Test your basic knowledge |

Life And Health Insurance Exam

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Premium
A person who relies on another for support and maintenance.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
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.
A periodic payment to the insurance company to keep the policy in force.

2. Oral Surgery
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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 effect a person's indifference concerning loss has on the risk to be insured.
A material stipulation in the policy that if breached may void coverage.

3. Stock Companies
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
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 act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

4. Grace Period
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.
An insurance company authorized and licensed to transact business in a particular state.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.

5. Mutual Companies
The authority granted to an agent by means of the agent's written contract.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
Insurance organizations that have no capital stock - but are owned by the policyholders.

6. Coverage
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
Termination of a policy because the premium has not been paid by the end of the grace period.
An employer-funded account linked to a high deductible medical insurance plan.

7. Risk - Speculative
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 fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

8. Pure Protection
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 facility which is licensed by the state to provide 24 hour nursing care.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

9. Adhesion

10. Apparent Authority
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 type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
A policy premium that remains the same over the period of time premiums are paid.

11. Service Plans
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.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
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 organizations that have no capital stock - but are owned by the policyholders.

12. Terminally Ill
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 patient who is expected to die within an amount of time specified in the policy.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

13. Probationary Period
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A material stipulation in the policy that if breached may void coverage.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
A claim form that a claimant must submit after a loss occurs.

14. Nonresident Agent
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
An agent licensed in a state in which he or she is not a resident.
Unplanned - unforeseen traumatic injury to the body.

15. Beneficiary
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
Any inducement offered in the sale of insurance products that is not specified in the policy.
The person who receives the proceeds from the policy when the insured dies.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

16. Emergency
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
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 injury or disease which occurs suddenly and requires treatment within 24 hours.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.

17. Commingling
A periodic payment to the insurance company to keep the policy in force.
Termination of a policy because the premium has not been paid by the end of the grace period.
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.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.

18. Claim
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A request for payment of the benefits provided by an insurance contract.
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.
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).

19. Rescission
A periodic payment to the insurance company to keep the policy in force.
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.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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.

20. Fair Credit Reporting Act
Disability from which the insured does not recover.
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 type of insurance that protects the insured against loss due to accidental bodily injury.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

21. Countersignature
An agent/broker who handles insurer's funds in a trust capacity.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
The act of signing an insurance policy by a licensed resident agent.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

22. Acquired Immunodeficiency Syndrome (AIDS)
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
The person who receives the proceeds from the policy when the insured dies.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

23. Earned Premium
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 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
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
The amount of the premium for which the policy protection has been given.

24. Illustration
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
Insurance that provides protection for a specific period of time.
Organizations that process claims and pay benefits in an insurance policy

25. Superintendent (Commissioner - Director)
The head of the state department of insurance.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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'

26. Hazard
A circumstance that increases the likelihood of a loss.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
The portion of premium for which policy protection has not yet been given.

27. Contract
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.
The act of signing an insurance policy by a licensed resident agent.
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.
An agreement between two or more parties enforceable by law.

28. Disclosure
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).
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

29. 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 group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Insurance agent or broker.
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.

30. Short-Term Disability Insurance
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 group or individual policy that covers disabilities of 13 to 26 weeks - and in some cases for a period of up to two years.
A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.
Legal term that distinguishes oral statements from written statements.

31. Consumer Reports

32. Universal Life
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
A combination of a flexible premium and adjustable life insurance.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

33. Disability Income Insurance

34. Application
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

35. Health Insurance
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.
Protection against loss due to sickness or bodily injury.
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.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

36. Subrogation
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
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.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
Written and /or oral statements regarding a consumer's credit - character - reputation - or habits collected by a reporting agency from employment records - credit reports - and other public sources.

37. Spendthrift Clause
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.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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 clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

38. Domestic Insurer
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 policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
An insurance company that conducts business in the state of incorporation.
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.

39. Ancillary
A type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
The amount payable upon the death of the person whose life is insured.

40. Convertible
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Plans designed to help individuals save for qualified health expenses.
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).

41. Attained Age
A combination of a flexible premium and adjustable life insurance.
The age of the insured at a determined date.
A legal impediment to denying a fact or restoring a right that has been previously waived.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

42. Flexible Spending Account (FSA)
Plans designed to help individuals save for qualified health expenses.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

43. Annual Statement
Special powers granted to an agent by his or her agency contract.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
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.

44. Buyer's Guide
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
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 unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

45. Carriers
Organizations that process claims and pay benefits in an insurance policy
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
An insurance sales office or company.
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.

46. Over Insurance
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 excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.

47. Medical Savings Account
An employer-funded account linked to a high deductible medical insurance plan.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
The amount payable upon the death of the person whose life is insured.
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.

48. Defamation

49. Warranty
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
A material stipulation in the policy that if breached may void coverage.
The full face value of a policy.
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.

50. Contributory
A group insurance plan that requires the employees to pay part of the premium.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
Lessening the possibility or severity of a loss.