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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. Conditional Contract
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.

2. Enrollment Period
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
The amount of time an employee has to sign up for a contributory group health plan.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Insurance organizations that have no capital stock - but are owned by the policyholders.

3. Terminally Ill
A patient who is expected to die within an amount of time specified in the policy.
A situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).
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.
The difference between the Medicare approved amount for a service or supply and the actual charge.

4. Director (Commissioner - Superintendent)
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
The date specified in the policy as the date of termination.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
The head of the state department of insurance.

5. Home Health Services
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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

6. Basic Illustration
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.

7. Parol
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
Legal term that distinguishes oral statements from written statements.
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 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.

8. Coinsurance
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
Choices available to the insured/owner for distribution of insurance proceeds.
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.
The individual's age when a policy is issued.

9. Insuring Clause
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 form changing the provisions of and attached to a life insurance policy (also known as a rider).
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 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.

10. Avoidance
A contract that provides income for a specified period of years - or for life.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash - he/she might choose never to fly in a plane).
A circumstance that increases the likelihood of a loss.

11. Home Health Agency

12. Insolvent organization
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Any group or individual who provides health care services.
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.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.

13. Comprehensive Policy
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash - he/she might choose never to fly in a plane).
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.

14. Annual Statement
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 detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
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.
The process of reviewing - accepting or rejecting applications for insurance.

15. Intermediate Care
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

16. Option
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
Lessening the possibility or severity of a loss.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.

17. Fraud
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
A table showing the probability of death at specified ages.
The authority granted to an agent by means of the agent's written contract.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

18. Countersignature
An insurance company authorized and licensed to transact business in a particular state.
A combination of a flexible premium and adjustable life insurance.
The act of signing an insurance policy by a licensed resident agent.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

19. Controlled Business
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
To reach the maturity date or time at which the face amount equals cash values.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

20. Short-Rate Cancellation
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
Canceling the policy with a less than proportionate return of premium.
A medical benefits program jointly administered by the individual states and the federal government.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

21. Boycott
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.
To reach the maturity date or time at which the face amount equals cash values.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

22. Long-Term Care (LTC)
To reach the maturity date or time at which the face amount equals cash values.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 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.

23. Implied Authority
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A unit of measure used to determine rates charged for insurance coverage.
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.

24. Reciprocal Exchange
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.
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 unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Insurance agent or broker.

25. Rebating
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Any inducement offered in the sale of insurance products that is not specified in the policy.
The cause of a possible loss.
A fee or commission charged at the time of purchase of an annuity or a security.

26. Premium
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A periodic payment to the insurance company to keep the policy in force.
Requirements approved by state law that must appear in all insurance policies.

27. Orthodontics
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

28. Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
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.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
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.

29. Participating Policies (Par)
Insurance that pays dividends to policyholders.
Selling assets as a method of raising capital.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
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.

30. Basic Hospital Expense Insurance
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 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
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.

31. Policy Loan
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.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.

32. Flexible Premium
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
The person who has possession of the policy - usually the insured.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
An agent licensed in a state in which he or she is not a resident.

33. Domicile of Insurer

34. Expiration
A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy assigned as security for the loan to the policyowner.
The date specified in the policy as the date of termination.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

35. Waiver of Cost
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 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 amount of premium that must be collected from each member of a group composed of the same age - sex and risk in order to pay $1 -000 for each death that will occur in the group each year.
A 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.

36. Administrator
Insurer's location of incorporation and the legal ability to write business in a state.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
The amount of time an employee has to sign up for a contributory group health plan.

37. Health Savings Accounts (HSAs)
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
Plans designed to help individuals save for qualified health expenses.
A unit of measure used to determine rates charged for insurance coverage.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

38. Commingling
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 insurance policy that provides payment if the insured's death is the result of an accident.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
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. Lump Sum
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
Insurance furnished by nongovernmental insuring organizations.
A physical illness - disease - or pregnancy - but not a mental illness.
Insurance that provides protection for a specific period of time.

40. Straight Life
The payment made by insurers to agents or brokers for the sale and service of policies.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A provision that specifies to whom claims payments are to be made.

41. Personal Contract

42. Medicare
The amount payable upon the death of the person whose life is insured.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

43. Reciprocity

44. Parol Evidence Rule
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.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Insurance that does not pay dividends.

45. Twisting

46. Morbidity Rate
An agreement between two or more parties enforceable by law.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

47. Pro Rata Cancellation
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

48. Utmost Good Faith
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
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 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.

49. Primary Beneficiary
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 contract that provides income for a specified period of years - or for life.
A single policy that is designed to insure two or more lives.
The person who is named as first to receive benefits from a policy.

50. Ancillary
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
The payment made by insurers to agents or brokers for the sale and service of policies.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.