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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. Income Replacement Contracts

2. Benefit Period
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
The voluntary abandonment of a known or legal right or advantage.
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.
An insurance sales office or company.

3. Disclosure
The transfer of ownership rights of a life insurance policy from one person to another.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A medical benefits program jointly administered by the individual states and the federal government.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

4. Home Health Services
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.
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 covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

5. Endodontics
The fair and equal bargaining by both parties in forming the contract - where the applicant must make full disclosure of risk to the company - and the insurance company must be fair in underwriting the risk.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The date when the face amount of the life insurance becomes payable.
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

6. Fraud
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The act that stipulates federal standards for private pension plans.
The person who has possession of the policy - usually the insured.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

7. Exposure
Requirements approved by state law that must appear in all insurance policies.
A unit of measure used to determine rates charged for insurance coverage.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

8. Actual Charge
A single policy that is designed to insure two or more lives.
The amount a physician or supplier actually bills for a particular service or supply.
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 benefit plan that may discriminate - is not required to be filed with the IRS - and does not provide a current tax deduction for contributions.

9. Hazard - Moral

10. Major Medical Insurance
The age of the insured at a determined date.
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 individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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.

11. Superintendent (Commissioner - Director)
The head of the state department of insurance.
Insurance that provides protection for a specific period of time.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

12. Basic Illustration
Insurance agent or broker.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
A material stipulation in the policy that if breached may void coverage.

13. Health Maintenance Organization (HMO)
Insurance that does not pay dividends.
The amount of time an employee has to sign up for a contributory group health plan.
A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
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.

14. Annuity
A contract that provides income for a specified period of years - or for life.
The third in line to receive the benefits of a life insurance policy.
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

15. Omnibus Budget Reconciliation Act
A request for payment of the benefits provided by an insurance contract.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
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 policy premium that remains the same over the period of time premiums are paid.

16. Convertible
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.
An entity certified by the insured's health plan that provides health care services under contract.
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 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).

17. Explanation of Benefits (EOB)
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
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.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.

18. Activities of Daily Living (ADLs)
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.

19. Exclusions
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
The head of the state department of insurance.
The person who is named as first to receive benefits from a policy.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

20. Insolvent organization
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
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.
The voluntary abandonment of a known or legal right or advantage.
Choices available to the insured/owner for distribution of insurance proceeds.

21. Hazard - Morale

22. Unilateral Contract
A contract that legally binds only one party to contractual obligations after the premium is paid.
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.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
Withdrawing the money from a qualified plan and placing it into another qualified plan.

23. Skilled Nursing Care
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.
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.
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.

24. Morbidity Table
A combination of a flexible premium and adjustable life insurance.
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 table showing the incidence of sickness at specified ages.
An agent/broker who handles insurer's funds in a trust capacity.

25. Limiting Charge
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
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 agreement between two or more parties enforceable by law.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.

26. Renewable Term
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
An insurance company authorized and licensed to transact business in a particular state.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
Disability from which the insured does not recover.

27. Policy Loan
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.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

28. Liquidation
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
Legal term that distinguishes oral statements from written statements.
Selling assets as a method of raising capital.
An insurance company authorized and licensed to transact business in a particular state.

29. Domicile of Insurer

30. Nonqualified Pla
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
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 covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.

31. Warranty
The full face value of a policy.
A material stipulation in the policy that if breached may void coverage.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

32. Countersignature
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
The act of signing an insurance policy by a licensed resident agent.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.

33. Nonmedical

34. Mutual Companies
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Insurance organizations that have no capital stock - but are owned by the policyholders.

35. Personal Contract

36. Disability
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Choices available to the insured/owner for distribution of insurance proceeds.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
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.

37. Concealment
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
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 act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
The withholding of known facts which - if material - can void a contract.

38. Rate Service Organization
A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine.
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.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
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.

39. Executory Contract
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
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.
The head of the state department of insurance.
A temporary contract that puts an insurance policy into force before the premium has been paid.

40. Pure Protection
The age of the insured at a determined date.
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

41. Consideration
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
The effect a person's indifference concerning loss has on the risk to be insured.
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

42. Capital Amount
The fair and equal bargaining by both parties in forming the contract - where the applicant must make full disclosure of risk to the company - and the insurance company must be fair in underwriting the risk.
A table showing the incidence of sickness at specified ages.
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.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

43. Accidental Death Benefits
A type of insurance that protects the insured against loss due to accidental bodily injury.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
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 policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death.

44. Nonadmitted (Nonauthorized)
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.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
The act that stipulates federal standards for private pension plans.
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.

45. Basic Hospital Expense Insurance
Insurance that provides protection for a specific period of time.
A group insurance plan that requires the employees to pay part of the premium.
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.
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.

46. Mode of Payment
A facility which is licensed by the state to provide 24 hour nursing care.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.

47. Rider
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 feature that allows the policyholder to vary premium payments in the amount and/or timing.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

48. Respite Care
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
A request for payment of the benefits provided by an insurance contract.
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 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.

49. Medicare Supplement Insurance
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 uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).

50. Adjustable Life
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
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 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.