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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. Unilateral Contract
The transfer of ownership rights of a life insurance policy from one person to another.
A contract that legally binds only one party to contractual obligations after the premium is paid.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.

2. Major Medical Insurance
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.
An insurance company that is incorporated outside the United States.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

3. Parol
The full face value of a policy.
A false statement or lie that can render the contract void.
Legal term that distinguishes oral statements from written statements.
The cause of a possible loss.

4. Basic Medical Expense Insurance
A physical illness - disease - or pregnancy - but not a mental illness.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.

5. 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.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

6. Actual Charge
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
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 amount a physician or supplier actually bills for a particular service or supply.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

7. Waiver
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.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Life insurance provided for members of a group.
The voluntary abandonment of a known or legal right or advantage.

8. Medical Savings Account
Termination of a policy because the premium has not been paid by the end of the grace period.
The date when the face amount of the life insurance becomes payable.
An employer-funded account linked to a high deductible medical insurance plan.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

9. Medicaid
A medical benefits program jointly administered by the individual states and the federal government.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed - before death.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.

10. Nonmedical

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11. Supplemental Illustration
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 agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy assigned as security for the loan to the policyowner.
Plans designed to help individuals save for qualified health expenses.

12. 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.
A circumstance that increases the likelihood of a loss.
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 contract that pays a stated amount in the event of a loss (disability insurance/life insurance).

13. Agent
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
The transfer of ownership rights of a life insurance policy from one person to another.
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.

14. Noncancelable
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
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 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 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.

15. Long-Term Care (LTC)
An agent licensed in a state in which he or she is not a resident.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
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.
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

16. Probationary Period
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
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 chief executive and administrative officer of a state insurance department.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

17. Disclosure
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 plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
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. Risk - Speculative
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
The chief executive and administrative officer of a state insurance department.

19. 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 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
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

20. Co-Pay
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
Health coverage provided to members of a group.
An agent/broker who handles insurer's funds in a trust capacity.

21. Carriers
Organizations that process claims and pay benefits in an insurance policy
A selection of health care benefits from which an employee may choose the ones that he/she needs.
Lessening the possibility or severity of a loss.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

22. Countersignature
Lessening the possibility or severity of a loss.
A facility which is licensed by the state to provide 24 hour nursing care.
The act of signing an insurance policy by a licensed resident agent.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.

23. Hazard
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The amount a physician or supplier actually bills for a particular service or supply.
The process of reviewing - accepting or rejecting applications for insurance.
A circumstance that increases the likelihood of a loss.

24. Juvenile Life
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 one person refuses to do business with another until he or she agrees to certain conditions.
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
Any life insurance written on the life of a minor.

25. Agency
Any group or individual who provides health care services.
A physical illness - disease - or pregnancy - but not a mental illness.
An insurance sales office or company.
The age of the insured at a determined date.

26. Renewability Clause

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27. 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.
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 person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.

28. Adjuster
An agreement between two or more parties enforceable by law.
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
The head of the state department of insurance.

29. Fixed Annuity
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.

30. Orthodontics
Uncertainty as to the outcome of an event when two or more possibilities exist.
Health insurance policies that cover only specific accidents or diseases.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

31. Attending Physician's Statement (APS)

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32. Multiple-Employer Trust (MET)
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 group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.

33. Accidental Death Benefits
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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 policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.
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

34. Hospice
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.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A claim form that a claimant must submit after a loss occurs.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

35. Group Disability Insurance
A person who relies on another for support and maintenance.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
Any life insurance written on the life of a minor.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.

36. Commingling
Termination of a policy because the premium has not been paid by the end of the grace period.
The transfer of ownership rights of a life insurance policy from one person to another.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.

37. Nonauthorized (Nonadmitted)
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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 mortality table used in life insurance that mathematically predicts the likelihood of death.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

38. Single Premium Whole Life (SPWL)

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39. Lump Sum
The act of signing an insurance policy by a licensed resident agent.
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.
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.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

40. Convertible
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).
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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.

41. Periodontics
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
An entity certified by the insured's health plan that provides health care services under contract.

42. Comprehensive Major Medical
A mortality table used in life insurance that mathematically predicts the likelihood of death.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.

43. Primary Beneficiary
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
The person who is named as first to receive benefits from a policy.
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.
Insurance that does not pay dividends.

44. Excess Charge
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
The difference between the Medicare approved amount for a service or supply and the actual charge.
A fee or commission charged at the time of purchase of an annuity or a security.
An insurance sales office or company.

45. Alien Insurer
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
An insurance company that is incorporated outside the United States.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.

46. Admitted (Authorized) Insurer
An insurance company authorized and licensed to transact business in a particular state.
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.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

47. Concealment
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A material stipulation in the policy that if breached may void coverage.
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 withholding of known facts which - if material - can void a contract.

48. Face
The first page of a policy.
The amount payable upon the death of the person whose life is insured.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.

49. Boycott
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
Any group or individual who provides health care services.

50. Intermediate Care
A physical or mental impairment - either congenital or resulting from an injury or sickness.
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 level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.