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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. Applicant
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 annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments.
A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

2. Principal Amount
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
The full face value of a policy.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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.

3. Coercion
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A temporary contract that puts an insurance policy into force before the premium has been paid.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

4. Qualified Plan
An insurance company that is incorporated outside the United States.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
The amount a physician or supplier actually bills for a particular service or supply.

5. Insurability

6. Exclusions
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.

7. Disability Income Insurance

8. Convertible
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).
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
A physical or mental impairment - either congenital or resulting from an injury or sickness.

9. Disclosure
An act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
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.
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 entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

10. Risk
Uncertainty as to the outcome of an event when two or more possibilities exist.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
A combination of a flexible premium and adjustable life insurance.

11. Sharing
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
A table showing the incidence of sickness at specified ages.
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 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.

12. Orthodontics
The full face value of a policy.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.

13. Reinsurance
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
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 demand of a person to stop committing an action that is in violation of a provision.
A contract that legally binds only one party to contractual obligations after the premium is paid.

14. Beneficiary
The person who receives the proceeds from the policy when the insured dies.
The chief executive and administrative officer of a state insurance department.
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 arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

15. Commingling
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 provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
A fee or commission charged at the time of purchase of an annuity or a security.
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.

16. Blanket Medical 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 policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash - he/she might choose never to fly in a plane).
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.

17. Parol
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.
Legal term that distinguishes oral statements from written statements.
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 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.

18. Payor Benefit
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 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.
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 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.

19. Reciprocity

20. Coinsurance Clause
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 detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.
An insurance company that is incorporated in another state.
A request for payment of the benefits provided by an insurance contract.

21. Living Benefits Rider
An insurance company authorized and licensed to transact business in a particular state.
A provision that specifies to whom claims payments are to be made.
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.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

22. Waiver
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
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.
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.
The voluntary abandonment of a known or legal right or advantage.

23. Agent's Authority
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.
Special powers granted to an agent by his or her agency contract.
A facility which is licensed by the state to provide 24 hour nursing care.
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.

24. Insolvent organization
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
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 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
Insurance that does not pay dividends.

25. Standard Risk
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.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
Insurance that pays dividends to policyholders.

26. Premium
A contract that provides income for a specified period of years - or for life.
An insurance sales office or company.
A periodic payment to the insurance company to keep the policy in force.
Insurer's location of incorporation and the legal ability to write business in a state.

27. Representations
A material stipulation in the policy that if breached may void coverage.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.
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.

28. Residual Disability
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
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.
Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability - but is still not able to perform at the same level as before becoming disabled.
Choices available to the insured/owner for distribution of insurance proceeds.

29. Commission
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.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
The payment made by insurers to agents or brokers for the sale and service of policies.
Insurance agent or broker.

30. Basic Illustration
The effect a person's indifference concerning loss has on the risk to be insured.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
Statements made by the applicant on the insurance application that are believed to be true - but are not guaranteed to be true.

31. Nonforfeiture Values
The date when the face amount of the life insurance becomes payable.
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.

32. Risk - Standard
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
The person who receives the proceeds from the policy when the insured dies.
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.
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

33. Long-Term Disability Insurance
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.
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.

34. Loan Value
A false statement or lie that can render the contract void.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
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.
The head of the state department of insurance.

35. Explanation of Benefits (EOB)
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 combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
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.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.

36. Actual Charge
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
The amount a physician or supplier actually bills for a particular service or supply.

37. Carriers
Organizations that process claims and pay benefits in an insurance policy
Care that is rendered to help an insured complete his/her activities of daily living.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.

38. Domestic Insurer
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
An insurance company that conducts business in the state of incorporation.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
Insurance that does not pay dividends.

39. 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.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
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.

40. Nonauthorized (Nonadmitted)
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.
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.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
Legal term that distinguishes oral statements from written statements.

41. Apparent Authority
The appearance or the assumption of authority based on the actions - words - or deeds of the principal or because of circumstances the principal created.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.
Selling assets as a method of raising capital.
A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease.

42. Death Benefit
The act that stipulates federal standards for private pension plans.
The amount payable upon the death of the person whose life is insured.
A type of insurance that covers a group of individuals against loss of pay due to accident or sickness.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.

43. Front-End Load
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 agreement between two or more parties enforceable by law.
A fee or commission charged at the time of purchase of an annuity or a security.
The amount of time an employee has to sign up for a contributory group health plan.

44. Buy-Sell Agreement
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.
Disability from which the insured does not recover.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.

45. Comprehensive Policy
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
A physical or mental impairment - either congenital or resulting from an injury or sickness.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
Insurance which can - at the election of the policyowner - be renewed at the end of a term without evidence of insurability.

46. Single Premium Whole Life (SPWL)

47. Alzheimer's Disease
A statement usually obtained from the applicant's doctor.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
To reach the maturity date or time at which the face amount equals cash values.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.

48. Secondary Beneficiary
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.
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 demand of a person to stop committing an action that is in violation of a provision.
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. Custodial Car
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 contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Care that is rendered to help an insured complete his/her activities of daily living.

50. Earned Premium
An insurance company that is incorporated outside the United States.
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
The amount of the premium for which the policy protection has been given.
Requirements approved by state law that must appear in all insurance policies.