NYS LIFE HEALTH INSURANCE STUDY EXAMS
GUIDE QUESTIONS AND ANSWERS SURE A+
✔✔Loan Value - ✔✔The amount of money an insured can borrow using the cash value
of his/her life insurance policy as collateral.
✔✔Loss - ✔✔The reduction, decrease, or disappearance of value of the person or
property insured in a policy, by a peril insured against.
✔✔Lump Sum - ✔✔Settlement method that pays the beneficiary the entire proceeds of
a life insurance policy in one payment rather than in installments.
✔✔Market Value Adjusted Annuity - ✔✔- a single-premium deferred annuity that allows
contract owner to lock in a guaranteed interest rate over a specified maturity period.
✔✔Maturity Date - ✔✔The date when the face amount of the life insurance becomes
payable.
✔✔Medical Information Bureau (MIB - ✔✔- An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
✔✔Misrepresentation - ✔✔A false statement or lie that can render the contract void.
✔✔Mode of Payment - ✔✔- The method of premium payment, whether annually,
semiannually, quarterly, or monthly.
✔✔Morbidity Rate - ✔✔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.
✔✔Morbidity Table - ✔✔A table showing the incidence of sickness at specified ages.
✔✔Mortality Table - - ✔✔A table showing the probability of death at specified ages.
, ✔✔Mutual Companies - ✔✔Insurance organizations that have no capital stock, but are
owned by the policyholders.
✔✔Natural Premium - ✔✔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.
✔✔Nonadmitted (Nonauthorized) - ✔✔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.
✔✔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.
✔✔Noncancelable - ✔✔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.
✔✔Nonforfeiture Values - ✔✔Those guaranteed values in a life insurance policy that
cannot be taken from the insured, even if he or she ceases to pay premiums.
✔✔Nonmedical - ✔✔A life or health insurance policy that is underwritten based on the
insured's statement of health rather than a medical examination.
✔✔Non-participating Policies (Non-par) - ✔✔- Insurance that does not pay dividends.
✔✔Nonqualified Plan - ✔✔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.
✔✔Nonrenewal - ✔✔A termination of a policy by an insurer on the anniversary or
renewal date.
✔✔Nonresident Agent - ✔✔An agent licensed in a state in which he or she is not a
resident.
✔✔Option - ✔✔- A choice of ways of receiving policy dividends, nonforfeiture values,
death benefits, or cash values.
✔✔Over Insurance - ✔✔An excessive amount of insurance that would result in
overpayment to the insured in the event of a loss.
✔✔Paid-Up Insurance - ✔✔A policy on which all premiums have been paid but which
has not matured due either to death or endowment.
GUIDE QUESTIONS AND ANSWERS SURE A+
✔✔Loan Value - ✔✔The amount of money an insured can borrow using the cash value
of his/her life insurance policy as collateral.
✔✔Loss - ✔✔The reduction, decrease, or disappearance of value of the person or
property insured in a policy, by a peril insured against.
✔✔Lump Sum - ✔✔Settlement method that pays the beneficiary the entire proceeds of
a life insurance policy in one payment rather than in installments.
✔✔Market Value Adjusted Annuity - ✔✔- a single-premium deferred annuity that allows
contract owner to lock in a guaranteed interest rate over a specified maturity period.
✔✔Maturity Date - ✔✔The date when the face amount of the life insurance becomes
payable.
✔✔Medical Information Bureau (MIB - ✔✔- An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
✔✔Misrepresentation - ✔✔A false statement or lie that can render the contract void.
✔✔Mode of Payment - ✔✔- The method of premium payment, whether annually,
semiannually, quarterly, or monthly.
✔✔Morbidity Rate - ✔✔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.
✔✔Morbidity Table - ✔✔A table showing the incidence of sickness at specified ages.
✔✔Mortality Table - - ✔✔A table showing the probability of death at specified ages.
, ✔✔Mutual Companies - ✔✔Insurance organizations that have no capital stock, but are
owned by the policyholders.
✔✔Natural Premium - ✔✔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.
✔✔Nonadmitted (Nonauthorized) - ✔✔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.
✔✔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.
✔✔Noncancelable - ✔✔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.
✔✔Nonforfeiture Values - ✔✔Those guaranteed values in a life insurance policy that
cannot be taken from the insured, even if he or she ceases to pay premiums.
✔✔Nonmedical - ✔✔A life or health insurance policy that is underwritten based on the
insured's statement of health rather than a medical examination.
✔✔Non-participating Policies (Non-par) - ✔✔- Insurance that does not pay dividends.
✔✔Nonqualified Plan - ✔✔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.
✔✔Nonrenewal - ✔✔A termination of a policy by an insurer on the anniversary or
renewal date.
✔✔Nonresident Agent - ✔✔An agent licensed in a state in which he or she is not a
resident.
✔✔Option - ✔✔- A choice of ways of receiving policy dividends, nonforfeiture values,
death benefits, or cash values.
✔✔Over Insurance - ✔✔An excessive amount of insurance that would result in
overpayment to the insured in the event of a loss.
✔✔Paid-Up Insurance - ✔✔A policy on which all premiums have been paid but which
has not matured due either to death or endowment.
