Georgia Life and Health Insurance Test
With Complete Solutions
Accident CORRECT ANSWERS An unplanned unforseen event which occurs suddenly at an unspecified place
Accident insurance CORRECT ANSWERS A type of insurance that protects the insured
against loss due to an accidental bodily injury
Accidental bodily injury CORRECT ANSWERS Unplanned unforseen traumatic injury to
the body
Accidental Death and Dismemberment CORRECT ANSWERS An insurance policy which pays a specified number or specified multiple of the insurer's benefit if the insured
dies, loses his/her sight, or loses two limbs due to an accident.
Acquired Immunodeficiency Symdrome CORRECT ANSWERS An infectious and incurable disease caused by the human immunodeficiency virus (hiv)
Activities of daily living CORRECT ANSWERS Activities individuals must do every day such as moving about, getting dressed, eating, bathing, etc.
Actual charge CORRECT ANSWERS The amount a physician or supplier actually bills for a particular service or supply.
Adhesion CORRECT ANSWERS A contract offered on a "take it or leave it" basis by an
insured, 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 imsured.
Admitted (Authorized) Insurer CORRECT ANSWERS An insurance company authorized and licensed to transact business in a particular state.
Adult Day Care CORRECT ANSWERS A program for impaired adults that attempts to meet their health, social, and functional needs in a setting away from their homes.
Adverse Selection CORRECT ANSWERS The tendency of risks witha higher probability
of loss to purchase and maintain insurance more often than the risks who present lower probability
Agent CORRECT ANSWERS An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Aleatory CORRECT ANSWERS 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 ANSWERS An insurance company that is incorporated outside
the United States.
Alzheimer's Disease CORRECT ANSWERS A disease that causes the victim to become dysfunctional due to degeneration of brain cells and severe memory loss.
Ancillary CORRECT ANSWERS Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and lab work, but not hospital room and board expenses.
Apparent Authority CORRECT ANSWERS The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Approved Amount CORRECT ANSWERS The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Assignment CORRECT ANSWERS A claim to a provider or medical supplier to receive payments directly from Medicare.
Attained Age CORRECT ANSWERS The age of the insured at a determined date.
Attending Physician Statement (APS) CORRECT ANSWERS A statement usually obtained from the applicant's doctor.
Avoidance CORRECT ANSWERS A method of dealing with risk (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).
Basic Hospital Expense Insurance CORRECT ANSWERS Coverage that provides benefits for room, board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
Basic Medical Expense Insurance CORRECT ANSWERS Coverage for doctor visits, x-
rays, lab tests, and emergency room visits; benefits, however, are limited to specified dollar amounts.
Beneficiary CORRECT ANSWERS The person who receives the proceeds from the policy when the insured dies.
Benefit Period CORRECT ANSWERS The length of time over which the insurance benefits will be paid for each illness, disability, or hospital stay Birthday Rule CORRECT ANSWERS 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.
Boycott CORRECT ANSWERS An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain comditioms.
Blanket Medical Insurance CORRECT ANSWERS A policy that provides benefits for all medical costs, including doctor visits, hospitalization, and drugs.
Buyers Guide CORRECT ANSWERS A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision.
Cafeteria Plan CORRECT ANSWERS A selection of health care benefits from which an employee may choose the ones that he/she needs.
Capital Amount CORRECT ANSWERS A percentage of the principal amount of a policy
paid to the insured if he/she suffered the loss of an appendage.
Carriers CORRECT ANSWERS Organizations that process claims and pay benefits in an insurance policy
Cease and Desist Order CORRECT ANSWERS A demand of a person to stop committing an action that is in violation of a provision.
Certificate Authority CORRECT ANSWERS 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.
Certificate of Insurance CORRECT ANSWERS A written document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided.
Claim CORRECT ANSWERS A request for payment of the benefits provided by an insurance contract.
Coercion CORRECT ANSWERS An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Coinsurance CORRECT ANSWERS 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.
With Complete Solutions
Accident CORRECT ANSWERS An unplanned unforseen event which occurs suddenly at an unspecified place
Accident insurance CORRECT ANSWERS A type of insurance that protects the insured
against loss due to an accidental bodily injury
Accidental bodily injury CORRECT ANSWERS Unplanned unforseen traumatic injury to
the body
Accidental Death and Dismemberment CORRECT ANSWERS An insurance policy which pays a specified number or specified multiple of the insurer's benefit if the insured
dies, loses his/her sight, or loses two limbs due to an accident.
Acquired Immunodeficiency Symdrome CORRECT ANSWERS An infectious and incurable disease caused by the human immunodeficiency virus (hiv)
Activities of daily living CORRECT ANSWERS Activities individuals must do every day such as moving about, getting dressed, eating, bathing, etc.
Actual charge CORRECT ANSWERS The amount a physician or supplier actually bills for a particular service or supply.
Adhesion CORRECT ANSWERS A contract offered on a "take it or leave it" basis by an
insured, 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 imsured.
Admitted (Authorized) Insurer CORRECT ANSWERS An insurance company authorized and licensed to transact business in a particular state.
Adult Day Care CORRECT ANSWERS A program for impaired adults that attempts to meet their health, social, and functional needs in a setting away from their homes.
Adverse Selection CORRECT ANSWERS The tendency of risks witha higher probability
of loss to purchase and maintain insurance more often than the risks who present lower probability
Agent CORRECT ANSWERS An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Aleatory CORRECT ANSWERS 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 ANSWERS An insurance company that is incorporated outside
the United States.
Alzheimer's Disease CORRECT ANSWERS A disease that causes the victim to become dysfunctional due to degeneration of brain cells and severe memory loss.
Ancillary CORRECT ANSWERS Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and lab work, but not hospital room and board expenses.
Apparent Authority CORRECT ANSWERS The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
Approved Amount CORRECT ANSWERS The amount Medicare determines to be reasonable for a service that is covered under part B of Medicare.
Assignment CORRECT ANSWERS A claim to a provider or medical supplier to receive payments directly from Medicare.
Attained Age CORRECT ANSWERS The age of the insured at a determined date.
Attending Physician Statement (APS) CORRECT ANSWERS A statement usually obtained from the applicant's doctor.
Avoidance CORRECT ANSWERS A method of dealing with risk (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).
Basic Hospital Expense Insurance CORRECT ANSWERS Coverage that provides benefits for room, board and miscellaneous hospital expenses for a certain number of days during a hospital stay.
Basic Medical Expense Insurance CORRECT ANSWERS Coverage for doctor visits, x-
rays, lab tests, and emergency room visits; benefits, however, are limited to specified dollar amounts.
Beneficiary CORRECT ANSWERS The person who receives the proceeds from the policy when the insured dies.
Benefit Period CORRECT ANSWERS The length of time over which the insurance benefits will be paid for each illness, disability, or hospital stay Birthday Rule CORRECT ANSWERS 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.
Boycott CORRECT ANSWERS An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain comditioms.
Blanket Medical Insurance CORRECT ANSWERS A policy that provides benefits for all medical costs, including doctor visits, hospitalization, and drugs.
Buyers Guide CORRECT ANSWERS A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision.
Cafeteria Plan CORRECT ANSWERS A selection of health care benefits from which an employee may choose the ones that he/she needs.
Capital Amount CORRECT ANSWERS A percentage of the principal amount of a policy
paid to the insured if he/she suffered the loss of an appendage.
Carriers CORRECT ANSWERS Organizations that process claims and pay benefits in an insurance policy
Cease and Desist Order CORRECT ANSWERS A demand of a person to stop committing an action that is in violation of a provision.
Certificate Authority CORRECT ANSWERS 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.
Certificate of Insurance CORRECT ANSWERS A written document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided.
Claim CORRECT ANSWERS A request for payment of the benefits provided by an insurance contract.
Coercion CORRECT ANSWERS An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Coinsurance CORRECT ANSWERS 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.
