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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. Accidental Death Insurance

2. Actual Cash Value (ACV)

3. Premium
A periodic payment to the insurance company to keep the policy in force.
A type of insurance that pays benefits for medical - surgical - and hospital costs.
An agent licensed in a state in which he or she is not a resident.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

4. Rider
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.
The chief executive and administrative officer of a state insurance department.
Legal term that distinguishes oral statements from written statements.
The amount payable upon the death of the person whose life is insured.

5. Risk Retention Group
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'
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.
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.
The amount of the premium for which the policy protection has been given.

6. Orthodontics
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 request for payment of the benefits provided by an insurance contract.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

7. Group Life
Life insurance provided for members of a group.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
The date when the face amount of the life insurance becomes payable.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

8. Commingling
The person who is named to receive benefits upon the death of the insured if the (primary) first-named beneficiary is no longer alive or does not collect all the benefits due to his/her own death.
A policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.

9. Warranty
A material stipulation in the policy that if breached may void coverage.
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.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
The person who receives the proceeds from the policy when the insured dies.

10. Claim
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
A request for payment of the benefits provided by an insurance contract.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

11. 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
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
Care that is rendered to help an insured complete his/her activities of daily living.
An insurance company that conducts business in the state of incorporation.

12. Adult Day Care
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.

13. Deductible
Health insurance policies that cover only specific accidents or diseases.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

14. Joint Life
Requirements approved by state law that must appear in all insurance policies.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
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 single policy that is designed to insure two or more lives.

15. Substandard Risk
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
Insurance agent or broker.
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 applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

16. Credit Life Insurance
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

17. Maturity Date
A group insurance plan that requires the employees to pay part of the premium.
The date when the face amount of the life insurance becomes payable.
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.
A contract that legally binds only one party to contractual obligations after the premium is paid.

18. Aleatory
Choices available to the insured/owner for distribution of insurance proceeds.
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.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
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.

19. Residual Disability
Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability - but is still not able to perform at the same level as before becoming disabled.
Plans designed to help individuals save for qualified health expenses.
Insurance furnished by nongovernmental insuring organizations.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

20. Basic Illustration
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.

21. Viatical Settlement
A type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident.
An 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.
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.
Any group or individual who provides health care services.

22. Basic Hospital Expense Insurance
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
An insurance company authorized and licensed to transact business in a particular state.

23. Apparent Authority
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
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 material stipulation in the policy that if breached may void coverage.
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.

24. Buyer's Guide
The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third party who may have caused the loss.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
The payment made by insurers to agents or brokers for the sale and service of policies.
The act that stipulates federal standards for private pension plans.

25. Policyholder
The person who has possession of the policy - usually the insured.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
Insurance organizations that have no capital stock - but are owned by the policyholders.
To reach the maturity date or time at which the face amount equals cash values.

26. Fair Credit Reporting Act
Health and social services provided under the supervision of physicians and medical health professionals for persons with chronic diseases or disabilities. Care is usually provided in a Long-Term Care Facility which is a state licensed facility that
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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
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.

27. Accidental Bodily Injury
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
Unplanned - unforeseen traumatic injury to the body.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

28. Accident
A unit of measure used to determine rates charged for insurance coverage.
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.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.

29. Annuity
A contract that provides income for a specified period of years - or for life.
Unplanned - unforeseen traumatic injury to the body.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

30. Rate Service Organization
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.
To reach the maturity date or time at which the face amount equals cash values.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
The person who receives the proceeds from the policy when the insured dies.

31. Medigap
A claim form that a claimant must submit after a loss occurs.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
The age of the insured at a determined date.

32. Back-End Load
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

33. Preferred Risk
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
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.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

34. Coinsurance Clause
Legal term that distinguishes oral statements from written statements.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.

35. Disability Income Insurance

36. Applicant
A person making application for - or offering him/herself or another to be insured under an insurance contract.
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 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.

37. Reciprocity

38. Pro Rata Cancellation
Time between the beginning of a disability and the start of disability insurance benefits.
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 type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

39. Out-of-Pocket Costs
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
The third in line to receive the benefits of a life insurance policy.

40. Persistency
Organizations that process claims and pay benefits in an insurance policy
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
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 infectious and incurable disease caused by the human immunodeficiency virus (HIV).

41. Comprehensive Major Medical
The age of the insured at a determined date.
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 portion of premium for which policy protection has not yet been given.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

42. Loss
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

43. Underwriting
The process of reviewing - accepting or rejecting applications for insurance.
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 third in line to receive the benefits of a life insurance policy.
A contract that provides income for a specified period of years - or for life.

44. Basic Medical Expense Insurance
A unit of measure used to determine rates charged for insurance coverage.
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 applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

45. Prosthodontics
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A type of hazard that arises from the physical characteristics of an individual - such as a physical disability due to either current circumstance or a condition present at birth.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

46. Insurance
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
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 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.
The payment made by insurers to agents or brokers for the sale and service of policies.

47. Annual Statement
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 acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

48. Respite Care
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
An insurance policy that provides payment if the insured's death is the result of an accident.
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
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

49. Consideration
The effect a person's indifference concerning loss has on the risk to be insured.
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
A facility which is licensed by the state to provide 24 hour nursing care.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

50. Extension of Benefits