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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. Reduction
The withholding of known facts which - if material - can void a contract.
Insurance that pays dividends to policyholders.
Lessening the possibility or severity of a loss.
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

2. Back-End Load
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A policy premium that remains the same over the period of time premiums are paid.
The authority granted to an agent by means of the agent's written contract.
Termination of a policy because the premium has not been paid by the end of the grace period.

3. Activities of Daily Living (ADLs)
Special powers granted to an agent by his or her agency contract.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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 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.

4. Medigap
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A periodic payment to the insurance company to keep the policy in force.

5. Adverse Selection
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
Life insurance provided for members of a group.
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.

6. Attained Age
The age of the insured at a determined date.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
Health coverage provided to members of a group.
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.

7. Risk
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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.
Uncertainty as to the outcome of an event when two or more possibilities exist.

8. Medicare Supplement Insurance
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.
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 individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

9. Medicare
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).
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A combination of a flexible premium and adjustable life insurance.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

10. Limited Policies
Time between the beginning of a disability and the start of disability insurance benefits.
Health insurance policies that cover only specific accidents or diseases.
An information database that stores the health histories of this database for underwriting purposes.individuals who have applied for insurance in the past. Most insurance companies subscribe to
The voluntary abandonment of a known or legal right or advantage.

11. Accidental Bodily Injury
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
Any group or individual who provides health care services.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
Unplanned - unforeseen traumatic injury to the body.

12. Issue Age

13. Disability Income Insurance

14. Medicaid
The person who has possession of the policy - usually the insured.
A medical benefits program jointly administered by the individual states and the federal government.
Time between the beginning of a disability and the start of disability insurance benefits.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

15. Blanket Medical Insurance
Any group or individual who provides health care services.
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 period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.

16. Implied Authority
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A person who relies on another for support and maintenance.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.

17. Lloyd's Associations
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
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.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A material stipulation in the policy that if breached may void coverage.

18. Provider
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
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
Any group or individual who provides health care services.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

19. Consideration
An insurance sales office or company.
Care that is rendered to help an insured complete his/her activities of daily living.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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

20. Administrator
Lessening the possibility or severity of a loss.
An agent/broker who handles insurer's funds in a trust capacity.
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.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

21. Insurable Interest
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.
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 applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A temporary contract that puts an insurance policy into force before the premium has been paid.

22. Aleatory
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.
A medical benefits program jointly administered by the individual states and the federal government.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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.

23. Nonresident Agent
A single policy that is designed to insure two or more lives.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A provision that specifies to whom claims payments are to be made.
An agent licensed in a state in which he or she is not a resident.

24. Free Look
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
Insurance that pays dividends to policyholders.
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.
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

25. Endorsement
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
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.
The withholding of known facts which - if material - can void a contract.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

26. Accelerated Benefits
The portion of premium for which policy protection has not yet been given.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
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.

27. Joint Life
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
A single policy that is designed to insure two or more lives.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
The amount a physician or supplier actually bills for a particular service or supply.

28. Buy-Sell Agreement
The amount a physician or supplier actually bills for a particular service or supply.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
The act of signing an insurance policy by a licensed resident agent.
A circumstance that increases the likelihood of a loss.

29. Transfer
A basic principle of insurance under which the risk of financial loss is assigned to another party.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
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.
Life insurance provided for members of a group.

30. Sickness
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
A physical illness - disease - or pregnancy - but not a mental illness.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.

31. Alzheimer's Disease
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

32. Waiver of Premium
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
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.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.

33. Right to Return (aka Free Look)
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
Organizations that process claims and pay benefits in an insurance policy
An agreement between two or more parties enforceable by law.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.

34. Parol Evidence Rule
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.
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.
The date when the face amount of the life insurance becomes payable.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

35. Group Life
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
The difference between the Medicare approved amount for a service or supply and the actual charge.
Life insurance provided for members of a group.
The authority granted to an agent by means of the agent's written contract.

36. Health Savings Accounts (HSAs)
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Plans designed to help individuals save for qualified health expenses.
An insurance company that is incorporated in another state.

37. Hospice
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The authority granted to an agent by means of the agent's written contract.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
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.

38. Actuary
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
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 amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A statement usually obtained from the applicant's doctor.

39. Enrollment Period
A contract that provides income for a specified period of years - or for life.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
The amount of time an employee has to sign up for a contributory group health plan.
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

40. Recurrent Disability
A type of insurance that protects the insured against loss due to accidental bodily injury.
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.
A material stipulation in the policy that if breached may void coverage.
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.

41. Ancillary
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
Insurer's location of incorporation and the legal ability to write business in a state.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
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.

42. Co-Pay
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
A provision that specifies to whom claims payments are to be made.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

43. Insured
An information database that stores the health histories of this database for underwriting purposes.individuals who have applied for insurance in the past. Most insurance companies subscribe to
The person or organization that is protected by insurance; the party to be indemnified.
The age of the insured at a determined date.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

44. Hazard - Morale

45. Controlled Business
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
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.
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 federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential - accurate - relevant and properly used.

46. Intermediate Care
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
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 excessive amount of insurance that would result in overpayment to the insured in the event of a loss.

47. Employee RetirementIncome Security Act (ERISA)
The act that stipulates federal standards for private pension plans.
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.
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.
Plans designed to help individuals save for qualified health expenses.

48. Primary Beneficiary
The date specified in the policy as the date of termination.
The person who is named as first to receive benefits from a policy.
A facility which is licensed by the state to provide 24 hour nursing care.
Uncertainty as to the outcome of an event when two or more possibilities exist.

49. Risk - Speculative
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Protection against loss due to sickness or bodily injury.
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 group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.

50. Natural Premium
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.
Special powers granted to an agent by his or her agency 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.
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.