Mississippi Life and Health Insurance
exam with correct answers
Absolute assignment - ** VERIFIED ANSWERS **✔✔Policy assignment under which the assignee
(person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally, when a policy is
assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though the assignment is
absolute in
form. (See assignment)
Accelerated benefits rider - ** VERIFIED ANSWERS **✔✔A life insurance rider that allows for the
early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - ** VERIFIED ANSWERS **✔✔(See offer and acceptance)
Accidental bodily injury provision - ** VERIFIED ANSWERS **✔✔Disability income or accident
policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - ** VERIFIED ANSWERS **✔✔Insurance
providing payment if the insured's death results
from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or totally
and irreversibly
Accidental death benefit rider - ** VERIFIED ANSWERS **✔✔A life insurance policy rider
providing for payment of an additional benefit
when death occurs by accidental means.
,Accidental dismemberment - ** VERIFIED ANSWERS **✔✔Often defined as "the severance of
limbs at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered
dismemberment.
Accidental means provision - ** VERIFIED ANSWERS **✔✔Unforeseen, unexpected, unintended
cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for any claim to be payable.
Accident and health insurance - ** VERIFIED ANSWERS **✔✔Under which benefits are payable in
case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance, and sickness and accident
insurance.
Accumulation unit - ** VERIFIED ANSWERS **✔✔Premiums an annuitant pays into annuities are
credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - ** VERIFIED ANSWERS **✔✔A life-threatening
condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and claims guidelines in regard
to AIDS risks
and AIDS-related conditions.
Acute illness - ** VERIFIED ANSWERS **✔✔A serious condition, such as pneumonia, from which
the body can fully recover with proper
medical attention.
Adhesion - ** VERIFIED ANSWERS **✔✔A life insurance policy is a contract of adhesion because
buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates, values, and so on.
,Adjustable life insurance - ** VERIFIED ANSWERS **✔✔Combines features of both term and
whole life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be increased or
decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - ** VERIFIED ANSWERS **✔✔Arrangement under
which an insurance company or an
independent organization, for a fee, handles the administration of claims, benefits, and other
administrative
functionsfor a self-insured group.
Admitted insurer - ** VERIFIED ANSWERS **✔✔An insurance company that has met the legal and
financial requirements for operation within
a given state.
Adult day care - ** VERIFIED ANSWERS **✔✔Type of care (usually custodial) designed for
individuals who require assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care centers.
Adverse selection - ** VERIFIED ANSWERS **✔✔Selection "against the company." Tendency of less
favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable
options in insurance contracts.
Advertising Code - ** VERIFIED ANSWERS **✔✔Rules established by the National Association of
Insurance Commissioners (NAIC) to
regulate insurance advertising.
, Agency - ** VERIFIED ANSWERS **✔✔Situation wherein one party (an agent) has the power to act
for another (the principal) i n dealing
with third parties.
Agent - ** VERIFIED ANSWERS **✔✔Anyone not a duly licensed broker who solicits insurance or
aids in placing risks, delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - ** VERIFIED ANSWERS **✔✔The section of an insurance application where the
agent reports personal observations about the
applicant.
Aleatory - ** VERIFIED ANSWERS **✔✔Feature of insurance contracts in that there is an element
of chance for both parties and that the dollar
given by the policyholder (premiums) and the insurer (benefits) may not be equal.
Alien Insurer - ** VERIFIED ANSWERS **✔✔Company incorporated or organized under the laws
of any foreign nation, providence, or territory.
Ambulatory surgery - ** VERIFIED ANSWERS **✔✔Surgery performed on an outpatient basis
Amount at risk - ** VERIFIED ANSWERS **✔✔Difference between the face amount of the policy
and the reserve or policy value at a given
time. In other words, the dollar amount over what the policy owner has contributed of cash value
toward payment of
the policyowner's own claim. Because the cash value increases every year, the net amount at risk
naturally
decreases until it finally reaches zero when the cash value or reserve become the face amount.
Annually renewable term (ART - ** VERIFIED ANSWERS **✔✔A form of renewable term
insurance that provides coverage for one year and
exam with correct answers
Absolute assignment - ** VERIFIED ANSWERS **✔✔Policy assignment under which the assignee
(person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally, when a policy is
assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though the assignment is
absolute in
form. (See assignment)
Accelerated benefits rider - ** VERIFIED ANSWERS **✔✔A life insurance rider that allows for the
early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - ** VERIFIED ANSWERS **✔✔(See offer and acceptance)
Accidental bodily injury provision - ** VERIFIED ANSWERS **✔✔Disability income or accident
policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - ** VERIFIED ANSWERS **✔✔Insurance
providing payment if the insured's death results
from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or totally
and irreversibly
Accidental death benefit rider - ** VERIFIED ANSWERS **✔✔A life insurance policy rider
providing for payment of an additional benefit
when death occurs by accidental means.
,Accidental dismemberment - ** VERIFIED ANSWERS **✔✔Often defined as "the severance of
limbs at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered
dismemberment.
Accidental means provision - ** VERIFIED ANSWERS **✔✔Unforeseen, unexpected, unintended
cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for any claim to be payable.
Accident and health insurance - ** VERIFIED ANSWERS **✔✔Under which benefits are payable in
case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance, and sickness and accident
insurance.
Accumulation unit - ** VERIFIED ANSWERS **✔✔Premiums an annuitant pays into annuities are
credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - ** VERIFIED ANSWERS **✔✔A life-threatening
condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and claims guidelines in regard
to AIDS risks
and AIDS-related conditions.
Acute illness - ** VERIFIED ANSWERS **✔✔A serious condition, such as pneumonia, from which
the body can fully recover with proper
medical attention.
Adhesion - ** VERIFIED ANSWERS **✔✔A life insurance policy is a contract of adhesion because
buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates, values, and so on.
,Adjustable life insurance - ** VERIFIED ANSWERS **✔✔Combines features of both term and
whole life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be increased or
decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - ** VERIFIED ANSWERS **✔✔Arrangement under
which an insurance company or an
independent organization, for a fee, handles the administration of claims, benefits, and other
administrative
functionsfor a self-insured group.
Admitted insurer - ** VERIFIED ANSWERS **✔✔An insurance company that has met the legal and
financial requirements for operation within
a given state.
Adult day care - ** VERIFIED ANSWERS **✔✔Type of care (usually custodial) designed for
individuals who require assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care centers.
Adverse selection - ** VERIFIED ANSWERS **✔✔Selection "against the company." Tendency of less
favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable
options in insurance contracts.
Advertising Code - ** VERIFIED ANSWERS **✔✔Rules established by the National Association of
Insurance Commissioners (NAIC) to
regulate insurance advertising.
, Agency - ** VERIFIED ANSWERS **✔✔Situation wherein one party (an agent) has the power to act
for another (the principal) i n dealing
with third parties.
Agent - ** VERIFIED ANSWERS **✔✔Anyone not a duly licensed broker who solicits insurance or
aids in placing risks, delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - ** VERIFIED ANSWERS **✔✔The section of an insurance application where the
agent reports personal observations about the
applicant.
Aleatory - ** VERIFIED ANSWERS **✔✔Feature of insurance contracts in that there is an element
of chance for both parties and that the dollar
given by the policyholder (premiums) and the insurer (benefits) may not be equal.
Alien Insurer - ** VERIFIED ANSWERS **✔✔Company incorporated or organized under the laws
of any foreign nation, providence, or territory.
Ambulatory surgery - ** VERIFIED ANSWERS **✔✔Surgery performed on an outpatient basis
Amount at risk - ** VERIFIED ANSWERS **✔✔Difference between the face amount of the policy
and the reserve or policy value at a given
time. In other words, the dollar amount over what the policy owner has contributed of cash value
toward payment of
the policyowner's own claim. Because the cash value increases every year, the net amount at risk
naturally
decreases until it finally reaches zero when the cash value or reserve become the face amount.
Annually renewable term (ART - ** VERIFIED ANSWERS **✔✔A form of renewable term
insurance that provides coverage for one year and
