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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. Parol
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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.
Legal term that distinguishes oral statements from written statements.
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.

2. Preferred Risk
The voluntary abandonment of a known or legal right or advantage.
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

3. Unilateral Contract
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A contract that legally binds only one party to contractual obligations after the premium is paid.
Termination of a policy because the premium has not been paid by the end of the grace period.

4. Loss
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.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A claim form that a claimant must submit after a loss occurs.
Insurance agent or broker.

5. Excess Charge
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
Organizations that process claims and pay benefits in an insurance policy
The individual's age when a policy is issued.
The difference between the Medicare approved amount for a service or supply and the actual charge.

6. Insured
A single policy that is designed to insure two or more lives.
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
The person or organization that is protected by insurance; the party to be indemnified.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

7. Cease and Desist Order
A table showing the probability of death at specified ages.
The date when the face amount of the life insurance becomes payable.
A claim form that a claimant must submit after a loss occurs.
A demand of a person to stop committing an action that is in violation of a provision.

8. Carriers
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.
Organizations that process claims and pay benefits in an insurance policy
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.

9. Flexible Spending Account (FSA)
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
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 statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

10. Dependent
A person who relies on another for support and maintenance.
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.

11. Attending Physician's Statement (APS)

12. Principal Amount
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
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
The full face value of a policy.
A choice of ways of receiving policy dividends - nonforfeiture values - death benefits - or cash values.

13. Earned Premium
The amount of the premium for which the policy protection has been given.
Choices available to the insured/owner for distribution of insurance proceeds.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

14. Express Authority

15. Spendthrift Clause
Health insurance policies that cover only specific accidents or diseases.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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.

16. Accelerated Benefits
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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.

17. Twisting

18. Substandard Risk
The third in line to receive the benefits of a life insurance policy.
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.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
Requirements approved by state law that must appear in all insurance policies.

19. Risk - Pure
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
The chief executive and administrative officer of a state insurance department.
The amount of time an employee has to sign up for a contributory group health plan.

20. Policyowner
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
A situation in which two parties provide the same help or advantages to each other (for example - Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A).

21. Notice of Claim

22. Medigap
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
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
The amount payable upon the death of the person whose life is insured.

23. Reciprocity

24. Liquidation
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 United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
Selling assets as a method of raising capital.
The head of the state department of insurance.

25. Oral Surgery
The act of signing an insurance policy by a licensed resident agent.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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.
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.

26. Expiration
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
The person who is named as first to receive benefits from a policy.
A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare.
The date specified in the policy as the date of termination.

27. Right to Return (aka Free Look)
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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 circumstance that increases the likelihood of a loss.
Insurance that does not pay dividends.

28. Adult Day Care
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
The individual's age when a policy is issued.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.

29. Underwriter
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
The withholding of known facts which - if material - can void a contract.
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.
Time between the beginning of a disability and the start of disability insurance benefits.

30. 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.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
A type of insurance that pays benefits for medical - surgical - and hospital costs.
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.

31. Permanent Life Insurance
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
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.
A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare.

32. Level Premium
A policy premium that remains the same over the period of time premiums are paid.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Insurance furnished by nongovernmental insuring organizations.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.

33. Permanent Disability
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
The amount of the premium for which the policy protection has been given.
Disability from which the insured does not recover.
A type of insurance that protects the insured against loss due to accidental bodily injury.

34. Payment of Claims
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
A policy premium that remains the same over the period of time premiums are paid.
A provision that specifies to whom claims payments are to be made.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.

35. Agent
Insurer's location of incorporation and the legal ability to write business in a state.
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.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
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.

36. Proceeds

37. Assignment (Health)
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
A claim to a provider or medical supplier to receive payments directly from Medicare.
Special powers granted to an agent by his or her agency contract.

38. Dual Choice
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 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 unplanned - unforeseen event which occurs suddenly and at an unspecified place.
Protection against loss due to sickness or bodily injury.

39. Errors and Omissions Policy (E&O)
Legal term that distinguishes oral statements from written statements.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
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.
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

40. Adverse Selection
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
The payment made by insurers to agents or brokers for the sale and service of policies.
A patient who is expected to die within an amount of time specified in the policy.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

41. Premium
The date when the face amount of the life insurance becomes payable.
A periodic payment to the insurance company to keep the policy in force.
The portion of premium for which policy protection has not yet been given.
An insurance sales office or company.

42. Authorized (Admitted) Insurer
A clause that defines the insurance company's and the insured's right to cancel or renew coverage.
A false statement or lie that can render the contract void.
An insurance company authorized and licensed to transact business in a particular state.
The withholding of known facts which - if material - can void a contract.

43. Retention

44. Fair Credit Reporting Act
A contract that legally binds only one party to contractual obligations after the premium is paid.
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 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.
The date when the face amount of the life insurance becomes payable.

45. Free Look
A unit of measure used to determine rates charged for insurance coverage.
A patient who is expected to die within an amount of time specified in the policy.
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
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

46. Accident Insurance
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
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.
An employer-funded account linked to a high deductible medical insurance plan.
A type of insurance that protects the insured against loss due to accidental bodily injury.

47. Waiver
A claim form that a claimant must submit after a loss occurs.
The voluntary abandonment of a known or legal right or advantage.
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 that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

48. Broker
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A physical illness - disease - or pregnancy - but not a mental illness.

49. Producer
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.
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.
Insurance agent or broker.
Health coverage provided to members of a group.

50. Risk
Uncertainty as to the outcome of an event when two or more possibilities exist.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
The authority granted to an agent by means of the agent's written contract.
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.