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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. Free Look
A contract that provides income for a specified period of years - or for life.
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 acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
A request for payment of the benefits provided by an insurance contract.

2. Insurability

3. Risk - Pure
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
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.

4. Home Health Care
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 conducts business in the state of incorporation.
Lessening the possibility or severity of a loss.
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.

5. Coverage
The inclusion of causes of loss (perils) which are covered within a scope of a policy.
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
The amount payable upon the death of the person whose life is insured.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.

6. Physical Exam and Autopsy
A retirement plan that meets the IRS guidelines for receiving favorable tax treatment.
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.
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.
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.

7. Long-Term Care (LTC)
A policy that provides benefits for all medical costs - including doctor visits - hospitalization - and drugs.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
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 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).

8. Buy-Sell Agreement
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 legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
A medical benefits program jointly administered by the individual states and the federal government.
An agent licensed in a state in which he or she is not a resident.

9. Certificate
A contract that provides income for a specified period of years - or for life.
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 statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The head of the state department of insurance.

10. Adjustable Life
Requirements approved by state law that must appear in all insurance policies.
Life insurance which permits changes in the face amount - premium amount - period of protection - and the duration of the premium payment period.
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses.
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.

11. Mode of Payment
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 provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.
A statement usually obtained from the applicant's doctor.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.

12. Loss of Income Insurance
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level - guaranteed death benefit.
An insurance classification for applicants who have a lower expectation of incurring loss - and who - therefore - are covered at a reduced rate.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.

13. Insurance
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.
Similar to consumer reports in that they also provide information on the consumer's character - reputation - and habits.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another 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.

14. Back-End Load
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time - lump sum payment.
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 condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.
A fee charged at the time of a sale - transfer or withdrawal from an annuity or a life insurance policy.

15. Tertiary Beneficiary
The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
The third in line to receive the benefits of a life insurance policy.
An unplanned - unforeseen event which occurs suddenly and at an unspecified place.
Uncertainty as to the outcome of an event when two or more possibilities exist.

16. Rebating
A selection of health care benefits from which an employee may choose the ones that he/she needs.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
A person who relies on another for support and maintenance.
Any inducement offered in the sale of insurance products that is not specified in the policy.

17. Noncancelable
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.
The difference between the Medicare approved amount for a service or supply and the actual charge.
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 type of insurance that protects the insured against loss due to accidental bodily injury.

18. Conditional Contract
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 type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
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 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).

19. Hospital Confinement Rider
Insurer's location of incorporation and the legal ability to write business in a state.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
An insurance company authorized and licensed to transact business in a particular state.

20. Capital Amount
Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare.
A legal impediment to denying a fact or restoring a right that has been previously waived.
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 percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

21. Prosthodontics
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
The individual's age when a policy is issued.
A false statement or lie that can render the contract void.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.

22. Annuity
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The head of the state department of insurance.
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 contract that provides income for a specified period of years - or for life.

23. Cease and Desist Order
A demand of a person to stop committing an action that is in violation of a provision.
An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns.
A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.
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.

24. Unilateral Contract
A contract that legally binds only one party to contractual obligations after the premium is paid.
A physical illness - disease - or pregnancy - but not a mental illness.
A fee or commission charged at the time of purchase of an annuity or a security.
An agent/broker who handles insurer's funds in a trust capacity.

25. Policyholder
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
The person who has possession of the policy - usually the insured.
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.
A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.

26. Underwriter
Benefits required by state law to be paid to an employee by an employer in the case of injury - disability - or death as the result of an on-the-job hazard.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
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.

27. Major Medical Insurance
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.
The payment made by insurers to agents or brokers for the sale and service of policies.
Termination of a policy because the premium has not been paid by the end of the grace 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'

28. Group Life
Life insurance provided for members of a group.
A type of insurance that protects the insured against loss due to accidental bodily injury.
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.
The chief executive and administrative officer of a state insurance department.

29. Comprehensive Major Medical
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
A type of insurance that pays benefits for medical - surgical - and hospital costs.
A combination of basic coverage and major medical coverage that features low deductibles - high maximum benefits - and coinsurance.
A special area of dentistry that involves the replacement of missing teeth with artificial devices like bridgework or dentures.

30. Accidental Death Benefits
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.
Coverage for doctor visits - x-rays - lab tests - and emergency room visits; benefits - however - are limited to specified dollar amounts.
The person or organization that is protected by insurance; the party to be indemnified.
The voluntary abandonment of a known or legal right or advantage.

31. Pre-Existing Condition
The effect a person's indifference concerning loss has on the risk to be insured.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
The amount of time an employee has to sign up for a contributory group health plan.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.

32. Spendthrift Clause
A demand of a person to stop committing an action that is in violation of a provision.
A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them.
Special powers granted to an agent by his or her agency contract.
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. Recurrent Disability
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 policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability.
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.
A single policy that is designed to insure two or more lives.

34. Attending Physician's Statement (APS)

35. Payor Benefit
A termination of a policy by an insurer on the anniversary or renewal date.
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 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.
The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer.

36. Misrepresentation
A false statement or lie that can render the contract void.
An insurance company that conducts business in the state of incorporation.
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
The difference between the Medicare approved amount for a service or supply and the actual charge.

37. Preferred Provider Organization (PPO)

38. Agent
An individual who is licensed to sell - negotiate - or effect insurance contracts on behalf of an insurer.
The method of premium payment - whether annually - semiannually - quarterly - or monthly.
A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
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.

39. Private Insurance
Insurance furnished by nongovernmental insuring organizations.
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The effect of a person's reputation - character - living habits - etc. on his/her insurability.
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.

40. Contributory
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
The age of the insured at a determined date.
Average number of years remaining for a person of a given age to live - as shown on the mortality table.
A group insurance plan that requires the employees to pay part of the premium.

41. Rider
Benefits required by state law to be paid to an employee by an employer in the case of injury - disability - or death as the result of an on-the-job hazard.
Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses.
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
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.

42. Explanation of Benefits (EOB)
A statement that outlines what services were rendered - how much the insurer paid - and how much the insured was billed.
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.
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.
Uncertainty as to the outcome of an event when two or more possibilities exist.

43. Endow
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.
The third in line to receive the benefits of a life insurance policy.
To reach the maturity date or time at which the face amount equals cash values.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.

44. Medicare Supplement Insurance
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
The required amount to pay damages or for property loss - which is calculated based on the property's current replacement value minus depreciation.
A type of individual or group insurance that fills the gaps in the protection provided by Medicare - but that cannot duplicate any Medicare benefits.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.

45. Admitted (Authorized) Insurer
A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
A request for payment of the benefits provided by an insurance contract.
An insurance company authorized and licensed to transact business in a particular state.

46. Standard Provisions
Additional - miscellaneous services provided by a hospital - such as x-rays - anesthesia - and lab work - but not hospital room and board expenses.
Requirements approved by state law that must appear in all insurance policies.
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 form changing the provisions of and attached to a life insurance policy (also known as a rider).

47. Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986

48. Presumptive Disability
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
Operative treatment of the mouth such as extractions of teeth and related surgical treatment.
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 provision that is found in most disability income policies which specifies the conditions that will automatically qualify the insured for full disability benefits.

49. Proceeds

50. Comprehensive Policy
A legal document that indicates that an insurance policy has been issued - and that states both the amounts and types of insurance provided.
A plan that provides a package of health care services - including preventive care - routine physicals - immunization - outpatient services and hospitalization.
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
To restore the insured to the same condition as prior to loss with no intent of loss or gain.