Test your basic knowledge |

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. Exclusions
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
The head of the state department of insurance.

2. Home Health Care
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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 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.
To reach the maturity date or time at which the face amount equals cash values.

3. Substandard Risk
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

4. Persistency
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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.

5. Periodontics
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
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 specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

6. Underwriting
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
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 applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

7. Blanket Medical Insurance
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
A temporary contract that puts an insurance policy into force before the premium has been paid.

8. CSO Table (The Commissioner's Standard Ordinary Table)
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
A mortality table used in life insurance that mathematically predicts the likelihood of death.

9. Parol
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
Legal term that distinguishes oral statements from written statements.
The difference between the Medicare approved amount for a service or supply and the actual charge.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.

10. Benefit Period
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
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.

11. Grace Period
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.
The amount of the premium for which the policy protection has been given.
Insurer's location of incorporation and the legal ability to write business in a state.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

12. Employee RetirementIncome Security Act (ERISA)
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
The act that stipulates federal standards for private pension plans.
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.

13. Convertible
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
The difference between the Medicare approved amount for a service or supply and the actual charge.
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).

14. Private Insurance
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
Insurance furnished by nongovernmental insuring organizations.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

15. Primary Beneficiary
The person who is named as first to receive benefits from a policy.
A type of insurance that protects the insured against loss due to accidental bodily injury.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
An insurance sales office or company.

16. Agent's Authority
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Special powers granted to an agent by his or her agency contract.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

17. Home Health Services
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The authority granted to an agent by means of the agent's written contract.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
The head of the state department of insurance.

18. Limited Policies
The withholding of known facts which - if material - can void a contract.
Health insurance policies that cover only specific accidents or diseases.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
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.

19. Retention

20. Illustration
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

21. Binder (Binding Receipt)
An insurance company authorized and licensed to transact business in a particular state.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

22. Flexible Spending Account (FSA)
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
Insurance that does not pay dividends.
To reach the maturity date or time at which the face amount equals cash values.
Special powers granted to an agent by his or her agency contract.

23. Proceeds

24. Skilled Nursing Care
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An agent/broker who handles insurer's funds in a trust capacity.

25. Rollover
Choices available to the insured/owner for distribution of insurance proceeds.
The head of the state department of insurance.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

26. Transfer
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
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.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

27. Front-End Load
An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed - before death.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A fee or commission charged at the time of purchase of an annuity or a security.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.

28. Pre-Existing Condition
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
Plans designed to help individuals save for qualified health expenses.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
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.

29. Dread (Specified) Disease Policy
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A provision that specifies to whom claims payments are to be made.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

30. Waiting Period
The payment made by insurers to agents or brokers for the sale and service of policies.
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
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
Time between the beginning of a disability and the start of disability insurance benefits.

31. Juvenile Life
An insurance company that is incorporated in another state.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
Any life insurance written on the life of a minor.
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.

32. Decreasing Term
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
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 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.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

33. Nonforfeiture Values
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.
Health coverage provided to members of a group.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
An insurance policy that provides payment if the insured's death is the result of an accident.

34. Nonrenewal
Any life insurance written on the life of a minor.
A termination of a policy by an insurer on the anniversary or renewal date.
A provision that specifies to whom claims payments are to be made.
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.

35. Nonresident Agent
A fee or commission charged at the time of purchase of an annuity or a security.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
The portion of premium for which policy protection has not yet been given.
An agent licensed in a state in which he or she is not a resident.

36. Secondary Beneficiary
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
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.

37. Premium
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A periodic payment to the insurance company to keep the policy in force.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A legal impediment to denying a fact or restoring a right that has been previously waived.

38. Warranty
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A material stipulation in the policy that if breached may void coverage.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.

39. Consideration
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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 physical condition that existed before the effective date of the policy - usually excluded from coverage.

40. Integrated LTC Rider

41. Cease and Desist Order
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A statement usually obtained from the applicant's doctor.
A demand of a person to stop committing an action that is in violation of a provision.
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.

42. Commissioner (Superintendent - Director)
The chief executive and administrative officer of a state insurance department.
A variation of whole life insurance that charges a level annual premium and provides a level - guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that
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.
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.

43. Major Medical Insurance
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.
An agreement between two or more parties enforceable by law.
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.

44. Director (Commissioner - Superintendent)
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 basic principle of insurance under which the risk of financial loss is assigned to another party.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
The head of the state department of insurance.

45. Standard Risk
The withholding of known facts which - if material - can void a contract.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A policy premium that remains the same over the period of time premiums are paid.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

46. Physical Exam and Autopsy
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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 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 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.

47. Legal Reserve

48. Nonqualified Pla
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 situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
A provision that specifies to whom claims payments are to be made.

49. Sickness
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
A physical illness - disease - or pregnancy - but not a mental illness.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
Plans designed to help individuals save for qualified health expenses.

50. Policyowner
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
The difference between the Medicare approved amount for a service or supply and the actual charge.