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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. Joint Life
The amount of time an employee has to sign up for a contributory group health plan.
A single policy that is designed to insure two or more lives.
A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
The cause of a possible loss.

2. Parol
Legal term that distinguishes oral statements from written statements.
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
The person or organization that is protected by insurance; the party to be indemnified.
A selection of health care benefits from which an employee may choose the ones that he/she needs.

3. Beneficiary
The person who receives the proceeds from the policy when the insured dies.
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.
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.
An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee.

4. Fraternal Benefit Societies
Coverage that provides benefits for room - board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
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 table showing the incidence of sickness at specified ages.
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.

5. Personal Contract

6. Integrated LTC Rider

7. Pure Protection
The length of time over which the insurance benefits will be paid for each illness - disability or hospital stay.
Insurance whereby premiums are paid for protection in the event of death or disability - not for cash value accumulation.
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.
Those guaranteed values in a life insurance policy that cannot be taken from the insured - even if he or she ceases to pay premiums.

8. Rollover
A table showing the incidence of sickness at specified ages.
Withdrawing the money from a qualified plan and placing it into another qualified plan.
The individual's age when a policy is issued.
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.

9. Custodial Car
An act of giving up a life policy - in which the insurer will pay the insured the cash value the policy has built up.
Care that is rendered to help an insured complete his/her activities of daily living.
A physical illness - disease - or pregnancy - but not a mental illness.
A person making application for - or offering him/herself or another to be insured under an insurance contract.

10. Insurable Interest
A financial interest in the life of another person; a possibility of losing something of value if the insured should die. In life and health insurance - insurable interest must be stated at the time of policy issue.
Ability to perform some - but not all - of the duties of the insured's occupation as a result of injury or sickness.
A policy on which all premiums have been paid but which has not matured due either to death or endowment.
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

11. Consumer Reports

12. CSO Table (The Commissioner's Standard Ordinary Table)
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
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.
Health insurance policies that cover only specific accidents or diseases.
A mortality table used in life insurance that mathematically predicts the likelihood of death.

13. Cease and Desist Order
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 demand of a person to stop committing an action that is in violation of a provision.
A unit of measure used to determine rates charged for insurance coverage.
The act of signing an insurance policy by a licensed resident agent.

14. Medical Expense Insurance
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 disease that causes the victim to become dysfunctional due to degeneration of brain cells causing severe memory loss.
A type of insurance that pays benefits for medical - surgical - and hospital costs.
An entity certified by the insured's health plan that provides health care services under contract.

15. Issue Age

16. Fair Credit Reporting Act
Canceling the policy with a less than proportionate return of premium.
An unincorporated group of individuals who mutually insure one another - each separately assuming a share of each risk.
The head of the state department of insurance.
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.

17. Adjuster
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
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 physical condition that existed before the effective date of the policy - usually excluded from coverage.
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. Death Benefit
Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness.
The amount payable upon the death of the person whose life is insured.
A policy premium that remains the same over the period of time premiums are paid.
To reach the maturity date or time at which the face amount equals cash values.

19. 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 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.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
Special powers granted to an agent by his or her agency contract.

20. Domicile of Insurer

21. Flexible Premium
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
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.
An employer-funded account linked to a high deductible medical insurance plan.
A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits.

22. Credit Life Insurance
An insurance company that is incorporated outside the United States.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A request for payment of the benefits provided by an insurance contract.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

23. Accidental Bodily Injury
Time between the beginning of a disability and the start of disability insurance benefits.
A contract that pays a stated amount in the event of a loss (disability insurance/life insurance).
Unplanned - unforeseen traumatic injury to the body.
A selection of health care benefits from which an employee may choose the ones that he/she needs.

24. Application
An entity certified by the insured's health plan that provides health care services under contract.
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.
A document that provides information for underwriting purposes. After the policy is issued - any unanswered questions are considered waived by the insurer.
The process of reviewing - accepting or rejecting applications for insurance.

25. Coinsurance
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.
An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.
The date when the face amount of the life insurance becomes payable.
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.

26. Primary Policy
A practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
A basic - fundamental insurance policy which pays first with respect to other outstanding policies.
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

27. Liquidation
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 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).
Selling assets as a method of raising capital.
An agent/broker who handles insurer's funds in a trust capacity.

28. Tertiary Beneficiary
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the event of a loss.
Termination of an insurance policy - with an adjustment of the premium charge in proportion to the exact coverage that has been in force.
The third in line to receive the benefits of a life insurance policy.
Termination of a policy because the premium has not been paid by the end of the grace period.

29. Level Premium
A policy premium that remains the same over the period of time premiums are paid.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
An agent licensed in a state in which he or she is not a resident.
An injury or disease which occurs suddenly and requires treatment within 24 hours.

30. Adverse Selection
The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.
Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion.
A claim form that a claimant must submit after a loss occurs.
The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer.

31. Policyowner
The person who has possession of the policy - usually the insured.
The reduction - decrease - or disappearance of value of the person or property insured in a policy - by a peril insured against.
The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.
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.

32. Actual Charge
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.
Lessening the possibility or severity of a loss.
The amount a physician or supplier actually bills for a particular service or supply.
The date specified in the policy as the date of termination.

33. Underwriting
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.
The amount payable upon the death of the person whose life is insured.
A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy assigned as security for the loan to the policyowner.
The process of reviewing - accepting or rejecting applications for insurance.

34. Long-Term Disability Insurance
Activities individuals must do every day such as moving about - getting dressed - eating - bathing - etc.
An insurance company that conducts business in the state of incorporation.
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.
A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness.

35. Nonqualified Pla
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.
Insurance furnished by nongovernmental insuring organizations.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.
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.

36. Insurance
An area of dentistry that deals with diagnosis - prevention and treatment of the dental pulp within natural teeth at the root canal.
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.
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.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

37. Waiver of Cost
An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient.
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.
The cause of a possible loss.
A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

38. Major Medical Insurance
The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.
A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage.
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.
An employer-funded account linked to a high deductible medical insurance plan.

39. Broker
An individual who represents an insured in the process of purchasing and negotiating a contract of insurance.
The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
A physical condition that existed before the effective date of the policy - usually excluded from coverage.
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

40. Accumulation Period
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 act of identifying the name of the producer - representative or firm - limited insurance representative - or temporary insurance producer on any policy solicitation.
The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral.
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.

41. Director (Commissioner - Superintendent)
The time over which the annuitant makes paymenrs or investments in an annuity - and when those payments earn interest tax deferred.
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 person who evaluates and classifies risks to accept or reject them on behalf of the insurer.
The head of the state department of insurance.

42. Reduction
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.
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.
Lessening the possibility or severity of a loss.
A program for impaired adults that attempts to meet their health - social - and functional needs in a setting away from their homes.

43. Buyer's Guide
A booklet that describes insurance policies and concepts - and provides general information to help an applicant make an informed decision.
An insurance company authorized and licensed to transact business in a particular state.
The date specified in the policy as the date of termination.
The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.

44. Settlement Options
A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general.
The chief executive and administrative officer of a state insurance department.
A unit of measure used to determine rates charged for insurance coverage.
Choices available to the insured/owner for distribution of insurance proceeds.

45. Foreign Insurer
Insurance organizations that have no capital stock - but are owned by the policyholders.
An insurance company that is incorporated in another state.
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.
Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

46. Coordination of Benefits
A provision that helps determine the primary provider in situations where an insured is covered by more than one policy - thus avoiding claims overpayments.
A periodic payment to the insurance company to keep the policy in force.
A termination of a policy by an insurer on the anniversary or renewal date.
Uncertainty as to the outcome of an event when two or more possibilities exist.

47. Sickness
An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person.
An applicant or insured who is considered to have an average probability of a loss based on health - vocation and lifestyle.
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.
A physical illness - disease - or pregnancy - but not a mental illness.

48. Sharing
A person making application for - or offering him/herself or another to be insured under an insurance contract.
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.
The portion of premium for which policy protection has not yet been given.
A demand of a person to stop committing an action that is in violation of a provision.

49. Whole Life Insurance

50. Convertible
The full face value of a policy.
A request for payment of the benefits provided by an insurance contract.
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).
Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness.