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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. Alzheimer's Disease
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
A termination of a policy by an insurer on the anniversary or renewal date.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.

2. Integrated LTC Rider

3. Endodontics
A patient who is expected to die within an amount of time specified in the policy.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A policy premium that remains the same over the period of time premiums are paid.

4. Buyer's Guide
Legal term that distinguishes oral statements from written statements.
Protection against loss due to sickness or bodily injury.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

5. Errors and Omissions Policy (E&O)
The act of signing an insurance policy by a licensed resident agent.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
A circumstance that increases the likelihood of a loss.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

6. Waiver of Cost
The transfer of ownership rights of a life insurance policy from one person to another.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
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 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.

7. Aleatory
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
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 individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

8. 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.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
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.

9. Dual Choice
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The withholding of known facts which - if material - can void a contract.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
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.

10. Out-of-Pocket Costs
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
The person who is named as first to receive benefits from a policy.

11. Rate Service Organization
A type of insurance that pays benefits for medical - surgical - and hospital costs.
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.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

12. Policyholder
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
The person who has possession of the policy - usually the insured.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.

13. Reserve
The difference between the Medicare approved amount for a service or supply and the actual charge.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
An insurance company that conducts business in the state of incorporation.
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.

14. Right to Return (aka Free Look)
A group insurance plan that requires the employees to pay part of the premium.
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
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).
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

15. Supplemental Illustration
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment 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 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.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

16. Respite Care
A type of insurance that protects the insured against loss due to accidental bodily injury.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
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 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.

17. Agency
Protection against loss due to sickness or bodily injury.
An insurance sales office or company.
The person who is named as first to receive benefits from a policy.
A contract that legally binds only one party to contractual obligations after the premium is paid.

18. Disability
A physical or mental impairment - either congenital or resulting from an injury or sickness.
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.
Time between the beginning of a disability and the start of disability insurance benefits.
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

19. Application
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

20. Short-Term Disability Insurance
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
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.
Life insurance provided for members of a group.
A termination of a policy by an insurer on the anniversary or renewal date.

21. Executory Contract
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
The act that stipulates federal standards for private pension plans.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.

22. Standard Provisions
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
An insurance company that conducts business in the state of incorporation.
Requirements approved by state law that must appear in all insurance policies.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.

23. Emergency
Insurance that does not pay dividends.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

24. Policy Loan
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 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 professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

25. Earned Premium
The amount of the premium for which the policy protection has been given.
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 statement usually obtained from the applicant's doctor.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

26. Risk - Standard
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
An insurance company authorized and licensed to transact business in a particular state.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

27. Unearned Premium
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.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The person who is named as first to receive benefits from a policy.
The portion of premium for which policy protection has not yet been given.

28. Notice of Claim

29. Accidental Bodily Injury
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.
Unplanned - unforeseen traumatic injury to the body.
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.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

30. Death Benefit
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
The amount payable upon the death of the person whose life is insured.
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 individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

31. Co-Pay
The difference between the Medicare approved amount for a service or supply and the actual charge.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

32. Comprehensive Major Medical
An entity certified by the insured's health plan that provides health care services under contract.
A fee or commission charged at the time of purchase of an annuity or a security.
A combination of a flexible premium and adjustable life insurance.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

33. Domicile of Insurer

34. Buy-Sell Agreement
Care that is rendered to help an insured complete his/her activities of daily living.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
The head of the state department of insurance.

35. Universal Life
A combination of a flexible premium and adjustable life insurance.
The amount of the premium for which the policy protection has been given.
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 retirement plan that meets the IRS guidelines for receiving favorable tax treatment.

36. Medicare Supplement Insurance
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
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 person who relies on another for support and maintenance.
Care that is rendered to help an insured complete his/her activities of daily living.

37. Binder (Binding Receipt)
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
A temporary contract that puts an insurance policy into force before the premium has been paid.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A termination of a policy by an insurer on the anniversary or renewal date.

38. Medical Information Bureau (MIB)
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An insurance company that is incorporated in another state.
A request for payment of the benefits provided by an insurance contract.
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

39. Approved Amount
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
Insurance that pays dividends to policyholders.
A group insurance plan that requires the employees to pay part of the premium.

40. Agent's Authority
The transfer of ownership rights of a life insurance policy from one person to another.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Special powers granted to an agent by his or her agency contract.

41. Payment of Claims
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
A provision that specifies to whom claims payments are to be made.
A policy premium that remains the same over the period of time premiums are paid.

42. Ancillary
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.
An agreement between two or more parties enforceable by law.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.

43. Law of Large Numbers
The amount of the premium for which the policy protection has been given.
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 claim form that a claimant must submit after a loss occurs.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

44. Partial Disability

45. Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986

46. Certificate
A group insurance plan that requires the employees to pay part of the premium.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An insurance company that conducts business in the state of incorporation.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

47. Back-End Load
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
A false statement or lie that can render the contract void.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

48. Face
The difference between the Medicare approved amount for a service or supply and the actual charge.
The first page of a policy.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

49. Foreign Insurer
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 portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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 company that is incorporated in another state.

50. Cash Value
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.