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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. Presumptive Disability
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

2. Reserve
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
A legal impediment to denying a fact or restoring a right that has been previously waived.

3. Agent
The transfer of ownership rights of a life insurance policy from one person to another.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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 special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

4. Earned Premium
The amount of the premium for which the policy protection has been given.
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.
An employer-funded account linked to a high deductible medical insurance plan.
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.

5. Carriers
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Organizations that process claims and pay benefits in an insurance policy
A medical benefits program jointly administered by the individual states and the federal government.

6. Workers Compensation
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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.
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 type of insurance that pays benefits for medical - surgical - and hospital costs.

7. Flexible Premium
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.

8. Defamation

9. Aleatory
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A policy premium that remains the same over the period of time premiums are paid.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
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.

10. Claim
A request for payment of the benefits provided by an insurance contract.
The amount of time an employee has to sign up for a contributory group health plan.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.

11. Accelerated Benefits
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

12. Oral Surgery
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A policy premium that remains the same over the period of time premiums are paid.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

13. Out-of-Pocket Costs
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
The amount of time an employee has to sign up for a contributory group health plan.
Insurance furnished by nongovernmental insuring organizations.

14. Excess Insurance
The person who receives the proceeds from the policy when the insured dies.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Insurance that pays over and above or in addition to basic policy limits.
A form of misrepresentation in which an agent persuades an insured/owner to cancel - lapse - or switch policies - even when it's to the insured's disadvantage.

15. Certificate of Authority
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 form changing the provisions of and attached to a life insurance policy (also known as a rider).
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 authority granted to an agent by means of the agent's written contract.

16. Cash Value
The date when the face amount of the life insurance becomes payable.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.

17. Mode of Payment
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
The amount a physician or supplier actually bills for a particular service or supply.
The effect a person's indifference concerning loss has on the risk to be insured.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

18. Universal Life
A false statement or lie that can render the contract void.
A combination of a flexible premium and adjustable life insurance.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A unit of measure used to determine rates charged for insurance coverage.

19. Adhesion

20. Natural Premium
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.
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.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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.

21. Coinsurance
Selling assets as a method of raising capital.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
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.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

22. Preferred Provider Organization (PPO)

23. Health Savings Accounts (HSAs)
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
A statement usually obtained from the applicant's doctor.
Care that is rendered to help an insured complete his/her activities of daily living.
Plans designed to help individuals save for qualified health expenses.

24. Hazard - Physical
Insurance furnished by nongovernmental insuring organizations.
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 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 group insurance plan that requires the employees to pay part of the premium.

25. Joint Life
A single policy that is designed to insure two or more lives.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.

26. Insurer
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
The cause of a possible loss.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

27. Physical Exam and Autopsy
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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 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. Living Benefits Rider
A physical illness - disease - or pregnancy - but not a mental illness.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
The difference between the Medicare approved amount for a service or supply and the actual charge.

29. Risk - Pure
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 whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Disability from which the insured does not recover.

30. Payor Benefit
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.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

31. Single Premium Whole Life (SPWL)

32. Life Expectancy
An agent/broker who handles insurer's funds in a trust capacity.
A claim to a provider or medical supplier to receive payments directly from Medicare.
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

33. Custodial Car
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
Health coverage provided to members of a group.
The person or organization that is protected by insurance; the party to be indemnified.
Care that is rendered to help an insured complete his/her activities of daily living.

34. Superintendent (Commissioner - Director)
Withdrawing the money from a qualified plan and placing it into another qualified plan.
The head of the state department of insurance.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.

35. Limited-Pay Whole Life

36. Buy-Sell Agreement
An insurance sales office or company.
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
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

37. Utmost Good Faith
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.
The effect a person's indifference concerning loss has on the risk to be insured.
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.
Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage - or a waiver of a coverage or condition.

38. Surrender
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
Insurance that pays dividends to policyholders.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
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.

39. Term Insurance
The act that stipulates federal standards for private pension plans.
Insurance that provides protection for a specific period of time.
The amount payable upon the death of the person whose life is insured.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

40. Coercion
The transfer of ownership rights of a life insurance policy from one person to another.
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'
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

41. Benefit Period
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.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
An entity certified by the insured's health plan that provides health care services under contract.

42. Sharing
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.
Special powers granted to an agent by his or her agency contract.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

43. Long-Term Disability Insurance
The person who is named as first to receive benefits from a policy.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Choices available to the insured/owner for distribution of insurance proceeds.
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.

44. Express Authority

45. Coordination of Benefits
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
A principle stating that the larger the number of similar exposure units considered - the more closely the losses reported will equal the underlying probability of loss.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
The payment made by insurers to agents or brokers for the sale and service of policies.

46. Right to Return (aka Free Look)
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
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 liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.

47. Health Insurance
Protection against loss due to sickness or bodily injury.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
A unit of measure used to determine rates charged for insurance coverage.

48. Insuring Clause
A physical or mental impairment - either congenital or resulting from an injury or sickness.
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 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 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.

49. Activities of Daily Living (ADLs)
An agent licensed in a state in which he or she is not a resident.
The amount a physician or supplier actually bills for a particular service or supply.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

50. Primary Beneficiary
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.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A financial interest in the life of another person; a possibility of losing something of value if the insured should die. In life and health insurance - insurable interest must be stated at the time of policy issue.
The person who is named as first to receive benefits from a policy.