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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. Coinsurance Clause
An agent licensed in a state in which he or she is not a resident.
Life insurance provided for members of a group.
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.
To reach the maturity date or time at which the face amount equals cash values.

2. Skilled Nursing Care
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
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.

3. Living Benefits Rider
The amount payable by the insurance company - usually in at the insured's death or when the policy matures.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.
An insurance company authorized and licensed to transact business in a particular state.
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.

4. Conditional Contract
The amount payable upon the death of the person whose life is insured.
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
The transfer of ownership rights of a life insurance policy from one person to another.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.

5. Defamation

6. Intermediaries
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.

7. Life Expectancy
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
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.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

8. Medicaid
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
A medical benefits program jointly administered by the individual states and the federal government.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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.

9. Executory Contract
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.
A patient who is expected to die within an amount of time specified in the policy.

10. Endorsement
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
A form changing the provisions of and attached to a life insurance policy (also known as a rider).
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.
A facility which is licensed by the state to provide 24 hour nursing care.

11. Adult Day Care
Organizations that process inpatient and outpatient claims on individuals by hospitals - skilled nursing facilities - home health agencies - hospices and certain other providers of health services.
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 program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
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.

12. Reinsurance
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 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 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.

13. CSO Table (The Commissioner's Standard Ordinary Table)
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.
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 mortality table used in life insurance that mathematically predicts the likelihood of death.
Disability from which the insured does not recover.

14. Contract
An agreement between two or more parties enforceable by law.
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.
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits.

15. Boycott
A type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
The transfer of ownership rights of a life insurance policy from one person to another.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.
An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions.

16. 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.
The amount of the premium for which the policy protection has been given.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A unit of measure used to determine rates charged for insurance coverage.

17. Certificate of Insurance
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.
A person making application for - or offering him/herself or another to be insured under an insurance contract.
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
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. Agent
A policy premium that remains the same over the period of time premiums are paid.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
A group of small employers who do not qualify for group insurance individually - formed to establish a group health plan or self-funded plan.

19. Group Life
To reach the maturity date or time at which the face amount equals cash values.
Any entity of at least two employers - other than a duly admitted insurer - that establishes an employee benefit plan for the purpose of offering or providing accident and sickness or death benefits to the employees.
Life insurance provided for members of a group.
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.

20. Accelerated Benefits
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
A contract that legally binds only one party to contractual obligations after the premium is paid.
The person who is named as first to receive benefits from a policy.
An entity that obtains and possesses a license solely for the purpose of writing business on the owner - immediate family - relatives - employer and employees.

21. Indemnify
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
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.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.
A type of insurance that pays benefits for medical - surgical - and hospital costs.

22. Hazard - Moral

23. Limited-Pay Whole Life

24. Single Premium Whole Life (SPWL)

25. Explanation of Medicare Benefits
A statement sent to a Medicare patient indicating how the Medicare claim will be settled.
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 statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
A fee or commission charged at the time of purchase of an annuity or a security.

26. Avoidance
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
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 document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.

27. Nonadmitted (Nonauthorized)
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
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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.
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.

28. Insuring Clause
A general statement that identifies the basic agreement between the insurance company and the insured - usually located on the first page of the policy.
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 tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
A termination of a policy by an insurer on the anniversary or renewal date.

29. Annual Statement
A group insurance plan that requires the employees to pay part of the premium.
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.
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.
A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.

30. Excess Charge
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 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.
The difference between the Medicare approved amount for a service or supply and the actual charge.
The head of the state department of insurance.

31. Mortality Table
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
A table showing the probability of death at specified ages.
A contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurrence.

32. Endodontics
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
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 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.

33. Nonauthorized (Nonadmitted)
The date when the face amount of the life insurance becomes payable.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
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.
A medical benefits program jointly administered by the individual states and the federal government.

34. Approved Amount
Written and /or oral statements regarding a consumer's credit - character - reputation - or habits collected by a reporting agency from employment records - credit reports - and other public sources.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

35. Binder (Binding Receipt)
A temporary contract that puts an insurance policy into force before the premium has been paid.
An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

36. Sickness
An agreement between two or more parties enforceable by law.
Care that is rendered to help an insured complete his/her activities of daily living.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
A physical illness - disease - or pregnancy - but not a mental illness.

37. Short-Rate Cancellation
Canceling the policy with a less than proportionate return of premium.
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.
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
Insurance furnished by nongovernmental insuring organizations.

38. Notice of Claim

39. Accident
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
A unit of measure used to determine rates charged for insurance coverage.
A disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.

40. Whole Life Insurance

41. Nonqualified Pla
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A unit of measure used to determine rates charged for insurance coverage.
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.
Termination of a policy because the premium has not been paid by the end of the grace period.

42. Lloyd's Associations
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.
Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk.
A type of insurance that protects the insured against loss due to accidental bodily injury.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

43. Unilateral Contract
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
A contract that legally binds only one party to contractual obligations after the premium is paid.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.

44. Accumulation Period
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.

45. Co-Pay
The head of the state department of insurance.
An insurance company authorized and licensed to transact business in a particular state.
Insurance that pays over and above or in addition to basic policy limits.
An arrangement in which an insured must pay a specified amount for services "up front" and the provider pays the remainder of the cost.

46. Administrator
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 temporary contract that puts an insurance policy into force before the premium has been paid.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
The individual's age when a policy is issued.

47. Activities of Daily Living (ADLs)
The process of reviewing - accepting or rejecting applications for insurance.
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
The person who receives the proceeds from the policy when the insured dies.

48. Exclusions
The transfer of ownership rights of a life insurance policy from one person to another.
Causes of loss - exposures - conditions - etc. listed in the policy for which the benefits will not be paid.
A basic principle of insurance under which the risk of financial loss is assigned to another party.
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.

49. Presumptive Disability
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 booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
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 unit of measure used to determine rates charged for insurance coverage.

50. Omnibus Budget Reconciliation Act
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.
Disability from which the insured does not recover.
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
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.