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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. Paid-Up Insurance
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
The payment made by insurers to agents or brokers for the sale and service of policies.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.

2. Group Health Insurance
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
Health coverage provided to members of a group.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
Termination of a policy because the premium has not been paid by the end of the grace period.

3. Fiduciary

4. Producer
Insurance agent or broker.
The cause of a possible loss.
To reach the maturity date or time at which the face amount equals cash values.
Termination of a policy because the premium has not been paid by the end of the grace period.

5. Consideration
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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 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

6. Emergency
A unit of measure used to determine rates charged for insurance coverage.
The process of reviewing - accepting or rejecting applications for insurance.
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 injury or disease which occurs suddenly and requires treatment within 24 hours.

7. Disability Income Insurance

8. Presumptive Disability
A policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
A contract that legally binds only one party to contractual obligations after the premium is paid.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

9. Stock Companies
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
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.
A policy premium that remains the same over the period of time premiums are paid.
The individual's age when a policy is issued.

10. Straight Life
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
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 basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
The payment made by insurers to agents or brokers for the sale and service of policies.

11. Long-Term Care (LTC)
The person who receives the proceeds from the policy when the insured dies.
The person or organization that is protected by insurance; the party to be indemnified.
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 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).

12. Basic Medical Expense Insurance
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
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

13. Retention

14. Fair Credit Reporting Act
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.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
An insurance company that is incorporated in another state.
The withholding of known facts which - if material - can void a contract.

15. Actual Cash Value (ACV)

16. Cafeteria Plan
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

17. Coverage
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.

18. Attained Age
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
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).
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.
The age of the insured at a determined date.

19. Universal Life
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A combination of a flexible premium and adjustable life insurance.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

20. Insurer
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.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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.
A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.

21. Parol Evidence Rule
The act of signing an insurance policy by a licensed resident agent.
The portion of premium for which policy protection has not yet been given.
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 area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.

22. Rescission
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
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.
The full face value of a policy.
Insurer's location of incorporation and the legal ability to write business in a state.

23. Limiting Charge
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
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.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
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.

24. Qualified Plan
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Insurance organizations that have no capital stock - but are owned by the policyholders.
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 infectious and incurable disease caused by the human immunodeficiency virus (HIV).

25. Exclusions
A physical or mental impairment - either congenital or resulting from an injury or sickness.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
Life insurance provided for members of a group.
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.

26. Proof of Loss
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A claim form that a claimant must submit after a loss occurs.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
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.

27. Pro Rata Cancellation
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
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.
A medical benefits program jointly administered by the individual states and the federal government.

28. Terminally Ill
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.
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 type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
A patient who is expected to die within an amount of time specified in the policy.

29. Assignment (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.
Selling assets as a method of raising capital.
The transfer of ownership rights of a life insurance policy from one person to another.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.

30. Attending Physician's Statement (APS)

31. Underwriting
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 table showing the probability of death at specified ages.
A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.
The process of reviewing - accepting or rejecting applications for insurance.

32. Loss
A policy premium that remains the same over the period of time premiums are paid.
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 reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
An insurance company that conducts business in the state of incorporation.

33. Risk - Standard
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.
The amount a physician or supplier actually bills for a particular service or supply.

34. Explanation of Medicare Benefits
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
An employer-funded account linked to a high deductible medical insurance plan.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.

35. Free Look
Withdrawing the money from a qualified plan and placing it into another qualified plan.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
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.
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

36. Cash Value
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 percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.

37. Subrogation
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 medical benefits program jointly administered by the individual states and the federal government.
Canceling the policy with a less than proportionate return of premium.
A policy premium that remains the same over the period of time premiums are paid.

38. Restorative Care
Any group or individual who provides health care services.
Insurance that provides protection for a specific period of time.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
The act of signing an insurance policy by a licensed resident agent.

39. Group Life
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Uncertainty as to the outcome of an event when two or more possibilities exist.
Life insurance provided for members of a group.
Insurance that pays over and above or in addition to basic policy limits.

40. Binder (Binding Receipt)
The person who has possession of the policy - usually the insured.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
A type of insurance that protects the insured against loss due to accidental bodily injury.

41. Assignment (Health)
Canceling the policy with a less than proportionate return of premium.
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 claim to a provider or medical supplier to receive payments directly from Medicare.
Protection against loss due to sickness or bodily injury.

42. Multiple-Employer Trust (MET)
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
A combination of a flexible premium and adjustable life insurance.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.

43. Reinsurance
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.
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.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.

44. Option
Legal term that distinguishes oral statements from written statements.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

45. Alzheimer's Disease
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
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.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.

46. Orthodontics
The process of reviewing - accepting or rejecting applications for insurance.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A request for payment of the benefits provided by an insurance contract.

47. Dread (Specified) Disease Policy
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
The 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 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.

48. Hospital Confinement Rider
A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.
The amount of time an employee has to sign up for a contributory group health plan.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An insurance company that conducts business in the state of incorporation.

49. Misrepresentation
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 time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A false statement or lie that can render the contract void.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

50. Countersignature
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
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 act of signing an insurance policy by a licensed resident agent.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.