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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. Certificate of Authority
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
A temporary contract that puts an insurance policy into force before the premium has been paid.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
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.

2. Oral Surgery
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.
Insurance organizations that have no capital stock - but are owned by the policyholders.
Uncertainty as to the outcome of an event when two or more possibilities exist.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.

3. Disability Income Insurance

4. Policyowner
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
The third in line to receive the benefits of a life insurance policy.

5. Cafeteria Plan
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
A selection of health care benefits from which an employee may choose the ones that he/she needs.

6. Standard Risk
The amount of time an employee has to sign up for a contributory group health plan.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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 provision that allows an insurer - at its own expense - to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.

7. Orthodontics
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
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 area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

8. Applicant
A demand of a person to stop committing an action that is in violation of a provision.
A contract that provides income for a specified period of years - or for life.
The amount payable upon the death of the person whose life is insured.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

9. Major Medical 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).
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.
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 amount to which a policyowner is entitled if the policy is surrendered before maturity.

10. Intermediate Care
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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 optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.

11. Nonqualified Pla
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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.
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.

12. Primary Policy
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.
Insurance that pays over and above or in addition to basic policy limits.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

13. Loan Value
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
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.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.

14. Periodontics
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.

15. Broker
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
The date when the face amount of the life insurance becomes payable.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
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.

16. Authorized (Admitted) Insurer
An insurance company authorized and licensed to transact business in a particular state.
A table showing the incidence of sickness at specified ages.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

17. Out-of-Pocket Costs
Withdrawing the money from a qualified plan and placing it into another qualified plan.
Any group or individual who provides health care services.
An injury or disease which occurs suddenly and requires treatment within 24 hours.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.

18. Certificate of Insurance
A table showing the probability of death at specified ages.
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.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

19. Transfer
An insurance sales office or company.
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 ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A basic principle of insurance under which the risk of financial loss is assigned to another party.

20. Extension of Benefits

21. Agent's Authority
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Special powers granted to an agent by his or her agency contract.
Protection against loss due to sickness or bodily injury.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

22. Income Replacement Contracts

23. Paid-Up Insurance
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
Insurance furnished by nongovernmental insuring organizations.

24. 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 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 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.
The amount of the premium for which the policy protection has been given.

25. Payment of Claims
A provision that specifies to whom claims payments are to be made.
Organizations that process claims and pay benefits in an insurance policy
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.
The person who has possession of the policy - usually the insured.

26. Exposure
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.
An insurance company authorized and licensed to transact business in a particular state.
A unit of measure used to determine rates charged for insurance coverage.

27. Twisting

28. Accumulation Period
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A statement usually obtained from the applicant's doctor.

29. Prosthodontics
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
An insurance sales office or company.
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

30. Parol Evidence Rule
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
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.
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.
The age of the insured at a determined date.

31. Pre-Existing Condition
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 physical condition that existed before the effective date of the policy - usually excluded from coverage.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

32. Decreasing Term
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.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
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.
An insurance sales office or company.

33. Sickness
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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.
A physical illness - disease - or pregnancy - but not a mental illness.
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.

34. Lapse
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.
An insurance policy that provides payment if the insured's death is the result of an accident.
Termination of a policy because the premium has not been paid by the end of the grace period.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

35. Single Premium Whole Life (SPWL)

36. Intermediaries
Time between the beginning of a disability and the start of disability insurance benefits.
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 reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
An insurance company that conducts business in the state of incorporation.

37. Standard Provisions
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Insurance agent or broker.
Requirements approved by state law that must appear in all insurance policies.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).

38. Commingling
The age of the insured at a determined date.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
A fee or commission charged at the time of purchase of an annuity or a security.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

39. Superintendent (Commissioner - Director)
A contract that provides income for a specified period of years - or for life.
The head of the state department of insurance.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.

40. Nonmedical

41. Underwriting
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 process of reviewing - accepting or rejecting applications for insurance.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
The act that stipulates federal standards for private pension plans.

42. Principal Amount
Insurance agent or broker.
Lessening the possibility or severity of a loss.
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.
The full face value of a policy.

43. Insured
A medical benefits program jointly administered by the individual states and the federal government.
The first page of a policy.
The person or organization that is protected by insurance; the party to be indemnified.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

44. 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.
The individual's age when a policy is issued.
A patient who is expected to die within an amount of time specified in the policy.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.

45. Adult Day Care
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Disability from which the insured does not recover.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
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.

46. Risk Retention Group
Life insurance provided for members of a group.
The effect a person's indifference concerning loss has on the risk to be insured.
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.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

47. Short-Term Disability Insurance
A periodic payment to the insurance company to keep the policy in force.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
An insurance company that conducts business in the state of incorporation.
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.

48. Comprehensive Policy
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
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.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
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.

49. Flexible Premium
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 policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

50. Permanent Life Insurance
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.
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 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 first page of a policy.