Illinois Life & Health Insurance Review Questions with Complete Solutions (Graded A+)

Illinois Life & Health Insurance Review Questions with Complete Solutions (Graded A+) Accelerated Benefits - Answers Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses Accidental death benefits - Answers 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 - Answers an insurance policy that provides payment if the insureds death is the result of an accident accumulation period - Answers the time before an annuitants retirement during which the annuitant is making payments or investments in the annuity actual cash value (acv) - Answers the required amount to pay damages or for property loss. This amount is calculated based on the properties current replacement value minus depreciation adhesion - Answers 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 - Answers life insurance that permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period adjuster - Answers 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 - Answers an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person admitted (authorized) insurer - Answers an insurance company authorized and licensed to transact business in a particular state adverse selection - Answers the tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability agency - Answers an insurance sales office or company agent - Answers an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the insurer agent appointment - Answers the authorization of an agent to act for or represent and insurer agents authority - Answers special powers granted to an agent by his or her agency contract aleatory - 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 - Answers an insurance company that is incorporated outside the united states annual statement - Answers a detailed financial report that an insurance company must submit every year to the insurance department of states in which it conducts business annuity - Answers a contract that provides income for a specified period of years or life apparent authority - 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 applicant - Answers a person making application for, or offering himself, herself or another to be insured under an insurance contract application - Answers a document that provides information for underwriting purposes. after the policy is issued, any unanswered questions are considered waived by the insurer assignment - Answers the transfer of ownership rights of a life insurance policy from one person to another attained age - Answers the age of the insured at a determined date attending physicians statement (aps) - Answers a statement usually obtained from the applicants doctor authorized (admitted) insurer - Answers an insurance company authorized and licensed to transact business in a particular state avoidance - Answers a method of dealing with risk by deliberately keeping away form it (ex. if a person wanted to avoid the risk of being killed in an airplane crash, he or she might choose to never fly in a plane) basic illustration - Answers a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguarenteed elements beneficiary - Answers the person who receives the proceeds from the policy when the insured dies birthday rule - 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 broker - Answers an individual who represents an insured in the process of purchasing and negotiating a contract of insurance buy sell agreement - Answers a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled buyers guide - Answers a booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision cash value - Answers the amount to which a policy owner is entitled if the policy is surrendered before maturity certificate - Answers a statement or booklet that confirms that a policy has been written and that describes the coverage in general certificate of authority - Answers a document that authorizes a company to start conducting business and specifies the kinds of insurance a company can transact. it is illegal for an insurance company to transact insurance without this certificate certificate of insurance - Answers a legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided claim - Answers a request for payment of the benefits provided by an insurance contract coercion - Answers an unfair trade practice in which an agent uses physical or mental force with the intent of inducing an applicant to purchase insurance coinsurance clause - Answers a provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance commingling - Answers a practice in which person in a fiduciary capacity illegally miss his/her personal funds with funds he/she is holding in trust commission - Answers the payment made by insurers to agents or brokers for the sale and service of policies commissioner - Answers the chief executive and administrative officer of a state insurance department (in some states, known as director or superintendent) concealment - Answers the withholding of known facts that, if material, can void a contract conditional contract - Answers aa type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable consideration - Answers the binding force in a contract that requires something of value to be exchanged for the transfer of risk. the consideration on the part of the insured is the representations made in the application and the payment of premium; the consideration no the part of the insurer is the promise to pay in the event of loss consumer report - Answers a written and or oral statement regarding a consumers credit, character, reputation, or habits collected by a reporting agency from employment records, credit