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. Alzheimer's Disease
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.


2. Participating Policies (Par)
A legal impediment to denying a fact or restoring a right that has been previously waived.
Insurance that pays dividends to policyholders.
The payment made by insurers to agents or brokers for the sale and service of policies.
A mortality table used in life insurance that mathematically predicts the likelihood of death.


3. Single Premium Whole Life (SPWL)

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


4. Unilateral Contract
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.
Lessening the possibility or severity of a loss.
A contract that legally binds only one party to contractual obligations after the premium is paid.
The amount of time an employee has to sign up for a contributory group health plan.


5. Intermediaries
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.
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 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.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.


6. Living Benefits Rider
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
A person who relies on another for support and maintenance.


7. Morbidity Table
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
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.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A table showing the incidence of sickness at specified ages.


8. Adhesion

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


9. Legal Reserve

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


10. Settlement Options
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
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.
Choices available to the insured/owner for distribution of insurance proceeds.


11. Rescission
Protection against loss due to sickness or bodily injury.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.
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.
An agent/broker who handles insurer's funds in a trust capacity.


12. Administrator
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
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 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 appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.


13. Insuring Clause
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.


14. Accident Insurance
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A type of insurance that protects the insured against loss due to accidental bodily injury.
The act of signing an insurance policy by a licensed resident agent.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.


15. Pure Protection
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
The effect a person's indifference concerning loss has on the risk to be insured.
A group insurance plan that requires the employees to pay part of the premium.


16. Hospital Confinement Rider
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A patient who is expected to die within an amount of time specified in the policy.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
Choices available to the insured/owner for distribution of insurance proceeds.


17. Periodontics
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A facility which is licensed by the state to provide 24 hour nursing care.
A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.


18. Deductible
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 portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
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 provision that specifies to whom claims payments are to be made.


19. Insurable Interest
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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 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.


20. Foreign Insurer
The first page of a policy.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
An insurance company that is incorporated in another state.
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.


21. Secondary Beneficiary
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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.
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 temporary contract that puts an insurance policy into force before the premium has been paid.


22. Right to Return (aka Free Look)
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
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 effect of a person's reputation - character - living habits - etc. on his/her insurability.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.


23. Extended Care Facility
A facility which is licensed by the state to provide 24 hour nursing care.
Any group or individual who provides health care services.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
An insurance company that is incorporated in another state.


24. Multiple Employer Welfare Association (MEWA)
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Time between the beginning of a disability and the start of disability insurance benefits.
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.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.


25. Accidental Death Insurance

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


26. Risk - Speculative
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.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
Plans designed to help individuals save for qualified health expenses.


27. Health Insurance
The date when the face amount of the life insurance becomes payable.
Protection against loss due to sickness or bodily injury.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.


28. Explanation of Benefits (EOB)
An agent/broker who handles insurer's funds in a trust capacity.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
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 statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.


29. Actual Cash Value (ACV)

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


30. Insurability

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


31. Hazard - Moral

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


32. Nonforfeiture Values
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
An insurance policy that provides payment if the insured's death is the result of an accident.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).


33. Restorative Care
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.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
The third in line to receive the benefits of a life insurance policy.


34. Orthodontics
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A circumstance that increases the likelihood of a loss.
Lessening the possibility or severity of a loss.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.


35. Underwriter
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
The person or organization that is protected by insurance; the party to be indemnified.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.


36. Adult Day Care
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
Special powers granted to an agent by his or her agency contract.


37. Fiduciary

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


38. Explanation of Medicare Benefits
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.
Insurance that provides protection for a specific period of time.
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 statement sent to a Medicare patient indicating how the Medicare claim will be settled.


39. Extension of Benefits

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


40. Lump Sum
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.


41. Medicaid
A medical benefits program jointly administered by the individual states and the federal government.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.


42. Agency
An insurance sales office or company.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Any life insurance written on the life of a minor.
Termination of a policy because the premium has not been paid by the end of the grace period.


43. Binder (Binding Receipt)
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.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
A temporary contract that puts an insurance policy into force before the premium has been paid.


44. Morbidity Rate
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.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
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.


45. Proof of Loss
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A claim form that a claimant must submit after a loss occurs.


46. Transfer
A basic principle of insurance under which the risk of financial loss is assigned to another party.
Insurer's location of incorporation and the legal ability to write business in a state.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'


47. Accumulation Period
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 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.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.


48. Reserve
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
The person or organization that is protected by insurance; the party to be indemnified.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
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.


49. Grace Period
An entity certified by the insured's health plan that provides health care services under contract.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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 rider that is added to a life insurance policy to pay log-term care benefits. The amount of benefits available for LTC depends upon the life insurance benefits available; however - the benefits paid toward LTC will reduce the life insurance policy'


50. Medical Expense Insurance
A type of insurance that pays benefits for medical - surgical - and hospital costs.
The person who is named as first to receive benefits from a policy.
An agent licensed in a state in which he or she is not a resident.
An agreement between two or more parties enforceable by law.