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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. Admitted (Authorized) Insurer
The first page of a policy.
The age of the insured at a determined date.
An insurance company authorized and licensed to transact business in a particular state.
Insurance furnished by nongovernmental insuring organizations.

2. Long-Term Disability Insurance
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.
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 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.

3. Natural Premium
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.
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.
The difference between the Medicare approved amount for a service or supply and the actual charge.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).

4. Contributory
A group insurance plan that requires the employees to pay part of the premium.
An agent/broker who handles insurer's funds in a trust capacity.
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
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.

5. Proof of Loss
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.
The third in line to receive the benefits of a life insurance policy.
A claim form that a claimant must submit after a loss occurs.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

6. Permanent Life Insurance
An employer-funded account linked to a high deductible medical insurance plan.
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.
Requirements approved by state law that must appear in all insurance policies.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

7. Insured
Insurance furnished by nongovernmental insuring organizations.
Plans designed to help individuals save for qualified health expenses.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
The person or organization that is protected by insurance; the party to be indemnified.

8. Maturity Date
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
The date when the face amount of the life insurance becomes payable.
Insurance furnished by nongovernmental insuring organizations.
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.

9. Estoppel
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
A legal impediment to denying a fact or restoring a right that has been previously waived.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

10. Defamation

11. Spendthrift Clause
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 booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
The person who receives the proceeds from the policy when the insured dies.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.

12. Rollover
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
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.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
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

13. Coercion
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
The date when an insurance policy begins (also known as the inception date). The period of time in which an employee may enroll in a group health care plan without having to provide evidence of insurability.
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A type of insurance that pays benefits for medical - surgical - and hospital costs.

14. Transfer
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 agent/broker who handles insurer's funds in a trust capacity.
The individual's age when a policy is issued.

15. Short-Term Disability Insurance
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
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 amount payable upon the death of the person whose life is insured.
An insurance company that is incorporated in another state.

16. Extended Care Facility
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.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
A facility which is licensed by the state to provide 24 hour nursing care.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.

17. Health Maintenance Organization (HMO)
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 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 transfer of ownership rights of a life insurance policy from one person to another.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.

18. Income Replacement Contracts

19. Workers Compensation
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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.
The full face value of a policy.
Requirements approved by state law that must appear in all insurance policies.

20. Accumulation Period
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.
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.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

21. Insurability

22. Retention

23. Aleatory
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.
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 cause of a possible loss.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

24. Adjuster
A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
A physical illness - disease - or pregnancy - but not a mental illness.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.

25. Intermediate Care
The withholding of known facts which - if material - can void a contract.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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.

26. Pro Rata Cancellation
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
An agreement between two or more parties enforceable by law.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

27. Peril
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
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 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.
The cause of a possible loss.

28. Home Health Agency

29. Exposure
A unit of measure used to determine rates charged for insurance coverage.
An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies - loses his/her sight - or loses two limbs due to an accident.
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 rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

30. Enrollment Period
An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed - before death.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The amount of time an employee has to sign up for a contributory group health plan.
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

31. Basic Illustration
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed - before death.
Special powers granted to an agent by his or her agency contract.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

32. Medicare
A combination of a flexible premium and adjustable life insurance.
The United States federal government plan for paying certain hospital and medical expenses for persons who qualify.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
Any inducement offered in the sale of insurance products that is not specified in the policy.

33. Qualified Plan
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
A selection of health care benefits from which an employee may choose the ones that he/she needs.

34. Oral Surgery
A type of hazard that arises from the physical characteristics of an individual - such as a physical disability due to either current circumstance or a condition present at birth.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
Insurance furnished by nongovernmental insuring organizations.

35. Grace Period
A contract that pays a stated amount in the event of a loss (disability insurance/life 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.
Any life insurance written on the life of a minor.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.

36. Health Reimburse
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.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
The person who has possession of the policy - usually the insured.

37. Loss
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
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 difference between the Medicare approved amount for a service or supply and the actual charge.

38. Flexible Spending Account (FSA)
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
An insurance company that is incorporated in another state.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

39. Periodontics
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders.
Insurer's location of incorporation and the legal ability to write business in a state.

40. Convertible
A claim to a provider or medical supplier to receive payments directly from Medicare.
Any group or individual who provides health care services.
A provision that specifies to whom claims payments are to be made.
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).

41. Coinsurance
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
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.

42. Comprehensive Major Medical
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 combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
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).

43. Subrogation
Any group or individual who provides health care services.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
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.
A fee or commission charged at the time of purchase of an annuity or a security.

44. Agent's Authority
An agent/broker who handles insurer's funds in a trust capacity.
Special powers granted to an agent by his or her agency contract.
A mortality table used in life insurance that mathematically predicts the likelihood of death.
The person who receives the proceeds from the policy when the insured dies.

45. Annual Statement
An insurance sales office or company.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
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.

46. Settlement Options
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Choices available to the insured/owner for distribution of insurance proceeds.
A statement usually obtained from the applicant's doctor.
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.

47. Lloyd's Associations
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 liability insurance company owned by its members - which are exposed to similar liability risks by virtue of being in the same business or industry.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Insurance agent or broker.

48. Face
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
The first page of a policy.
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.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).

49. Law of Large Numbers
A table showing the incidence of sickness at specified ages.
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 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.
The person who receives the proceeds from the policy when the insured dies.

50. Accidental Death and Dismemberment (AD&D)