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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. Medicaid
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A medical benefits program jointly administered by the individual states and the federal government.
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.
A claim form that a claimant must submit after a loss occurs.

2. Acquired Immunodeficiency Syndrome (AIDS)
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 table showing the probability of death at specified ages.
A combination of a flexible premium and adjustable life insurance.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

3. 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.
A contract that legally binds only one party to contractual obligations after the premium is paid.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.

4. Exclusions
A provision that specifies to whom claims payments are to be made.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A circumstance that increases the likelihood of a loss.
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.

5. Sickness
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A physical illness - disease - or pregnancy - but not a mental illness.
Uncertainty as to the outcome of an event when two or more possibilities exist.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

6. Medical Savings Account
The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.
A contract offered on a "take-it-or-leave-it" basis by an insurer - in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.
An employer-funded account linked to a high deductible medical insurance plan.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

7. Integrated LTC Rider

8. Home Health Agency

9. Reduction
A medical benefits program jointly administered by the individual states and the federal government.
Lessening the possibility or severity of a loss.
A policy that may be exchanged for another type of policy by contractual provision - at the option of the policyowner - and without evidence of insurability (i.e. term life changed to a form of permanent life).
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.

10. Contract
The full face value of a policy.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
An insurance company that is incorporated in another state.
An agreement between two or more parties enforceable by law.

11. Extension of Benefits

12. Contributory
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 provision that specifies to whom claims payments are to be made.
A combination of a flexible premium and adjustable life insurance.
A group insurance plan that requires the employees to pay part of the premium.

13. CSO Table (The Commissioner's Standard Ordinary Table)
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
Insurance that pays over and above or in addition to basic policy limits.

14. Intermediate Care
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.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A unit of measure used to determine rates charged for insurance coverage.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.

15. Adhesion

16. Medigap
Insurance that provides protection for a specific period of time.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
An employer-funded account linked to a high deductible medical insurance plan.
The ratio of the incidence of sickness to the number of well persons in a given group of people over a given period of time.

17. Stock Companies
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A table showing the probability of death at specified ages.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

18. Medical Information Bureau (MIB)
A demand of a person to stop committing an action that is in violation of a provision.
The transfer of ownership rights of a life insurance policy from one person to another.
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
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

19. Nonrenewal
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
The full face value of a policy.
A termination of a policy by an insurer on the anniversary or renewal date.
A type of insurance that protects the insured against loss due to accidental bodily injury.

20. Disability
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
Legal term that distinguishes oral statements from written statements.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

21. Basic Hospital Expense Insurance
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
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.
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).
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

22. Standard Provisions
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.
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.
Requirements approved by state law that must appear in all insurance policies.
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

23. Premium
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 periodic payment to the insurance company to keep the policy in force.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

24. Buyer's Guide
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
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 policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

25. Rider
The person who has possession of the policy - usually the insured.
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 federal law which extends the minimum COBRA continuation of group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.

26. Actual Cash Value (ACV)

27. Co-Pay
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
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 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 to which a policyowner is entitled if the policy is surrendered before maturity.

28. Limited-Pay Whole Life

29. Agency
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
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 type of insurance that pays benefits for medical - surgical - and hospital costs.
An insurance sales office or company.

30. Rebating
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
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.
The head of the state department of insurance.
Any inducement offered in the sale of insurance products that is not specified in the policy.

31. Hospital Confinement Rider
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.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
The act of signing an insurance policy by a licensed resident agent.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

32. Permanent Disability
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.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Disability from which the insured does not recover.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

33. Pre-Existing Condition
A temporary contract that puts an insurance policy into force before the premium has been paid.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
Insurance that provides protection for a specific period of time.

34. Blanket Medical Insurance
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
A form of misrepresentation in which an agent persuades an insured/owner to cancel - lapse - or switch policies - even when it's to the insured's disadvantage.
A 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.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

35. Nonforfeiture Values
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
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 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.
The person who is named as first to receive benefits from a policy.

36. Policyowner
Special powers granted to an agent by his or her agency contract.
Insurance that pays over and above or in addition to basic policy limits.
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.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

37. Reciprocity

38. Noncancelable
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.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time.
A group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.

39. Director (Commissioner - Superintendent)
The head of the state department of insurance.
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 federal law which extends the minimum COBRA continuation of group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

40. Controlled Business
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
Special powers granted to an agent by his or her agency contract.

41. Morbidity Table
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
A member organization which is unable to pay its contractual obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction.
A table showing the incidence of sickness at specified ages.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.

42. Peril
The effect a person's indifference concerning loss has on the risk to be insured.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
The cause of a possible loss.
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.

43. Extended Care Facility
A facility which is licensed by the state to provide 24 hour nursing care.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
Care that is rendered to help an insured complete his/her activities of daily living.
Lessening the possibility or severity of a loss.

44. Accident
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.
An agent/broker who handles insurer's funds in a trust capacity.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.

45. Personal Contract

46. Policyholder
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A circumstance that increases the likelihood of a loss.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
The person who has possession of the policy - usually the insured.

47. Life Expectancy
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
The head of the state department of insurance.

48. Waiver
Time between the beginning of a disability and the start of disability insurance benefits.
The voluntary abandonment of a known or legal right or advantage.
The amount of the premium for which the policy protection has been given.
The withholding of known facts which - if material - can void a contract.

49. Nonauthorized (Nonadmitted)
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 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.
Insurance that pays dividends to policyholders.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

50. 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.
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 table showing the probability of death at specified ages.
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.