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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. Maturity Date
An employer-funded account linked to a high deductible medical insurance plan.
The date when the face amount of the life insurance becomes payable.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
Insurance organizations that have no capital stock - but are owned by the policyholders.

2. Beneficiary
The person who receives the proceeds from the policy when the insured dies.
Unplanned - unforeseen traumatic injury to the body.
Plans designed to help individuals save for qualified health expenses.
A termination of a policy by an insurer on the anniversary or renewal date.

3. Annual Statement
An insurance policy that provides payment if the insured's death is the result of an accident.
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 detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
A patient who is expected to die within an amount of time specified in the policy.

4. Disclosure
An entity certified by the insured's health plan that provides health care services under contract.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

5. Nonrenewal
An agent licensed in a state in which he or she is not a resident.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
A termination of a policy by an insurer on the anniversary or renewal date.
A type of insurance that protects the insured against loss due to accidental bodily injury.

6. Loan Value
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
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 accounting measurement of an insurer's future obligations to pay claims to policyowners.

7. Accident
An insurance company that conducts business in the state of incorporation.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
Insurance organizations that have no capital stock - but are owned by the policyholders.
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.

8. Flexible Spending Account (FSA)
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
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.
A single policy that is designed to insure two or more lives.

9. Home Health Agency

10. Health Insurance
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
Protection against loss due to sickness or bodily injury.
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.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

11. Buyer's Guide
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
The head of the state department of insurance.
The authority granted to an agent by means of the agent's written contract.
Time between the beginning of a disability and the start of disability insurance benefits.

12. Medical Savings Account
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.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
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
An employer-funded account linked to a high deductible medical insurance plan.

13. Explanation of Benefits (EOB)
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

14. Domestic Insurer
An insurance company that conducts business in the state of incorporation.
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 type of benefit plan that may discriminate - is not required to be filed with the IRS - and does not provide a current tax deduction for contributions.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

15. Risk - Pure
Insurance agent or broker.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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 material stipulation in the policy that if breached may void coverage.

16. Subrogation
The amount a physician or supplier actually bills for a particular service or supply.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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.

17. Health Savings Accounts (HSAs)
Plans designed to help individuals save for qualified health expenses.
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 withholding of known facts which - if material - can void a contract.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

18. Sickness
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A form of misrepresentation in which an agent persuades an insured/owner to cancel - lapse - or switch policies - even when it's to the insured's disadvantage.
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 physical illness - disease - or pregnancy - but not a mental illness.

19. Limited-Pay Whole Life

20. Face
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.
The first page of a policy.
The chief executive and administrative officer of a state insurance department.
Time between the beginning of a disability and the start of disability insurance benefits.

21. Personal Contract

22. Medicare
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 United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A policy premium that remains the same over the period of time premiums are paid.

23. Coordination of Benefits
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
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.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

24. Controlled Business
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

25. Admitted (Authorized) Insurer
The payment made by insurers to agents or brokers for the sale and service of policies.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
An insurance company authorized and licensed to transact business in a particular state.
Insurance that provides protection for a specific period of time.

26. Health Reimburse
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
An illustration furnished in addition to a basic illustration that may be presented in a different format than the basic illustration - but may only depict a scale of nonguaranteed elements that is permitted in a basic illustration.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.

27. 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
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The amount of the premium for which the policy protection has been given.
The cause of a possible loss.

28. Fraud
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

29. Primary Policy
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
An insurance company authorized and licensed to transact business in a particular state.
Uncertainty as to the outcome of an event when two or more possibilities exist.
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.

30. Rate Service Organization
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
Organizations that process claims and pay benefits in an insurance policy
The portion of premium for which policy protection has not yet been given.
An organization that is formed by - or on behalf of - a group of insurers to develop rates for those insurers - and to file the rates with the insurance department on behalf of its members. They may also act as a collection point for actuarial data.

31. Spendthrift Clause
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 clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
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 temporary contract that puts an insurance policy into force before the premium has been paid.

32. Principal Amount
The full face value of a policy.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
The portion of premium for which policy protection has not yet been given.

33. Agent
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
Special powers granted to an agent by his or her agency contract.
An agreement between two or more parties enforceable by law.
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.

34. Assignment (Life)
A demand of a person to stop committing an action that is in violation of a provision.
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.
The transfer of ownership rights of a life insurance policy from one person to another.
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.

35. Universal Life
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'
A combination of a flexible premium and adjustable life insurance.

36. Exposure
A provision that specifies to whom claims payments are to be made.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A unit of measure used to determine rates charged for insurance coverage.
Unplanned - unforeseen traumatic injury to the body.

37. Level Premium
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
Uncertainty as to the outcome of an event when two or more possibilities exist.
A policy premium that remains the same over the period of time premiums are 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

38. Transfer
A single policy that is designed to insure two or more lives.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
A provision that specifies to whom claims payments are to be made.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.

39. Deductible
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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 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

40. Risk - Standard
A material stipulation in the policy that if breached may void coverage.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.

41. Reciprocity

42. Hazard - Moral

43. Fixed Annuity
Any life insurance written on the life of a minor.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

44. Major Medical Insurance
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.
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 type of benefit plan that may discriminate - is not required to be filed with the IRS - and does not provide a current tax deduction for contributions.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.

45. Permanent Disability
The amount of time an employee has to sign up for a contributory group health plan.
Disability from which the insured does not recover.
Life insurance provided for members of a group.
A demand of a person to stop committing an action that is in violation of a provision.

46. Actual Charge
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The amount a physician or supplier actually bills for a particular service or supply.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.

47. Basic Illustration
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Time between the beginning of a disability and the start of disability insurance benefits.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.

48. Application
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
The difference between the Medicare approved amount for a service or supply and the actual charge.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

49. Provider
A policy premium that remains the same over the period of time premiums are paid.
The first page of a policy.
Any group or individual who provides health care services.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

50. Mortality Table
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The voluntary abandonment of a known or legal right or advantage.
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 table showing the probability of death at specified ages.