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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. Admitted (Authorized) Insurer
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 tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
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 insurance company authorized and licensed to transact business in a particular state.

2. 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.
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 transfer of ownership rights of a life insurance policy from one person to another.
An insurance sales office or company.

3. Accumulation Period
Termination of a policy because the premium has not been paid by the end of the grace period.
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 time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
An insurance company that is incorporated outside the United States.

4. Out-of-Pocket Costs
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
The authority granted to an agent by means of the agent's written contract.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
Any life insurance written on the life of a minor.

5. Flexible Spending Account (FSA)
The person who is named as first to receive benefits from a policy.
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 periodic payment to the insurance company to keep the policy in force.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

6. Lump Sum
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A contract whereby one party (insurer) agrees to indemnify or guarantee another party (insured) against a loss by a specified future contingency or peril in return for payment of a premium.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

7. Life Expectancy
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.

8. Premium
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
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.
A periodic payment to the insurance company to keep the policy in force.
The amount payable upon the death of the person whose life is insured.

9. Co-Pay
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
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.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

10. Face
The first page of a policy.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.
Organizations that process claims and pay benefits in an insurance policy

11. Extended Care Facility
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
A facility which is licensed by the state to provide 24 hour nursing care.
A combination of a flexible premium and adjustable life insurance.

12. Nonqualified Pla
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.
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 time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.

13. Medicare Supplement Insurance
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
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 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 type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.

14. Deductible
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
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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.

15. Estoppel
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A rule that states a contract may not be altered without written consent of both parties; in other words - the contract may not be altered by an oral agreement.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A legal impediment to denying a fact or restoring a right that has been previously waived.

16. Adjuster
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.
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 amount of time an employee has to sign up for a contributory group health plan.
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.

17. Assignment (Health)
Unplanned - unforeseen traumatic injury to the body.
An insurance company that conducts business in the state of incorporation.
An entity certified by the insured's health plan that provides health care services under contract.
A claim to a provider or medical supplier to receive payments directly from Medicare.

18. Exclusions
A provision that specifies to whom claims payments are to be made.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A contract that legally binds only one party to contractual obligations after the premium is paid.

19. Exposure
The cause of a possible loss.
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.
Selling assets as a method of raising capital.
A unit of measure used to determine rates charged for insurance coverage.

20. Rebating
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
Any inducement offered in the sale of insurance products that is not specified in the policy.
Plans designed to help individuals save for qualified health expenses.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

21. Qualified Plan
Insurance that pays over and above or in addition to basic policy limits.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

22. Supplemental Illustration
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.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
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.

23. Periodontics
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
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.
The process of reviewing - accepting or rejecting applications for insurance.
The act that stipulates federal standards for private pension plans.

24. Insolvent organization
A claim form that a claimant must submit after a loss occurs.
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.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.

25. Flexible Premium
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.

26. Persistency
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
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 amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
An insurance company that is incorporated in another state.

27. Notice of Claim

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28. Free Look
A claim to a provider or medical supplier to receive payments directly from Medicare.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
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

29. Certificate
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
A request for payment of the benefits provided by an insurance contract.

30. Fraud
A rule that states a contract may not be altered without written consent of both parties; in other words - the contract may not be altered by an oral agreement.
A rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.

31. Peril
A material stipulation in the policy that if breached may void coverage.
An employer-funded account linked to a high deductible medical insurance plan.
The cause of a possible loss.
To reach the maturity date or time at which the face amount equals cash values.

32. Whole Life Insurance

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33. Noncancelable
The payment made by insurers to agents or brokers for the sale and service of policies.
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 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.
The amount of time an employee has to sign up for a contributory group health plan.

34. Loss
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
The act that stipulates federal standards for private pension plans.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

35. Accelerated Benefits
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
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
The transfer of ownership rights of a life insurance policy from one person to another.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

36. Consideration
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
Legal term that distinguishes oral statements from written statements.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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.

37. Health Savings Accounts (HSAs)
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
Plans designed to help individuals save for qualified health expenses.
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.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.

38. Joint Life
A single policy that is designed to insure two or more lives.
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.
Special powers granted to an agent by his or her agency contract.
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.

39. Surrender
The person who is named as first to receive benefits from a 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.
Legal term that distinguishes oral statements from written statements.
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.

40. Stock Companies
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
Insurance that pays over and above or in addition to basic policy limits.
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.

41. Buy-Sell Agreement
A request for payment of the benefits provided by an insurance contract.
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 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.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

42. Over Insurance
Choices available to the insured/owner for distribution of insurance proceeds.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
The amount of time an employee has to sign up for a contributory group health plan.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.

43. Adjustable Life
A fee or commission charged at the time of purchase of an annuity or a security.
A request for payment of the benefits provided by an insurance contract.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

44. Fraternal Benefit Societies
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
An insurance company that conducts business in the state of incorporation.
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.

45. Fixed Annuity
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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 general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

46. Front-End Load
A fee or commission charged at the time of purchase of an annuity or a security.
The person who has possession of the policy - usually the insured.
An insurance company authorized and licensed to transact business in a particular state.
Insurance organizations that have no capital stock - but are owned by the policyholders.

47. Alzheimer's Disease
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
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.

48. Accidental Death Benefits
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.
The amount of time an employee has to sign up for a contributory group health plan.
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.
The full face value of a policy.

49. Risk - Standard
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

50. Comprehensive Policy
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 plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A group insurance plan that requires the employees to pay part of the premium.
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.