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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. Medicare
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Insurance agent or broker.
Requirements approved by state law that must appear in all insurance policies.

2. Loss of Income Insurance
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
Canceling the policy with a less than proportionate return of premium.
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
An insurance company authorized and licensed to transact business in a particular state.

3. Actual Cash Value (ACV)

4. Annual Statement
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.
A single policy that is designed to insure two or more lives.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

5. Cease and Desist Order
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A demand of a person to stop committing an action that is in violation of a provision.
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

6. Nonresident Agent
An agent licensed in a state in which he or she is not a resident.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A combination of a flexible premium and adjustable life insurance.

7. Ancillary
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
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
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

8. Concealment
A policy premium that remains the same over the period of time premiums are paid.
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 plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
The withholding of known facts which - if material - can void a contract.

9. Fixed Annuity
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
The process of reviewing - accepting or rejecting applications for insurance.
A combination of a flexible premium and adjustable life insurance.
A circumstance that increases the likelihood of a loss.

10. Commingling
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 act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).

11. Illustration
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

12. Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
Health insurance policies that cover only specific accidents or diseases.
A claim form that a claimant must submit after a loss occurs.

13. Alzheimer's Disease
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

14. Lapse
The individual's age when a policy is issued.
Termination of a policy because the premium has not been paid by the end of the grace period.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
The person who is named to receive benefits upon the death of the insured if the (primary) first-named beneficiary is no longer alive or does not collect all the benefits due to his/her own death.

15. Medicare Supplement Insurance
A periodic payment to the insurance company to keep the policy in force.
A provision that specifies to whom claims payments are to be made.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.

16. Buyer's Guide
Any life insurance written on the life of a minor.
An agreement between two or more parties enforceable by law.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

17. Commissioner (Superintendent - Director)
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 optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
The chief executive and administrative officer of a state insurance department.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.

18. Life Expectancy
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).
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
The person who has possession of the policy - usually the insured.
The person who is named to receive benefits upon the death of the insured if the (primary) first-named beneficiary is no longer alive or does not collect all the benefits due to his/her own death.

19. Terminally Ill
A patient who is expected to die within an amount of time specified in the policy.
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.
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 provision that specifies to whom claims payments are to be made.

20. Producer
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
Insurance agent or broker.
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 facility which is licensed by the state to provide 24 hour nursing care.

21. Contract
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
An agreement between two or more parties enforceable by law.
An insurance policy that provides payment if the insured's death is the result of an accident.

22. Flexible Spending Account (FSA)
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

23. Buy-Sell Agreement
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

24. Cafeteria Plan
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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.
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.

25. Agency
An insurance sales office or company.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
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.

26. Basic Hospital Expense Insurance
A claim form that a claimant must submit after a loss occurs.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Insurance that does not pay dividends.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.

27. Hazard - Physical
A material stipulation in the policy that if breached may void coverage.
A demand of a person to stop committing an action that is in violation of a provision.
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.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

28. Actuary
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A person trained in the technical aspects of insurance and related fields - particularly in the mathematics of insurance; a person who - on behalf of the company - determines the mathematical probability of loss.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

29. Administrator
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
Time between the beginning of a disability and the start of disability insurance benefits.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
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.

30. Errors and Omissions Policy (E&O)
An insurance company authorized and licensed to transact business in a particular state.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
The third in line to receive the benefits of a life insurance policy.
Any life insurance written on the life of a minor.

31. Paid-Up Insurance
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
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 policy on which all premiums have been paid but which has not matured due either to death or endowment.

32. Broker
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
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 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 policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.

33. Insurer
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A false statement or lie that can render the contract void.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

34. Policy Loan
Life insurance provided for members of a group.
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.
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 general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.

35. Assignment (Life)
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.
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 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.
The transfer of ownership rights of a life insurance policy from one person to another.

36. Private Insurance
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 percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
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.
Insurance furnished by nongovernmental insuring organizations.

37. Short-Term Disability Insurance
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
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.
The process of reviewing - accepting or rejecting applications for insurance.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

38. Investigative Consumer Report

39. Explanation of Medicare Benefits
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

40. Consideration Clause
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 amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.

41. Nonforfeiture Values
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The act that stipulates federal standards for private pension plans.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.

42. Activities of Daily Living (ADLs)
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.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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 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.

43. Adult Day Care
An insurance policy that provides payment if the insured's death is the result of an accident.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.

44. Supplemental Illustration
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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 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 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.

45. Mode of Payment
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.

46. Tertiary Beneficiary
The third in line to receive the benefits of a life insurance 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 combination of a flexible premium and adjustable life insurance.
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.

47. Fraternal Benefit Societies
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.
A 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.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

48. Boycott
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.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
An insurance sales office or company.

49. Law of Large Numbers
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 method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss who share the losses that occur within that group.
The amount of time an employee has to sign up for a contributory group health plan.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.

50. Option
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
The amount payable upon the death of the person whose life is insured.
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.