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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. Twisting

2. Multiple Employer Welfare Association (MEWA)
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.
An insurance policy that provides payment if the insured's death is the result of an accident.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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.

3. Periodontics
Any inducement offered in the sale of insurance products that is not specified in the policy.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

4. Preferred Provider Organization (PPO)

5. Whole Life Insurance

6. Consumer Reports

7. Viatical Settlement
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
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.

8. Hazard - Moral

9. Earned Premium
The amount of the premium for which the policy protection has been given.
A single policy that is designed to insure two or more lives.
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
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

10. Pure Protection
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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 maximum amount a physician may charge a Medicare beneficiary for a covered service if the physician does not accept assignment of the Medicare approved amount.
Any life insurance written on the life of a minor.

11. Single Premium Whole Life (SPWL)

12. Income Replacement Contracts

13. Cash Value
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
A single policy that is designed to insure two or more lives.
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 amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

14. Fraternal Benefit Societies
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 special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Life or health insurance companies formed to provide insurance for members of an affiliated lodge - religious organization - or fraternal organization with a representative form of government.

15. Insurer
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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
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 organizations that have no capital stock - but are owned by the policyholders.

16. Risk - Standard
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer eligible - and for the insured's dependents for up to 36 months in cases of loss of eligibili
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Period of time after the premium due date during which premiums may still be paid - and the policy and its riders remain in force.

17. Retention

18. Custodial Car
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Care that is rendered to help an insured complete his/her activities of daily living.
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.

19. Dread (Specified) Disease Policy
An insurance company that is incorporated in another state.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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 periodic payment to the insurance company to keep the policy in force.

20. Defamation

21. Rider
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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 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.

22. Free Look
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").
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 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 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

23. Gatekeeper Model

24. Term Insurance
A claim to a provider or medical supplier to receive payments directly from Medicare.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
Insurance that provides protection for a specific period of time.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

25. Medicare Supplement Insurance
A table showing the incidence of sickness at specified ages.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
To reach the maturity date or time at which the face amount equals cash values.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.

26. Activities of Daily Living (ADLs)
A table showing the probability of death at specified ages.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
Insurance that pays dividends to policyholders.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

27. Medical Expense Insurance
A type of insurance that pays benefits for medical - surgical - and hospital costs.
Requirements approved by state law that must appear in all insurance policies.
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.
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

28. Underwriting
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The process of reviewing - accepting or rejecting applications for insurance.
A contract that provides income for a specified period of years - or for life.

29. Presumptive Disability
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.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

30. Adhesion

31. Actual Charge
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
The amount a physician or supplier actually bills for a particular service or supply.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

32. Rebating
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.
Any inducement offered in the sale of insurance products that is not specified in the policy.
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 time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

33. Authorized (Admitted) 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.
Insurance that does not pay dividends.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.

34. Hospital Confinement Rider
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
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 optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An agreement between two or more parties enforceable by law.

35. Countersignature
A table showing the probability of death at specified ages.
The act of signing an insurance policy by a licensed resident agent.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.
Uncertainty as to the outcome of an event when two or more possibilities exist.

36. Administrator
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.

37. Long-Term Disability Insurance
Insurance that pays over and above or in addition to basic policy limits.
The date specified in the policy as the date of termination.
Unplanned - unforeseen traumatic injury to the body.
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.

38. Loss of Income Insurance
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.

39. Exclusions
A mortality table used in life insurance that mathematically predicts the likelihood of death.
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.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.

40. Carriers
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.
Insurance that pays dividends to policyholders.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
Organizations that process claims and pay benefits in an insurance policy

41. Service Plans
A patient who is expected to die within an amount of time specified in the policy.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

42. Waiver of Cost
A circumstance that increases the likelihood of a loss.
An insurance company that is incorporated outside the United States.
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 disability rider - found in Universal Life Insurance - that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values.

43. Insurability

44. Valued Contract
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
The person who is named as first to receive benefits from a policy.

45. Group Health Insurance
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Health coverage provided to members of a group.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A temporary contract that puts an insurance policy into force before the premium has been paid.

46. Death Benefit
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.
The amount payable upon the death of the person whose life is insured.
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.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.

47. Nonforfeiture Values
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A patient who is expected to die within an amount of time specified in the policy.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.

48. Tertiary Beneficiary
The third in line to receive the benefits of a life insurance policy.
Insurance that does not pay dividends.
Care that is rendered to help an insured complete his/her activities of daily living.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.

49. Insolvent organization
The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third party who may have caused the loss.
A 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 physical illness - disease - or pregnancy - but not a mental illness.
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.

50. Warranty
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
A material stipulation in the policy that if breached may void coverage.
The head of the state department of insurance.
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.