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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. Applicant
A single policy that is designed to insure two or more lives.
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 person making application for - or offering him/herself or another to be insured under an insurance contract.
An insurance company that is incorporated outside the United States.

2. Rider
The voluntary abandonment of a known or legal right or advantage.
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.
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 rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

3. Principal Amount
A person who relies on another for support and maintenance.
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
Any group or individual who provides health care services.
The full face value of a policy.

4. Hospital Confinement Rider
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
A fee or commission charged at the time of purchase of an annuity or a security.
A table showing the incidence of sickness at specified ages.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

5. Standard Provisions
Requirements approved by state law that must appear in all insurance policies.
Any inducement offered in the sale of insurance products that is not specified in the policy.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.

6. Limited-Pay Whole Life

7. Notice of Claim

8. Surrender
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.
A single policy that is designed to insure two or more lives.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
The cause of a possible loss.

9. Accidental Death and Dismemberment (AD&D)

10. Birthday Rule
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'
The date when the face amount of the life insurance becomes payable.
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

11. Domicile of Insurer

12. Medicare
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 mortality table used in life insurance that mathematically predicts the likelihood of death.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

13. Exposure
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
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
A unit of measure used to determine rates charged for insurance coverage.
The person who has possession of the policy - usually the insured.

14. Executory Contract
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 federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential - accurate - relevant and properly used.
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 contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.

15. Administrator
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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 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.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

16. Ancillary
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.

17. Buyer's Guide
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

18. Assignment (Health)
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 group insurance plan that requires the employees to pay part of the premium.
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 claim to a provider or medical supplier to receive payments directly from Medicare.

19. Hazard - Physical
To reach the maturity date or time at which the face amount equals cash values.
A type of hazard that arises from the physical characteristics of an individual - such as a physical disability due to either current circumstance or a condition present at birth.
A type of 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 amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

20. Probationary Period
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
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 legal impediment to denying a fact or restoring a right that has been previously waived.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

21. Unilateral Contract
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
A contract that legally binds only one party to contractual obligations after the premium is paid.
A periodic payment to the insurance company to keep the policy in force.
Insurance that does not pay dividends.

22. Group Disability Insurance
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
The difference between the Medicare approved amount for a service or supply and the actual charge.

23. Adverse Selection
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
The third in line to receive the benefits of a life insurance policy.

24. Renewable Term
Selling assets as a method of raising capital.
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
Any inducement offered in the sale of insurance products that is not specified in the policy.

25. Peril
The cause of a possible loss.
Organizations that process claims and pay benefits in an insurance policy
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

26. Estoppel
The process of reviewing - accepting or rejecting applications for insurance.
A legal impediment to denying a fact or restoring a right that has been previously waived.
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 choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

27. Adult Day Care
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 provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
A federal requirement that employers who have 25 or more employees - who are within the service area of a qualified HMO - who pay minimum wage - and offer a health plan - must offer HMO coverage as well as an indemnity plan.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.

28. Non-participating Policies (Non-par)
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
Insurance that does not pay dividends.
A legal impediment to denying a fact or restoring a right that has been previously waived.

29. Extension of Benefits

30. Fraud
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.
The amount of the premium for which the policy protection has been given.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.

31. Nonadmitted (Nonauthorized)
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
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.

32. Broker
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.
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.
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.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

33. Provider
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
Unplanned - unforeseen traumatic injury to the body.
Any group or individual who provides health care services.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

34. Alien Insurer
Requirements approved by state law that must appear in all insurance policies.
An insurance company that is incorporated outside the United States.
A method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss who share the losses that occur within that group.
Insurance that provides protection for a specific period of time.

35. Accelerated Benefits
The portion of premium for which policy protection has not yet been given.
The amount of the premium for which the policy protection has been given.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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.

36. Over Insurance
The act of signing an insurance policy by a licensed resident agent.
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.
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 excessive amount of insurance that would result in overpayment to the insured in the event of a loss.

37. Rescission
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A legal impediment to denying a fact or restoring a right that has been previously waived.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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.

38. Consideration Clause
Disability from which the insured does not recover.
A part of the insurance contract that states that both parties must give something of value for the transfer of risk - and specifies the conditions of the exchange.
Insurance that does not pay dividends.
The full face value of a policy.

39. Oral Surgery
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Any inducement offered in the sale of insurance products that is not specified in the policy.
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.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.

40. Nonrenewal
Canceling the policy with a less than proportionate return of premium.
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 termination of a policy by an insurer on the anniversary or renewal date.
Plans designed to help individuals save for qualified health expenses.

41. Natural Premium
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 combination of a flexible premium and adjustable life insurance.
Insurance that pays dividends to policyholders.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

42. Level Premium
Choices available to the insured/owner for distribution of insurance proceeds.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A policy premium that remains the same over the period of time premiums are paid.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.

43. Accident
A claim form that a claimant must submit after a loss occurs.
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.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
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.

44. Agency
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
The portion of premium for which policy protection has not yet been given.
The full face value of a policy.
An insurance sales office or company.

45. CSO Table (The Commissioner's Standard Ordinary Table)
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.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
Requirements approved by state law that must appear in all insurance policies.

46. Investigative Consumer Report

47. Paid-Up Insurance
The process of reviewing - accepting or rejecting applications for insurance.
A liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.

48. Insuring Clause
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 general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
The act of signing an insurance policy by a licensed resident agent.
The act that stipulates federal standards for private pension plans.

49. Spendthrift Clause
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
A facility which is licensed by the state to provide 24 hour nursing care.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

50. Secondary Beneficiary
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
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
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 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