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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. Payor Benefit
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A temporary contract that puts an insurance policy into force before the premium has been paid.
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.

2. Loss of Income Insurance
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

3. Countersignature
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.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
The act of signing an insurance policy by a licensed resident agent.

4. Endodontics
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A physical illness - disease - or pregnancy - but not a mental illness.

5. Utmost Good Faith
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 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.
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 physical or mental impairment - either congenital or resulting from an injury or sickness.

6. Limited Policies
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
Health insurance policies that cover only specific accidents or diseases.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.

7. Universal Life
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.
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.
The transfer of ownership rights of a life insurance policy from one person to another.
A combination of a flexible premium and adjustable life insurance.

8. Hazard - Physical
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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 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.

9. Nonqualified Pla
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 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.
Unplanned - unforeseen traumatic injury to the body.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

10. Basic Illustration
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

11. Whole Life Insurance

12. Valued Contract
Insurance that pays over and above or in addition to basic policy limits.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
Choices available to the insured/owner for distribution of insurance proceeds.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).

13. Admitted (Authorized) Insurer
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
An insurance company authorized and licensed to transact business in a particular state.

14. Risk Retention Group
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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 liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.
The first page of a policy.

15. Free Look
Insurance that provides protection for a specific period of time.
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 choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A contract that legally binds only one party to contractual obligations after the premium is paid.

16. Conditional Contract
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
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.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.

17. Lump Sum
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
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.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.

18. Renewable Term
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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.
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

19. Endorsement
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 form changing the provisions of and attached to a life insurance policy (also known as a rider).
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 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.

20. Fixed Annuity
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
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 annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.

21. Dual Choice
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.
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 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 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

22. Mutual Companies
Insurance organizations that have no capital stock - but are owned by the policyholders.
The transfer of ownership rights of a life insurance policy from one person to another.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.

23. Partial Disability

24. Private Insurance
Insurance furnished by nongovernmental insuring organizations.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
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 physical illness - disease - or pregnancy - but not a mental illness.

25. Living Benefits Rider
A basic principle of insurance under which the risk of financial loss is assigned to another party.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

26. Explanation of Benefits (EOB)
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

27. Waiver of Cost
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A request for payment of the benefits provided by an insurance contract.
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 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.

28. Standard Provisions
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.
Requirements approved by state law that must appear in all insurance policies.
An employer-funded account linked to a high deductible medical insurance plan.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

29. Terminally Ill
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.
A patient who is expected to die within an amount of time specified in the policy.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
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.

30. Investigative Consumer Report

31. 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 required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
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.
Insurance agent or broker.

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

33. Coinsurance
A unit of measure used to determine rates charged for insurance coverage.
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
The age of the insured at a determined date.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

34. Reserve
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Uncertainty as to the outcome of an event when two or more possibilities exist.

35. Residual Disability
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.
Protection against loss due to sickness or bodily injury.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

36. Dread (Specified) Disease Policy
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
A patient who is expected to die within an amount of time specified in the policy.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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

37. Attained Age
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.
The voluntary abandonment of a known or legal right or advantage.
The age of the insured at a determined date.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

38. Morbidity Table
A policy premium that remains the same over the period of time premiums are paid.
Health coverage provided to members of a group.
A table showing the incidence of sickness at specified ages.
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.

39. Long-Term Disability Insurance
A type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident.
An insurance company authorized and licensed to transact business in a particular state.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
The head of the state department of insurance.

40. Group Disability Insurance
Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability - but is still not able to perform at the same level as before becoming disabled.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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
The amount a physician or supplier actually bills for a particular service or supply.

41. Certificate of Authority
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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.
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.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

42. Joint Life
A single policy that is designed to insure two or more lives.
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.

43. Dependent
A person who relies on another for support and maintenance.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
Health insurance policies that cover only specific accidents or diseases.

44. Primary Policy
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 basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A temporary contract that puts an insurance policy into force before the premium has been paid.

45. Rescission
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
Any inducement offered in the sale of insurance products that is not specified in the policy.
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.
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.

46. Oral Surgery
Any inducement offered in the sale of insurance products that is not specified in the policy.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

47. Producer
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
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
Insurance agent or broker.
Plans designed to help individuals save for qualified health expenses.

48. Single Premium Whole Life (SPWL)

49. Death Benefit
Health insurance policies that cover only specific accidents or diseases.
A variation of whole life insurance that charges a level annual premium and provides a level - guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that
The amount payable upon the death of the person whose life is insured.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

50. Integrated LTC Rider