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. Long-Term Disability Insurance
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
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.
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.
The date when the face amount of the life insurance becomes payable.

2. 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.
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 individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A unit of measure used to determine rates charged for insurance coverage.

3. Beneficiary
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.
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 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
The person who receives the proceeds from the policy when the insured dies.

4. Defamation

5. Coordination of Benefits
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.
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 material stipulation in the policy that if breached may void coverage.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

6. Medical Savings Account
The date specified in the policy as the date of termination.
An employer-funded account linked to a high deductible medical insurance plan.
Choices available to the insured/owner for distribution of insurance proceeds.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

7. Pure Protection
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.

8. Accidental Death and Dismemberment (AD&D)

9. Agency
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 sales office or company.
A provision that specifies to whom claims payments are to be made.
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.

10. Renewability Clause

11. Noncancelable
Insurer's location of incorporation and the legal ability to write business in a state.
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.
An entity certified by the insured's health plan that provides health care services under contract.
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.

12. Approved Amount
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
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.

13. Periodontics
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A fee or commission charged at the time of purchase of an annuity or a security.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.

14. Risk - Speculative
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.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

15. Explanation of Medicare Benefits
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.

16. Standard Risk
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
Disability from which the insured does not recover.

17. Pro Rata Cancellation
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.
The authority granted to an agent by means of the agent's written contract.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

18. Flexible Spending Account (FSA)
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

19. Liquidation
Selling assets as a method of raising capital.
A claim to a provider or medical supplier to receive payments directly from Medicare.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
Health coverage provided to members of a group.

20. 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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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.
A false statement or lie that can render the contract void.

21. Mode of Payment
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
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.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

22. 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.
Termination of a policy because the premium has not been paid by the end of the grace period.
A contract that provides income for a specified period of years - or for life.
Insurer's location of incorporation and the legal ability to write business in a state.

23. Cash Value
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
Any life insurance written on the life of a minor.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
The person or organization that is protected by insurance; the party to be indemnified.

24. Permanent Life Insurance
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.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
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.
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.

25. Presumptive Disability
The voluntary abandonment of a known or legal right or advantage.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

26. Payment of Claims
A provision that specifies to whom claims payments are to be made.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
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 fee or commission charged at the time of purchase of an annuity or a security.

27. Rebating
Any inducement offered in the sale of insurance products that is not specified in the policy.
An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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.

28. Warranty
A medical benefits program jointly administered by the individual states and the federal government.
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.
A material stipulation in the policy that if breached may void coverage.
The person or organization that is protected by insurance; the party to be indemnified.

29. Preferred Risk
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
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.
The person who receives the proceeds from the policy when the insured dies.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

30. Accidental Bodily Injury
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
Unplanned - unforeseen traumatic injury to the body.
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 professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.

31. Group Life
Insurer's location of incorporation and the legal ability to write business in a state.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Life insurance provided for members of a group.
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.

32. Endodontics
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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.

33. Private Insurance
A periodic payment to the insurance company to keep the policy in force.
Insurance furnished by nongovernmental insuring organizations.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

34. Commissioner (Superintendent - Director)
The chief executive and administrative officer of a state insurance department.
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.
Disability from which the insured does not recover.
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.

35. Extension of Benefits

36. Living Benefits Rider
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
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 rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.

37. Limited Policies
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.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
Health insurance policies that cover only specific accidents or diseases.

38. Life Expectancy
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
The person who has possession of the policy - usually the insured.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

39. Comprehensive Policy
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
Legal term that distinguishes oral statements from written statements.
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.

40. Dependent
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 false statement or lie that can render the contract void.
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 person who relies on another for support and maintenance.

41. Sharing
A selection of health care benefits from which an employee may choose the ones that he/she needs.
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 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.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

42. Accident Insurance
A type of insurance that protects the insured against loss due to accidental 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 amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
The first page of a policy.

43. Medicare Supplement Insurance
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
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.
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.

44. Universal Life
A combination of a flexible premium and adjustable life insurance.
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).
Organizations that process claims and pay benefits in an insurance policy
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.

45. Mortality Table
Requirements approved by state law that must appear in all insurance policies.
The date specified in the policy as the date of termination.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A table showing the probability of death at specified ages.

46. Personal Contract

47. Medical Information Bureau (MIB)
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.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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 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

48. Adult Day Care
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
The person or organization that is protected by insurance; the party to be indemnified.
A statement usually obtained from the applicant's doctor.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

49. Level Premium
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
The amount payable upon the death of the person whose life is insured.
A policy premium that remains the same over the period of time premiums are paid.

50. Concealment
An insurance company authorized and licensed to transact business in a particular state.
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 insurance policy that provides payment if the insured's death is the result of an accident.
The withholding of known facts which - if material - can void a contract.