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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. Residual Disability
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.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A material stipulation in the policy that if breached may void coverage.
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).

2. Conditional Contract
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death - whenever that may be.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

3. Certificate of Insurance
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 level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

4. Nonqualified Pla
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

5. Endorsement
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).

6. Provider
An insurance company that is incorporated outside the United States.
Any group or individual who provides health care services.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
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.

7. Medical Savings Account
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
Insurance that provides protection for a specific period of time.
An employer-funded account linked to a high deductible medical insurance plan.
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.

8. Maturity Date
Plans designed to help individuals save for qualified health expenses.
The date when the face amount of the life insurance becomes payable.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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'

9. Warranty
A material stipulation in the policy that if breached may void coverage.
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 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
The person who has possession of the policy - usually the insured.

10. Certificate of Authority
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 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 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.
Health coverage provided to members of a group.

11. Waiver of Cost
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 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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
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.

12. Adult Day Care
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
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.

13. Intentional Injury
The head of the state department of insurance.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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.

14. Physical Exam and Autopsy
Insurance that pays dividends to policyholders.
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.
Choices available to the insured/owner for distribution of insurance proceeds.
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.

15. Coercion
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
A person who relies on another for support and maintenance.
A fee or commission charged at the time of purchase of an annuity or a security.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

16. Long-Term Care (LTC)
A material stipulation in the policy that if breached may void coverage.
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.
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 uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

17. Limiting Charge
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).
An agreement between two or more parties enforceable by law.
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 time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

18. Prosthodontics
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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
Any life insurance written on the life of a minor.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

19. Application
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
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 combination of a flexible premium and adjustable life insurance.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

20. Short-Rate Cancellation
The date specified in the policy as the date of termination.
Canceling the policy with a less than proportionate return of premium.
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.
Choices available to the insured/owner for distribution of insurance proceeds.

21. Flexible Premium
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
The person or organization that is protected by insurance; the party to be indemnified.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.

22. Consideration Clause
The effect a person's indifference concerning loss has on the risk to be insured.
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 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 which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

23. Excess Insurance
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
Insurance that pays over and above or in addition to basic policy limits.
Canceling the policy with a less than proportionate return of premium.
A mortality table used in life insurance that mathematically predicts the likelihood of death.

24. Broker
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
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 individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

25. Waiting Period
Insurance that pays dividends to policyholders.
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.
Time between the beginning of a disability and the start of disability insurance benefits.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.

26. Commissioner (Superintendent - Director)
A unit of measure used to determine rates charged for insurance coverage.
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 chief executive and administrative officer of a state insurance department.
A physical illness - disease - or pregnancy - but not a mental illness.

27. Credit Life Insurance
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
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 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.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.

28. Transfer
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
A material stipulation in the policy that if breached may void coverage.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

29. Nonauthorized (Nonadmitted)
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
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.
An agent/broker who handles insurer's funds in a trust capacity.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.

30. Effective Date
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 appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
The payment made by insurers to agents or brokers for the sale and service of policies.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

31. Birthday Rule
The transfer of ownership rights of a life insurance policy from one person to another.
A group insurance plan that requires the employees to pay part of the premium.
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 federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential - accurate - relevant and properly used.

32. Dual Choice
The full face value of a policy.
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 whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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.

33. Insurability

34. Superintendent (Commissioner - Director)
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
The amount of time an employee has to sign up for a contributory group health plan.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The head of the state department of insurance.

35. Juvenile Life
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.
Any life insurance written on the life of a minor.

36. Annual Statement
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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.
Disability from which the insured does not recover.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

37. Rider
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.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
Life insurance provided for members of a group.
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.

38. Standard Provisions
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Requirements approved by state law that must appear in all insurance policies.
A termination of a policy by an insurer on the anniversary or renewal date.
A contract that legally binds only one party to contractual obligations after the premium is paid.

39. Law of Large Numbers
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.
An insurance company authorized and licensed to transact business in a particular state.
The amount payable upon the death of the person whose life is insured.
A single policy that is designed to insure two or more lives.

40. Applicant
A person making application for - or offering him/herself or another to be insured under an insurance contract.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
Life insurance provided for members of a group.
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

41. Defamation

42. Fraud
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
An insurance company that conducts business in the state of incorporation.
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.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

43. Grace Period
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
A table showing the probability of death at specified ages.
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 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.

44. Liquidation
Selling assets as a method of raising capital.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
Special powers granted to an agent by his or her agency contract.
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.

45. Illustration
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
The act that stipulates federal standards for private pension plans.
The full face value of a policy.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

46. Policyholder
The person who has possession of the policy - usually the insured.
A false statement or lie that can render the contract void.
An agent/broker who handles insurer's funds in a trust capacity.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.

47. Adjustable Life
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
The full face value of a policy.

48. Parol Evidence Rule
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
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.

49. Secondary Beneficiary
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.
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 injury or disease which occurs suddenly and requires treatment within 24 hours.
A patient who is expected to die within an amount of time specified in the policy.

50. Coordination of Benefits
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance 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.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.