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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. Prosthodontics
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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 statement sent to a Medicare patient indicating how the Medicare claim will be settled.
Authority that is not expressed or written into the contract - but which the agent is assumed to have in order to transact the business of insurance for the principal.

2. Adjustable Life
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
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

3. Exposure
A unit of measure used to determine rates charged for insurance coverage.
Insurance that does not pay dividends.
Disability from which the insured does not recover.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

4. Superintendent (Commissioner - Director)
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
The head of the state department of insurance.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A contract that legally binds only one party to contractual obligations after the premium is paid.

5. Medical Savings Account
Special powers granted to an agent by his or her agency contract.
An employer-funded account linked to a high deductible medical insurance plan.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
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.

6. Activities of Daily Living (ADLs)
Organizations that process claims and pay benefits in an insurance policy
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
Termination of a policy because the premium has not been paid by the end of the grace period.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

7. Policyholder
The person who has possession of the policy - usually the insured.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
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 temporary contract that puts an insurance policy into force before the premium has been paid.

8. Term Insurance
Insurance that provides protection for a specific period of time.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
An insurance sales office or company.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.

9. Birthday Rule
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
An agreement between two or more parties enforceable by law.
The method of determining primary coverage for a dependent child - under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.

10. Fiduciary

11. Countersignature
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
A medical benefits program jointly administered by the individual states and the federal government.
The act of signing an insurance policy by a licensed resident agent.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

12. Limiting Charge
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 age of the insured at a determined date.
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.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.

13. Pure Protection
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
The payment made by insurers to agents or brokers for the sale and service of policies.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

14. Boycott
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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 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.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

15. Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Protection against loss due to sickness or bodily injury.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
An insurance company authorized and licensed to transact business in a particular state.

16. Disability Income Insurance

17. Ancillary
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
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.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.

18. Probationary Period
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

19. Private 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 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.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
Insurance furnished by nongovernmental insuring organizations.

20. Nonresident Agent
An agent licensed in a state in which he or she is not a resident.
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.
The chief executive and administrative officer of a state insurance department.
A periodic payment to the insurance company to keep the policy in force.

21. Basic Hospital Expense Insurance
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.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
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).
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.

22. Nonmedical

23. Actual Cash Value (ACV)

24. Morbidity Rate
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.
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 specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

25. Stock Companies
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
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.
A patient who is expected to die within an amount of time specified in the policy.

26. Endow
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
To reach the maturity date or time at which the face amount equals cash values.
A fee or commission charged at the time of purchase of an annuity or a security.

27. CSO Table (The Commissioner's Standard Ordinary Table)
A mortality table used in life insurance that mathematically predicts the likelihood of death.
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
Insurance that does not pay dividends.
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.

28. Co-Pay
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.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

29. 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.
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 table showing the probability of death at specified ages.
Choices available to the insured/owner for distribution of insurance proceeds.

30. Coinsurance
A statement usually obtained from the applicant's doctor.
The method of determining primary coverage for a dependent child - under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary.
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
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

31. Rescission
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.
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.
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.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

32. Benefit Period
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Insurance that pays dividends to policyholders.
Requirements approved by state law that must appear in all insurance policies.
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.

33. Basic Medical Expense Insurance
A temporary contract that puts an insurance policy into force before the premium has been paid.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
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.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

34. Option
The full face value of a policy.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.

35. Spendthrift 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.
A claim to a provider or medical supplier to receive payments directly from Medicare.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

36. Over Insurance
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
A model of HMO and PPO organizations that uses the insured's primary care physician (the gatekeeper) as the initial contact for the patient for medical care and for referrals.

37. Application
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A temporary contract that puts an insurance policy into force before the premium has been paid.
The third in line to receive the benefits of a life insurance policy.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

38. Explanation of Medicare Benefits
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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.
To reach the maturity date or time at which the face amount equals cash values.
The portion of premium for which policy protection has not yet been given.

39. Non-participating Policies (Non-par)
Time between the beginning of a disability and the start of disability insurance benefits.
Health insurance policies that cover only specific accidents or diseases.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
Insurance that does not pay dividends.

40. Joint Life
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 single policy that is designed to insure two or more lives.
The payment made by insurers to agents or brokers for the sale and service of policies.
A unit of measure used to determine rates charged for insurance coverage.

41. Restorative Care
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.
The termination of an insurance contract due either to material misrepresentation by the insured or by fraud - misrepresentation - or duress on the part of the agent/insurer.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

42. Oral Surgery
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
An insurance policy that provides payment if the insured's death is the result of an accident.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

43. Natural Premium
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
To reach the maturity date or time at which the face amount equals cash values.
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.
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.

44. Aleatory
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.
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 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.
The head of the state department of insurance.

45. Excess Charge
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
The person who receives the proceeds from the policy when the insured dies.
The difference between the Medicare approved amount for a service or supply and the actual charge.

46. Effective Date
The date when an insurance policy begins (also known as the inception date). The period of time in which an employee may enroll in a group health care plan without having to provide evidence of insurability.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
The cause of a possible loss.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

47. Long-Term Disability Insurance
A termination of a policy by an insurer on the anniversary or renewal date.
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 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 waiting period that is imposed on the insured from the onset of disability until benefit payments begin.

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

49. Face
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
An insurance company that conducts business in the state of incorporation.
The first page of a policy.

50. Medical Information Bureau (MIB)
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 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 medical benefits program jointly administered by the individual states and the federal government.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.