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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. Consideration Clause
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
Life insurance provided for members of a group.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
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.

2. 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 statement sent to a Medicare patient indicating how the Medicare claim will be settled.
The act of signing an insurance policy by a licensed resident agent.
The head of the state department of insurance.

3. Apparent Authority
Requirements approved by state law that must appear in all insurance policies.
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

4. Broker
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A variation of whole life insurance that charges a level annual premium and provides a level - guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.

5. Lump Sum
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.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Organizations that process claims and pay benefits in an insurance policy
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.

6. Risk - Substandard
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 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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.

7. Income Replacement Contracts

8. Acquired Immunodeficiency Syndrome (AIDS)
The head of the state department of insurance.
An infectious and incurable disease caused by the human immunodeficiency virus (HIV).
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.
A contract that legally binds only one party to contractual obligations after the premium is paid.

9. Lloyd's Associations
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.

10. Accident
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
An insurance policy that provides payment if the insured's death is the result of an accident.
Health insurance policies that cover only specific accidents or diseases.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.

11. Actuary
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 physical or mental impairment - either congenital or resulting from an injury or sickness.
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

12. Agent's Authority
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
Special powers granted to an agent by his or her agency contract.

13. Permanent Life Insurance
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.
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.
An agent/broker who handles insurer's funds in a trust capacity.
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.

14. Back-End Load
A circumstance that increases the likelihood of a loss.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

15. Periodontics
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.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
A group insurance plan that requires the employees to pay part of the premium.

16. Contributory
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
A provision that specifies to whom claims payments are to be made.
A group insurance plan that requires the employees to pay part of the premium.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.

17. Service Plans
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.
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.
An insurance company that conducts business in the state of incorporation.
Insurance plans where the health care services rendered are the benefits instead of monetary benefits.

18. Insured
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.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
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 person or organization that is protected by insurance; the party to be indemnified.

19. Medicaid
The authority granted to an agent by means of the agent's written contract.
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.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
A medical benefits program jointly administered by the individual states and the federal government.

20. Rate Service Organization
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 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.
Disability from which the insured does not recover.
A physical illness - disease - or pregnancy - but not a mental illness.

21. Out-of-Pocket Costs
A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis).
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
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
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.

22. Health Maintenance Organization (HMO)
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.
An insurance company authorized and licensed to transact business in a particular state.
A single policy that is designed to insure two or more lives.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

23. Approved Amount
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
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.
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.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.

24. Comprehensive Policy
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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 plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.

25. Certificate of Insurance
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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.
Choices available to the insured/owner for distribution of insurance proceeds.

26. Domestic Insurer
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).
An insurance company authorized and licensed to transact business in a particular state.
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
An insurance company that conducts business in the state of incorporation.

27. Premium
A periodic payment to the insurance company to keep the policy in force.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
A group insurance plan that requires the employees to pay part of the premium.

28. Birthday Rule
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.
The chief executive and administrative officer of a state insurance department.
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.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.

29. Alzheimer's Disease
A provision that specifies to whom claims payments are to be made.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
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 person making application for - or offering him/herself or another to be insured under an insurance contract.

30. Partial Disability

31. Dependent
A person who relies on another for support and maintenance.
An insurance company that is incorporated in another state.
The person who receives the proceeds from the policy when the insured dies.
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.

32. Policy Loan
A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses.
A termination of a policy by an insurer on the anniversary or renewal date.
Canceling the policy with a less than proportionate return of premium.
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.

33. Renewable Term
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
An insurance sales office or company.

34. Credit Life Insurance
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

35. Excess Charge
A termination of a policy by an insurer on the anniversary or renewal date.
The difference between the Medicare approved amount for a service or supply and the actual charge.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.
A circumstance that increases the likelihood of a loss.

36. Twisting

37. 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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A claim to a provider or medical supplier to receive payments directly from Medicare.
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.

38. Buyer's Guide
A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it - agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.
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.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
Legal term that distinguishes oral statements from written statements.

39. Probationary Period
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'
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.

40. Major Medical Insurance
Insurance that does not pay dividends.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
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.
Insurance that pays dividends to policyholders.

41. Effective Date
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 amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
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.

42. Administrator
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 contract that provides income for a specified period of years - or for life.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.

43. Fiduciary

44. Insolvent organization
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 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 legal impediment to denying a fact or restoring a right that has been previously waived.
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.

45. Adhesion

46. Over Insurance
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
A contract offered on a "take-it-or-leave-it" basis by an insurer - in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.

47. Waiver
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
The voluntary abandonment of a known or legal right or advantage.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

48. Presumptive Disability
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.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
Disability from which the insured does not recover.
A provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

49. Waiver of Premium
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).
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
Protection against loss due to sickness or bodily injury.
Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums.

50. Pure Protection
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 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.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.