Life Accident and Health Exam Ohio| 50 Questions| Correct Answers aunthentic(RATED A+)

Accidental Death Insurance - ANSWER A form of Health Insurance that provides payment if death of the insured results from an accident. Is often combined with dismemberment insurance Accumulation at Interest Option - ANSWER A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income. Aleatory Contract - ANSWER A contract in which both parties know that one or the other may receive more than paid in. Automatic Premium Loan - ANSWER A provision in a Life policy authorizing the insurance company to use the loan value to pay premiums not paid by the end of the grace period. Never present in term life policies Blanket Insurance Contract - ANSWER A contract of Health Insurance that covers all of a class of persons not individually identified. No certificates are issued and people covered may not even know What forms of Insurance are non-cancel-able? - ANSWER Life Insurance Health policies designated as guaranteed renewable, non-cancel-able, and guaranteed renewable. Cash Dividend Option - ANSWER A dividend option under which the policy owner of a mutual contract receives the dividends in cash. Not subject to tax. Co-insurance - ANSWER In Health Insurance, a provision that that insured and insurance company will share covered losses in agreed proportions. Common Disaster Provision - ANSWER A provision that can be included in a Life contract that provides that the primary beneficiary must outlive the insured by a specified period of time in order to receive the proceeds. Comprehensive Health or Major Medical Insurance - ANSWER A form of Health insurance that combines the coverage of Major medical and Basic Medical Expense contracts into one broad contract that provides coverage for almost all types of medical expense with few limits. Controlled Business - ANSWER Life Insurance coverage written on the agent's life and on the lives of such persons as the agent's relatives and business associates. Corridor Deductible - ANSWER A deductible used only in Comprehensive Major Medical that applies between benefits paid by the basic plan and the start of the major medical plan. Deferred Annuity - ANSWER An Annuity on which payments to the annuitant are delayed until a specific date in the future. Double Indemnity - ANSWER Payment of twice the basic benefit in the event of loss resulting from specified cause of under specified circumstances. Embedded Deductible - ANSWER Will only cover a family member in high deductible health insurance plans when personal deductibles have already been met. Employer Mandate - ANSWER A requirement that a business that employs 50 or more people and do not offer health insurance will pay a taxable penalty. Essential Health Benefits (EHB) - ANSWER The minimum coverage requirements for health insurance under the ACA. The qualified plans must be guarantee issue with no pre-existing conditions and no lifetime benefit max. Extended Term Option - ANSWER A life insurance non-forfeiture option under which the insured uses the policy's cash value accumulation to purchase single-premium term insurance in an amount equal to the original face amount. Guaranty Association - ANSWER A state association that takes control of an insolvent insurance company and provides funds to pay for claims that the company is unable to pay. Guaranteed Insurablility - ANSWER A rider in life and health insurance contracts that permits the insured to buy additional insurance without evidence of insurability. Health Insurance Corporation (HIC) - ANSWER An organization of health providers; this is the Ohio term for HMO. Each member pays a premium for which he receives medical care when desired. The emphasis is on preventive care. High Deductible Health Insurance Plan (HDHP) - ANSWER A required type of high deductible plan for employers who want to provide a Health Savings account to their employee. Health Savings Account - ANSWER An account established by an employer for employees. Both parties make pre-tax contributions that will cover certain qualified medical expenses and other allowable expenses. Individual Mandate - ANSWER The requirement that all individuals with a few exceptions are covered by an approved health plan containing at least the essential health benefits provided by the ACA. Indemnify - ANSWER To restore the victim of a loss, in whole or in part, by payment, repair, or replacement. Interest Option - ANSWER A settlement option under which the insurer keeps the insurance proceeds and invests them on behalf of the beneficiary. The beneficiary