ILLINOIS LIFE AND HEALTH INSURANCE
EXAM 2026 COMPLETE PRACTICE
QUESTIONS, VERIFIED CORRECT
ANSWERS AND COMPREHENSIVE
INSURANCE LICENSING STUDY GUIDE
same over the period of time premiums are paid
life expectancy - CORRECT ANSWER -average number of years remaining
for a person of a given age to live, as shown on the mortality table
Accelerated Benefits - CORRECT ANSWER -Riders attached to life insurance
policies that allow death benefits to be used to cover nursing or
convalescent home expenses
Accidental death benefits - CORRECT ANSWER -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
accidental death insurance - CORRECT ANSWER -an insurance policy that
provides payment if the insureds death is the result of an accident
accumulation period - CORRECT ANSWER -the time before an annuitants
retirement during which the annuitant is making payments or investments
in the annuity
,actual cash value (acv) - CORRECT ANSWER -the required amount to pay
damages or for property loss. This amount is calculated based on the
properties current replacement value minus depreciation
adhesion - CORRECT ANSWER -a contract offered on a take it or leave it
basis by an insurer, in which the insureds only option is to either accept or
reject the contract. Any ambiguities in the contract will be settled in favor of
the insured
adjustable life - CORRECT ANSWER -life insurance that permits changes in
the face amount, premium amount, period of protection, and the duration
of the premium payment period
adjuster - CORRECT ANSWER -a representative of an insurance company
who investigates and acts not he behalf of the company to obtain
agreements for the amount of the insurance claim
administrator - CORRECT ANSWER -an individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased person
admitted (authorized) insurer - CORRECT ANSWER -an insurance company
authorized and licensed to transact business in a particular state
adverse selection - CORRECT ANSWER -the tendency of risks with higher
probability of loss to purchase and maintain insurance more often than the
risks who present lower probability
, agency - CORRECT ANSWER -an insurance sales office or company
agent - CORRECT ANSWER -an individual who is licensed to sell, negotiate,
or effect insurance contracts on behalf of the insurer
agent appointment - CORRECT ANSWER -the authorization of an agent to
act for or represent and insurer
agents authority - CORRECT ANSWER -special powers granted to an agent
by his or her agency contract
aleatory - CORRECT ANSWER -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
alien insurer - CORRECT ANSWER -an insurance company that is
incorporated outside the united states
annual statement - CORRECT ANSWER -a detailed financial report that an
insurance company must submit every year to the insurance department of
states in which it conducts business
annuity - CORRECT ANSWER -a contract that provides income for a
specified period of years or life
EXAM 2026 COMPLETE PRACTICE
QUESTIONS, VERIFIED CORRECT
ANSWERS AND COMPREHENSIVE
INSURANCE LICENSING STUDY GUIDE
same over the period of time premiums are paid
life expectancy - CORRECT ANSWER -average number of years remaining
for a person of a given age to live, as shown on the mortality table
Accelerated Benefits - CORRECT ANSWER -Riders attached to life insurance
policies that allow death benefits to be used to cover nursing or
convalescent home expenses
Accidental death benefits - CORRECT ANSWER -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
accidental death insurance - CORRECT ANSWER -an insurance policy that
provides payment if the insureds death is the result of an accident
accumulation period - CORRECT ANSWER -the time before an annuitants
retirement during which the annuitant is making payments or investments
in the annuity
,actual cash value (acv) - CORRECT ANSWER -the required amount to pay
damages or for property loss. This amount is calculated based on the
properties current replacement value minus depreciation
adhesion - CORRECT ANSWER -a contract offered on a take it or leave it
basis by an insurer, in which the insureds only option is to either accept or
reject the contract. Any ambiguities in the contract will be settled in favor of
the insured
adjustable life - CORRECT ANSWER -life insurance that permits changes in
the face amount, premium amount, period of protection, and the duration
of the premium payment period
adjuster - CORRECT ANSWER -a representative of an insurance company
who investigates and acts not he behalf of the company to obtain
agreements for the amount of the insurance claim
administrator - CORRECT ANSWER -an individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased person
admitted (authorized) insurer - CORRECT ANSWER -an insurance company
authorized and licensed to transact business in a particular state
adverse selection - CORRECT ANSWER -the tendency of risks with higher
probability of loss to purchase and maintain insurance more often than the
risks who present lower probability
, agency - CORRECT ANSWER -an insurance sales office or company
agent - CORRECT ANSWER -an individual who is licensed to sell, negotiate,
or effect insurance contracts on behalf of the insurer
agent appointment - CORRECT ANSWER -the authorization of an agent to
act for or represent and insurer
agents authority - CORRECT ANSWER -special powers granted to an agent
by his or her agency contract
aleatory - CORRECT ANSWER -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
alien insurer - CORRECT ANSWER -an insurance company that is
incorporated outside the united states
annual statement - CORRECT ANSWER -a detailed financial report that an
insurance company must submit every year to the insurance department of
states in which it conducts business
annuity - CORRECT ANSWER -a contract that provides income for a
specified period of years or life
