licensed to transact business in a particular state.

16. Surrender
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A facility which is licensed by the state to provide 24 hour nursing care.
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 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.

17. Errors and Omissions Policy (E&O)
Health coverage provided to members of a group.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
A person who relies on another for support and maintenance.

18. 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.
A person who relies on another for support and maintenance.
Protection against loss due to sickness or bodily injury.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

19. Major Medical Insurance
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.
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
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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.

20. Basic Illustration
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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.

21. Standard Provisions
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.
Requirements approved by state law that must appear in all insurance policies.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
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.

22. Authorized (Admitted) Insurer
An insurance company authorized and licensed to transact business in a particular state.
The withholding of known facts which - if material - can void a contract.
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 individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

23. Accident
The date when the face amount of the life insurance becomes payable.
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.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A medical benefits program jointly administered by the individual states and the federal government.

24. Consideration
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 policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
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 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

25. Provider
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.
Any group or individual who provides health care services.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

26. Intermediate Care
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.

27. Carriers
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
Organizations that process claims and pay benefits in an insurance policy
A provision that allows an insurer - at its own expense - to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

28. Omnibus Budget Reconciliation Act
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
Health coverage provided to members of a group.
A liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.
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.

29. Effective Date
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.
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.
Special powers granted to an agent by his or her agency contract.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

30. Accidental Death Insurance

31. Comprehensive Major Medical
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
Canceling the policy with a less than proportionate return of premium.
A periodic payment to the insurance company to keep the policy in force.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

32. Adjustable Life
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
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).

33. Multiple-Employer Trust (MET)
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.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.

34. Universal Life
A combination of a flexible premium and adjustable life insurance.
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.
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 life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

35. Hazard - Moral

36. Group Disability Insurance
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

37. Medical Savings Account
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
An employer-funded account linked to a high deductible medical insurance plan.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).

38. Conditional Contract
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.
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 clause that defines the insurance company's and the insured's right to cancel or renew coverage.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

39. Integrated LTC Rider

40. Cash Value
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
An agreement between two or more parties enforceable by law.
Health coverage provided to members of a group.

41. Principal Amount
The full face value of a policy.
An agreement between two or more parties enforceable by law.
Insurance that pays over and above or in addition to basic policy limits.
Any group or individual who provides health care services.

42. Health Reimburse
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 special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

43. Risk - Pure
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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.

44. Long-Term Disability Insurance
The act that stipulates federal standards for private pension plans.
The person who is named as first to receive benefits from a policy.
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 provision that allows an insurer - at its own expense - to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.

45. Enrollment Period
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.
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 amount of time an employee has to sign up for a contributory group health plan.
A provision that allows an insurer - at its own expense - to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.

46. Twisting

47. Mode of Payment
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

48. Risk - Speculative
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Legal term that distinguishes oral statements from written statements.
The date specified in the policy as the date of termination.
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.

49. Commissioner (Superintendent - Director)
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 mortality table used in life insurance that mathematically predicts the likelihood of death.
Benefits required by state law to be paid to an employee by an employer in the case of injury - disability - or death as the result of an on-the-job hazard.
The chief executive and administrative officer of a state insurance department.

50. Dependent
A contract that provides income for a specified period of years - or for life.
A person who relies on another for support and maintenance.
A claim form that a claimant must submit after a loss occurs.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.