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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. Standard Provisions
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Requirements approved by state law that must appear in all insurance policies.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

2. Birthday Rule
A provision that specifies to whom claims payments are to be made.
An insurance company that conducts business in the state of incorporation.
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.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

3. Law of Large Numbers
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
An entity certified by the insured's health plan that provides health care services under contract.
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 detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

4. Defamation

5. Total Disability
Any inducement offered in the sale of insurance products that is not specified in the policy.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
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 rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor.

6. Prosthodontics
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
A temporary contract that puts an insurance policy into force before the premium has been paid.
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 special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.

7. Basic Illustration
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 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
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

8. Endow
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
To reach the maturity date or time at which the face amount equals cash values.
A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

9. Hazard - Moral

10. Actual Charge
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
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.
The date specified in the policy as the date of termination.
The amount a physician or supplier actually bills for a particular service or supply.

11. Out-of-Pocket Costs
Any group or individual who provides health care services.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
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.

12. Endodontics
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
Termination of a policy because the premium has not been paid by the end of the grace period.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

13. Single Premium Whole Life (SPWL)

14. Limited Policies
The amount a physician or supplier actually bills for a particular service or supply.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
Health insurance policies that cover only specific accidents or diseases.
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.

15. Insurable Interest
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.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
The head of the state department of insurance.
An insurance company authorized and licensed to transact business in a particular state.

16. Front-End Load
A table showing the probability of death at specified ages.
Special powers granted to an agent by his or her agency contract.
A fee or commission charged at the time of purchase of an annuity or a security.
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.

17. Mutual Companies
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
A single policy that is designed to insure two or more lives.
Insurance organizations that have no capital stock - but are owned by the policyholders.

18. Short-Rate Cancellation
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
Canceling the policy with a less than proportionate return of premium.

19. Major Medical Insurance
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
Lessening the possibility or severity of a loss.
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 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

20. Superintendent (Commissioner - Director)
The head of the state department of insurance.
The amount payable upon the death of the person whose life is insured.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.
An entity certified by the insured's health plan that provides health care services under contract.

21. Carriers
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).
Organizations that process claims and pay benefits in an insurance policy
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

22. Conditional Contract
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.

23. Broker
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The person who receives the proceeds from the policy when the insured dies.
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 effect of a person's reputation - character - living habits - etc. on his/her insurability.

24. Fair Credit Reporting Act
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
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.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.

25. Countersignature
The cause of a possible loss.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
The act of signing an insurance policy by a licensed resident agent.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.

26. Probationary Period
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A temporary contract that puts an insurance policy into force before the premium has been paid.
The effect a person's indifference concerning loss has on the risk to be insured.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

27. Mode of Payment
A type of health insurance that usually carries a large deductible and pays covered expenses up to a high limit whether the insured is in or out of the hospital.
A 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.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
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.

28. Health Savings Accounts (HSAs)
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
Plans designed to help individuals save for qualified health expenses.

29. Unearned Premium
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
Protection against loss due to sickness or bodily injury.
The portion of premium for which policy protection has not yet been given.

30. Renewability Clause

31. Contract
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
An agreement between two or more parties enforceable by law.
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.

32. Adjuster
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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 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.
A provision that specifies to whom claims payments are to be made.

33. 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.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.

34. CSO Table (The Commissioner's Standard Ordinary Table)
To reach the maturity date or time at which the face amount equals cash values.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
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 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).

35. Approved Amount
The amount payable upon the death of the person whose life is insured.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
An insurance company that is incorporated in another state.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

36. Adult Day Care
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A type of insurance that pays benefits for medical - surgical - and hospital costs.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
A facility which is licensed by the state to provide 24 hour nursing care.

37. Free Look
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.
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 special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

38. Coinsurance Clause
Insurance that provides protection for a specific period of time.
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.
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 provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.

39. Insured
The act that stipulates federal standards for private pension plans.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
The person or organization that is protected by insurance; the party to be indemnified.
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.

40. Hospice
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

41. Earned Premium
The amount of the premium for which the policy protection has been given.
The date when the face amount of the life insurance becomes payable.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
The chief executive and administrative officer of a state insurance department.

42. Coinsurance
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
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.
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 life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.

43. Insurer
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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 applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.

44. Transfer
Insurer's location of incorporation and the legal ability to write business in a state.
The transfer of ownership rights of a life insurance policy from one person to another.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
Organizations that process claims and pay benefits in an insurance policy

45. Certificate of Insurance
A termination of a policy by an insurer on the anniversary or renewal date.
A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it - agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.
A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

46. Errors and Omissions Policy (E&O)
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 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.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
The full face value of a policy.

47. Loss of Income Insurance
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
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.
A periodic payment to the insurance company to keep the policy in force.
Canceling the policy with a less than proportionate return of premium.

48. Elimination Period
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.
Care that is rendered to help an insured complete his/her activities of daily living.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.

49. Coordination of 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.
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 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 agreement between two or more parties enforceable by law.

50. Back-End Load
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.