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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. Term Insurance
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
Insurance that provides protection for a specific period of time.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

2. Personal Contract

3. Rescission
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
Uncertainty as to the outcome of an event when two or more possibilities exist.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
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.

4. Notice of Claim

5. Medicare
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
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.
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.

6. Attained Age
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
The person or organization that is protected by insurance; the party to be indemnified.
The age of the insured at a determined date.
Time between the beginning of a disability and the start of disability insurance benefits.

7. Peril
The cause of a possible loss.
Any entity of at least two employers - other than a duly admitted insurer - that establishes an employee benefit plan for the purpose of offering or providing accident and sickness or death benefits to the employees.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

8. Nonadmitted (Nonauthorized)
Requirements approved by state law that must appear in all insurance policies.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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 retirement plan that meets the IRS guidelines for receiving favorable tax treatment.

9. Legal Reserve

10. Boycott
Lessening the possibility or severity of a loss.
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 fee or commission charged at the time of purchase of an annuity or a security.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

11. Cash Value
The act of signing an insurance policy by a licensed resident agent.
Health insurance policies that cover only specific accidents or diseases.
The transfer of ownership rights of a life insurance policy from one person to another.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.

12. Issue Age

13. Warranty
A material stipulation in the policy that if breached may void coverage.
Health coverage provided to members of a group.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

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 professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
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.

15. Free Look
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to
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
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.

16. Accelerated Benefits
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A rule that states a contract may not be altered without written consent of both parties; in other words - the contract may not be altered by an oral agreement.

17. Attending Physician's Statement (APS)

18. Executory Contract
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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.
The date when the face amount of the life insurance becomes payable.

19. Rebating
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
To reach the maturity date or time at which the face amount equals cash values.
Any inducement offered in the sale of insurance products that is not specified in the policy.
Unplanned - unforeseen traumatic injury to the body.

20. Multiple Employer Welfare Association (MEWA)
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.
A unit of measure used to determine rates charged for insurance coverage.
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.
Any entity of at least two employers - other than a duly admitted insurer - that establishes an employee benefit plan for the purpose of offering or providing accident and sickness or death benefits to the employees.

21. Recurrent Disability
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
Health insurance policies that cover only specific accidents or diseases.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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.

22. Nonforfeiture Values
A medical benefits program jointly administered by the individual states and the federal government.
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 has not applied for - or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.

23. Natural Premium
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
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.
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 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.

24. Reduction
Life insurance provided for members of a group.
Lessening the possibility or severity of a loss.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

25. Policy Loan
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 annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.

26. Extended Care Facility
The person who is named as first to receive benefits from a policy.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
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 facility which is licensed by the state to provide 24 hour nursing care.

27. Emergency
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.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
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 amount of time an employee has to sign up for a contributory group health plan.

28. Health Reimburse
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
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.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
A termination of a policy by an insurer on the anniversary or renewal date.

29. Respite Care
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.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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.

30. Limited Policies
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.
Health insurance policies that cover only specific accidents or diseases.
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.
An insurance company that conducts business in the state of incorporation.

31. Intermediate Care
The voluntary abandonment of a known or legal right or advantage.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
To reach the maturity date or time at which the face amount equals cash values.

32. Primary Beneficiary
A provision that specifies to whom claims payments are to be made.
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
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
The person who is named as first to receive benefits from a policy.

33. Fixed Annuity
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.
Termination of a policy because the premium has not been paid by the end of the grace period.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

34. Substandard Risk
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 accounting measurement of an insurer's future obligations to pay claims to policyowners.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

35. Contributory
A group insurance plan that requires the employees to pay part of the premium.
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.
Special powers granted to an agent by his or her agency contract.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

36. Superintendent (Commissioner - Director)
Health coverage provided to members of a group.
The head of the state department of insurance.
A request for payment of the benefits provided by an insurance contract.
A single policy that is designed to insure two or more lives.

37. Nonqualified Pla
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 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 act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A fee or commission charged at the time of purchase of an annuity or a security.

38. Binder (Binding Receipt)
A temporary contract that puts an insurance policy into force before the premium has been paid.
An agent licensed in a state in which he or she is not a resident.
Legal term that distinguishes oral statements from written statements.
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.

39. Accidental Death and Dismemberment (AD&D)

40. Approved Amount
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
A unit of measure used to determine rates charged for insurance coverage.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.

41. Errors and Omissions Policy (E&O)
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
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.
Care that is rendered to help an insured complete his/her activities of daily living.

42. Lapse
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A person who relies on another for support and maintenance.
Termination of a policy because the premium has not been paid by the end of the grace period.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

43. Buy-Sell Agreement
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

44. Claim
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 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.
A request for payment of the benefits provided by an insurance contract.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

45. Policyowner
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
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 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.
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.

46. Home Health Care
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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.
A circumstance that increases the likelihood of a loss.
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.

47. Beneficiary
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
The individual's age when a policy is issued.
The person who receives the proceeds from the policy when the insured dies.

48. Subrogation
The person who has possession of the policy - usually the insured.
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.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
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. Pure Protection
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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.
Organizations that process claims and pay benefits in an insurance policy
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

50. Deductible
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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.