LIFE, ACCIDENT AND HEALTH EXAM
QUESTIONS ACCURATE CORRECT
ANSWERS
Annuity - CORRECT ANSWER -A contract between a person and an insurance
company that requires the insurer to make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree
Dividends - CORRECT ANSWER -Declared by the board of directors and cannot be
guaranteed
-A sum of money paid regularly by a company to its shareholders out of its profits
Stock Insurers - CORRECT ANSWER -Owned by the stockholders who elect the board
of directors.
-Profits are paid to the stockholders.
Frequency - CORRECT ANSWER -When the pricing principle is defined in a disability
policy by a financial loss in a certain group occuring over a certain period of time.
Beneficiary - CORRECT ANSWER One who receives benefits
Medi-Cal - CORRECT ANSWER health care program for the poor
Medicare - CORRECT ANSWER A - provides coverage for hospital services, free to
those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs
Utmost Good Faith - CORRECT ANSWER -Allows each party to rely on the
representation made by other party
Patient Protection & Affordable Care Act (PPACA) - CORRECT ANSWER This is the
health care reform law. Focuses on reform of the private health insurance market;
providing better coverage for those with pre-existing conditions; improving prescription
drug coverage in Medicare.
Period - CORRECT ANSWER Probationary-
Elimination- the waiting period included in disability income policies
Grace-
, Waiting (deductible)- The period of time the insured is not eligible for benefits once they
become disabled (30, 60, 90days)
Coinsurance - CORRECT ANSWER -Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10
Gatekeeper - CORRECT ANSWER -Primary Care Physician
-Cannot be a specialist, must be a general practice doctor.
COBRA - CORRECT ANSWER -Consolidated Omnibus Budget Reconciliation Act
-A law that allows people who leave employment to continue their health insurance
under the company plan for a limited period of time
HIPCAP - CORRECT ANSWER -Free counseling
Coordination of Benefits - CORRECT ANSWER -Provision that applies in group
insurance when an insured has coverage under multiple plans at one time.
-Coordination of benefits is included in all group health insurance policies in order to
reinforce the principle of indemnity and determine which coverage is primary, which is
the coverage the insured has where they work.
Keogh plan - CORRECT ANSWER -A retirement plan for the self-employed
The Social Security Blackout - CORRECT ANSWER -Period of time when surviving
family members are NOT eligible for Social Security survivors benefits
-Begins at 16
-Ends at 60
Premium - CORRECT ANSWER -The amount the insured pays the insurer for the
coverage provided.
Solvent Insurer - CORRECT ANSWER Has enough reserves to pay for all its liabilities
Types of Life Policy Riders: - CORRECT ANSWER -Waiver of Premium- Waives the
insured's premium if the insured becomes disabled
-Disability Income- Pays a replacement of the insured's lost income if the become
disabled.
-Accidental Death Benefit- Pays double the face amount if the insured dies in an
accident, and is also known as double indemnity.
QUESTIONS ACCURATE CORRECT
ANSWERS
Annuity - CORRECT ANSWER -A contract between a person and an insurance
company that requires the insurer to make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree
Dividends - CORRECT ANSWER -Declared by the board of directors and cannot be
guaranteed
-A sum of money paid regularly by a company to its shareholders out of its profits
Stock Insurers - CORRECT ANSWER -Owned by the stockholders who elect the board
of directors.
-Profits are paid to the stockholders.
Frequency - CORRECT ANSWER -When the pricing principle is defined in a disability
policy by a financial loss in a certain group occuring over a certain period of time.
Beneficiary - CORRECT ANSWER One who receives benefits
Medi-Cal - CORRECT ANSWER health care program for the poor
Medicare - CORRECT ANSWER A - provides coverage for hospital services, free to
those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs
Utmost Good Faith - CORRECT ANSWER -Allows each party to rely on the
representation made by other party
Patient Protection & Affordable Care Act (PPACA) - CORRECT ANSWER This is the
health care reform law. Focuses on reform of the private health insurance market;
providing better coverage for those with pre-existing conditions; improving prescription
drug coverage in Medicare.
Period - CORRECT ANSWER Probationary-
Elimination- the waiting period included in disability income policies
Grace-
, Waiting (deductible)- The period of time the insured is not eligible for benefits once they
become disabled (30, 60, 90days)
Coinsurance - CORRECT ANSWER -Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10
Gatekeeper - CORRECT ANSWER -Primary Care Physician
-Cannot be a specialist, must be a general practice doctor.
COBRA - CORRECT ANSWER -Consolidated Omnibus Budget Reconciliation Act
-A law that allows people who leave employment to continue their health insurance
under the company plan for a limited period of time
HIPCAP - CORRECT ANSWER -Free counseling
Coordination of Benefits - CORRECT ANSWER -Provision that applies in group
insurance when an insured has coverage under multiple plans at one time.
-Coordination of benefits is included in all group health insurance policies in order to
reinforce the principle of indemnity and determine which coverage is primary, which is
the coverage the insured has where they work.
Keogh plan - CORRECT ANSWER -A retirement plan for the self-employed
The Social Security Blackout - CORRECT ANSWER -Period of time when surviving
family members are NOT eligible for Social Security survivors benefits
-Begins at 16
-Ends at 60
Premium - CORRECT ANSWER -The amount the insured pays the insurer for the
coverage provided.
Solvent Insurer - CORRECT ANSWER Has enough reserves to pay for all its liabilities
Types of Life Policy Riders: - CORRECT ANSWER -Waiver of Premium- Waives the
insured's premium if the insured becomes disabled
-Disability Income- Pays a replacement of the insured's lost income if the become
disabled.
-Accidental Death Benefit- Pays double the face amount if the insured dies in an
accident, and is also known as double indemnity.
