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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. Group Life
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.
An insurance company authorized and licensed to transact business in a particular state.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
Life insurance provided for members of a group.

2. Medicare
Unplanned - unforeseen traumatic injury to the body.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
The effect a person's indifference concerning loss has on the risk to be insured.
The amount payable upon the death of the person whose life is insured.

3. Blanket Medical Insurance
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
An insurance company that is incorporated in another state.
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.
Requirements approved by state law that must appear in all insurance policies.

4. Secondary Beneficiary
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.
The effect a person's indifference concerning loss has on the risk to be insured.
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

5. Excess Insurance
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
A 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 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.
Insurance that pays over and above or in addition to basic policy limits.

6. Alzheimer's Disease
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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
The amount of the premium for which the policy protection has been given.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

7. Director (Commissioner - Superintendent)
The voluntary abandonment of a known or legal right or advantage.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A claim form that a claimant must submit after a loss occurs.
The head of the state department of insurance.

8. Substandard Risk
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.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Health coverage provided to members of a group.

9. Nonrenewal
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 ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.
A termination of a policy by an insurer on the anniversary or renewal date.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.

10. Hospital Confinement Rider
The authority granted to an agent by means of the agent's written contract.
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

11. Insurability

12. Admitted (Authorized) Insurer
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
A contract that legally binds only one party to contractual obligations after the premium is paid.
An insurance company authorized and licensed to transact business in a particular state.
Protection against loss due to sickness or bodily injury.

13. Long-Term Disability Insurance
Insurance that pays over and above or in addition to basic policy limits.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
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 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.

14. Orthodontics
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
An insurance company authorized and licensed to transact business in a particular state.

15. Right to Return (aka Free Look)
Unplanned - unforeseen traumatic injury to the body.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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
The person who receives the proceeds from the policy when the insured dies.

16. Defamation

17. Nonresident Agent
An agent licensed in a state in which he or she is not a resident.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
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 provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.

18. Accidental Death and Dismemberment (AD&D)

19. Exclusions
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

20. Persistency
A policy premium that remains the same over the period of time premiums are paid.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
A demand of a person to stop committing an action that is in violation of a provision.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

21. Deductible
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
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.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

22. Underwriting
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.
The process of reviewing - accepting or rejecting applications for insurance.
Health coverage provided to members of a group.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

23. Cafeteria Plan
A selection of health care benefits from which an employee may choose the ones that he/she needs.
The payment made by insurers to agents or brokers for the sale and service of policies.
Legal term that distinguishes oral statements from written statements.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

24. Permanent Life Insurance
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A false statement or lie that can render the contract void.

25. Term Insurance
Any inducement offered in the sale of insurance products that is not specified in the policy.
Insurance that provides protection for a specific period of time.
The amount a physician or supplier actually bills for a particular service or supply.
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.

26. Liquidation
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 plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
Selling assets as a method of raising capital.

27. Waiting Period
A type of insurance that pays benefits for medical - surgical - and hospital costs.
Time between the beginning of a disability and the start of disability insurance benefits.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

28. Personal Contract

29. Domestic Insurer
A person making application for - or offering him/herself or another to be insured under an insurance contract.
A legal impediment to denying a fact or restoring a right that has been previously waived.
Plans designed to help individuals save for qualified health expenses.
An insurance company that conducts business in the state of incorporation.

30. Mode of Payment
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 method of premium payment - whether annually - semiannually - quarterly - or monthly.
The difference between the Medicare approved amount for a service or supply and the actual charge.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

31. Major Medical Insurance
Insurance agent or broker.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
The amount a physician or supplier actually bills for a particular service or supply.
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.

32. Binder (Binding Receipt)
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
The individual's age when a policy is issued.
A temporary contract that puts an insurance policy into force before the premium has been paid.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

33. Mortality Table
The effect a person's indifference concerning loss has on the risk to be insured.
A table showing the probability of death at specified ages.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

34. Preferred Provider Organization (PPO)

35. Total Disability
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
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 level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.

36. Health Reimburse
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A statement usually obtained from the applicant's doctor.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

37. Premium
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A periodic payment to the insurance company to keep the policy in force.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.

38. Errors and Omissions Policy (E&O)
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
Any life insurance written on the life of a minor.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).

39. Natural Premium
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
The amount of premium that must be collected from each member of a group composed of the same age - sex and risk in order to pay $1 -000 for each death that will occur in the group each year.

40. Basic Illustration
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.

41. Primary Beneficiary
Insurer's location of incorporation and the legal ability to write business in a state.
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 special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
The person who is named as first to receive benefits from a policy.

42. Unilateral Contract
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A contract that legally binds only one party to contractual obligations after the premium is paid.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.

43. Convertible
Canceling the policy with a less than proportionate return of premium.
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).
Insurance that pays over and above or in addition to basic policy limits.
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.

44. Certificate
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
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.

45. Limiting Charge
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
The transfer of ownership rights of a life insurance policy from one person to another.
A circumstance that increases the likelihood of a loss.

46. Employee RetirementIncome Security Act (ERISA)
The act that stipulates federal standards for private pension plans.
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.
To reach the maturity date or time at which the face amount equals cash values.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

47. Nonadmitted (Nonauthorized)
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.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
A temporary contract that puts an insurance policy into force before the premium has been paid.

48. Workers Compensation
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
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.
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.

49. Accumulation Period
A patient who is expected to die within an amount of time specified in the 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.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

50. Commissioner (Superintendent - Director)
Organizations that process claims and pay benefits in an insurance policy
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
The chief executive and administrative officer of a state insurance department.
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.