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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. Transfer
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A temporary contract that puts an insurance policy into force before the premium has been paid.

2. Basic Illustration
A fee or commission charged at the time of purchase of an annuity or a security.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

3. Decreasing Term
An entity certified by the insured's health plan that provides health care services under contract.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
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.

4. Reinsurance
A demand of a person to stop committing an action that is in violation of a provision.
The age of the insured at a determined date.
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.
A claim to a provider or medical supplier to receive payments directly from Medicare.

5. Noncancelable
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 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 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.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.

6. Straight Life
A federal requirement that employers who have 25 or more employees - who are within the service area of a qualified HMO - who pay minimum wage - and offer a health plan - must offer HMO coverage as well as an indemnity plan.
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 provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.

7. Medicare
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Choices available to the insured/owner for distribution of insurance proceeds.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

8. Hazard
The age of the insured at a determined date.
A circumstance that increases the likelihood of a loss.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.

9. Physical Exam and Autopsy
Withdrawing the money from a qualified plan and placing it into another qualified plan.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
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.

10. Coinsurance Clause
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 provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.
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
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

11. Activities of Daily Living (ADLs)
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
An agent/broker who handles insurer's funds in a trust capacity.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A material stipulation in the policy that if breached may void coverage.

12. Qualified Plan
The act of signing an insurance policy by a licensed resident agent.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Any inducement offered in the sale of insurance products that is not specified in the policy.
Choices available to the insured/owner for distribution of insurance proceeds.

13. Boycott
A physical illness - disease - or pregnancy - but not a mental illness.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

14. Concealment
The withholding of known facts which - if material - can void a contract.
The person or organization that is protected by insurance; the party to be indemnified.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

15. Multiple-Employer Trust (MET)
An insurance company authorized and licensed to transact business in a particular state.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

16. Standard Provisions
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
Requirements approved by state law that must appear in all insurance policies.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

17. Provider
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The authority granted to an agent by means of the agent's written contract.
Any group or individual who provides health care services.

18. Implied Authority
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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.
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.

19. Exposure
A unit of measure used to determine rates charged for insurance coverage.
The authority granted to an agent by means of the agent's written contract.
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.

20. 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.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
Protection against loss due to sickness or bodily injury.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

21. Endorsement
An insurance company that is incorporated outside the United States.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

22. 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.
Insurance that pays dividends to policyholders.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

23. Paid-Up Insurance
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An entity certified by the insured's health plan that provides health care services under contract.

24. Domestic Insurer
Insurance that does not pay dividends.
An insurance company that conducts business in the state of incorporation.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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.

25. Dual Choice
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 process of reviewing - accepting or rejecting applications for insurance.
A federal requirement that employers who have 25 or more employees - who are within the service area of a qualified HMO - who pay minimum wage - and offer a health plan - must offer HMO coverage as well as an indemnity plan.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.

26. Indemnify
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Special powers granted to an agent by his or her agency contract.
The authority granted to an agent by means of the agent's written contract.

27. Excess Charge
The transfer of ownership rights of a life insurance policy from one person to another.
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.
The person who has possession of the policy - usually the insured.
The difference between the Medicare approved amount for a service or supply and the actual charge.

28. Group Health Insurance
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
Health coverage provided to members of a group.
A table showing the probability of death at specified ages.

29. Waiver
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 voluntary abandonment of a known or legal right or advantage.
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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

30. Valued Contract
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 acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).

31. Enrollment Period
A material stipulation in the policy that if breached may void coverage.
The amount of time an employee has to sign up for a contributory group health plan.
Plans designed to help individuals save for qualified health expenses.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.

32. Payor Benefit
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
The amount payable upon the death of the person whose life is insured.
A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor.
The act of signing an insurance policy by a licensed resident agent.

33. Cash Value
The effect a person's indifference concerning loss has on the risk to be insured.
Disability from which the insured does not recover.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.

34. Accident
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
Plans designed to help individuals save for qualified health expenses.

35. Explanation of Medicare Benefits
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
The chief executive and administrative officer of a state insurance department.
A legal impediment to denying a fact or restoring a right that has been previously waived.
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.

36. Notice of Claim

37. Actuary
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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.
The withholding of known facts which - if material - can void a contract.
Insurance that pays dividends to policyholders.

38. Exclusions
A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
Daily nursing care or skilled care - such as administration of medication - diagnosis - or minor surgery that is performed by or under the supervision of a skilled professional.
An insurance policy that provides payment if the insured's death is the result of an accident.

39. Periodontics
Insurance furnished by nongovernmental insuring organizations.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
The act that stipulates federal standards for private pension plans.

40. Defamation

41. Endodontics
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.
A termination of a policy by an insurer on the anniversary or renewal date.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The first page of a policy.

42. Rescission
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
The head of the state department of insurance.
An agent licensed in a state in which he or she is not a resident.
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.

43. Intentional Injury
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 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 entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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.

44. Health Insurance
Insurance that does not pay dividends.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A patient who is expected to die within an amount of time specified in the policy.
Protection against loss due to sickness or bodily injury.

45. Insurability

46. Basic Medical Expense Insurance
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
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.

47. Consideration
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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 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
The authority granted to an agent by means of the agent's written contract.

48. Insurable Interest
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.
An insurance company authorized and licensed to transact business in a particular state.
The person who has possession of the policy - usually the insured.

49. Comprehensive Major Medical
The head of the state department of insurance.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A periodic payment to the insurance company to keep the policy in force.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

50. Level Premium
A policy premium that remains the same over the period of time premiums are paid.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The first page of a policy.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.