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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. Elimination Period
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 waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
An applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

2. Insolvent organization
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 salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
Insurance plans where the health care services rendered are the benefits instead of monetary 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.

3. Renewable Term
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.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

4. Limiting Charge
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
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.
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.
The portion of premium for which policy protection has not yet been given.

5. Standard Risk
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.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
A contract that legally binds only one party to contractual obligations after the premium is paid.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.

6. Lloyd's Associations
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.
An agent/broker who handles insurer's funds in a trust capacity.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
Selling assets as a method of raising capital.

7. Certificate of Insurance
An insurance company that conducts business in the state of incorporation.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A fee or commission charged at the time of purchase of an annuity or a security.

8. Fixed Annuity
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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.
An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.

9. Accidental Death Insurance

10. Permanent Life Insurance
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 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
Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill.
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.

11. Custodial Car
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Lessening the possibility or severity of a loss.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
Care that is rendered to help an insured complete his/her activities of daily living.

12. Primary Beneficiary
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A termination of a policy by an insurer on the anniversary or renewal date.
Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.
The person who is named as first to receive benefits from a policy.

13. Rebating
A basic principle of insurance under which the risk of financial loss is assigned to another party.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
Any inducement offered in the sale of insurance products that is not specified in the policy.
The person or organization that is protected by insurance; the party to be indemnified.

14. Mortality Table
A physical or mental impairment - either congenital or resulting from an injury or sickness.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
A table showing the probability of death at specified ages.

15. Contract
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
An employer-funded account linked to a high deductible medical insurance plan.
An agreement between two or more parties enforceable by law.
The age of the insured at a determined date.

16. Agency
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A form of misrepresentation in which an agent persuades an insured/owner to cancel - lapse - or switch policies - even when it's to the insured's disadvantage.
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to
An insurance sales office or company.

17. Spendthrift Clause
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 clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
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.

18. Annuity
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.
A contract that provides income for a specified period of years - or for life.
A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

19. Intentional Injury
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
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.

20. Expiration
The date specified in the policy as the date of termination.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A patient who is expected to die within an amount of time specified in 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.

21. Nonresident Agent
An agent licensed in a state in which he or she is not a resident.
An insurance company that conducts business in the state of incorporation.
The voluntary abandonment of a known or legal right or advantage.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.

22. Coverage
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
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 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.

23. Excess Insurance
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.
Insurance that pays over and above or in addition to basic policy limits.
A medical benefits program jointly administered by the individual states and the federal government.
Insurance that provides protection for a specific period of time.

24. Representations
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).
Time between the beginning of a disability and the start of disability insurance benefits.
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 insurance that pays benefits for medical - surgical - and hospital costs.

25. Health Savings Accounts (HSAs)
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 type of insurance that protects the insured against loss due to accidental bodily injury.
A table showing the incidence of sickness at specified ages.
Plans designed to help individuals save for qualified health expenses.

26. Actuary
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
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.
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.
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.

27. Reinsurance
The accounting measurement of an insurer's future obligations to pay claims to policyowners.
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.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
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.

28. Morbidity Table
A table showing the incidence of sickness at specified ages.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
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.

29. Noncancelable
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
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 booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
A selection of health care benefits from which an employee may choose the ones that he/she needs.

30. Producer
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.
Insurance agent or broker.
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
A facility which is licensed by the state to provide 24 hour nursing care.

31. Accumulation Period
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments.
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 policy premium that remains the same over the period of time premiums are paid.

32. Extension of Benefits

33. Medical Savings Account
An entity certified by the insured's health plan that provides health care services under contract.
An employer-funded account linked to a high deductible medical insurance plan.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
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

34. Integrated LTC Rider

35. Capital Amount
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
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
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.

36. Activities of Daily Living (ADLs)
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
Any inducement offered in the sale of insurance products that is not specified in the policy.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

37. Universal Life
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Canceling the policy with a less than proportionate return of premium.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
A combination of a flexible premium and adjustable life insurance.

38. Risk
Uncertainty as to the outcome of an event when two or more possibilities exist.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
A contract that provides income for a specified period of years - or for life.
A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to

39. 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.
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.
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.

40. Restorative Care
A medical benefits program jointly administered by the individual states and the federal government.
The amount of time an employee has to sign up for a contributory group health plan.
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.

41. Insurer
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 type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
Insurance that provides protection for a specific period of time.
An entity that indemnifies against losses - provides benefits - or renders services (also known as "company" or "insurance company").

42. Actual Cash Value (ACV)

43. Accelerated Benefits
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
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.
Legal term that distinguishes oral statements from written statements.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.

44. Assignment (Health)
The date specified in the policy as the date of termination.
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).
An insurance company that conducts business in the state of incorporation.
A claim to a provider or medical supplier to receive payments directly from Medicare.

45. Oral Surgery
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 applicant or insured who has a higher than normal probability of loss - and who may be subject to an increased premium.
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.

46. Joint Life
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.
The act of signing an insurance policy by a licensed resident agent.
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 single policy that is designed to insure two or more lives.

47. Consumer Reports

48. Morbidity Rate
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 single policy that is designed to insure two or more lives.
An insurance policy that provides payment if the insured's death is the result of an accident.
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.

49. Risk Retention Group
Any inducement offered in the sale of insurance products that is not specified in the policy.
A temporary contract that puts an insurance policy into force before the premium has been paid.
A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer.
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.

50. Insurance
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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 specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
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.