Questions + Answers Verified 100%
Correct!!
The tendency of risks witha higher probability of loss to purchase and maintain
insurance more often than the risks who present lower probability - Correct Answer-
Adverse Selection
An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of
an insurer. - Correct Answer-Agent
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. - Correct Answer-Aleatory
An insurance company that is incorporated outside the United States. - Correct Answer-
Alien Insurer
An infectious and incurable disease caused by the human immunodeficiency virus (hiv)
- Correct Answer-Acquired Immunodeficiency Symdrome
Activities individuals must do every day such as moving about, getting dressed, eating,
bathing, etc. - Correct Answer-Activities of daily living
The amount a physician or supplier actually bills for a particular service or supply. -
Correct Answer-Actual charge
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. - Correct Answer-Adhesion
An insurance company authorized and licensed to transact business in a particular
state. - Correct Answer-Admitted (Authorized) Insurer
A program for impaired adults that attempts to meet their health, social, and functional
needs in a setting away from their homes. - Correct Answer-Adult Day Care
An unplanned unforseen event which occurs suddenly at an unspecified place - Correct
Answer-Accident
,A type of insurance that protects the insured against loss due to an accidental bodily
injury - Correct Answer-Accident insurance
Unplanned unforseen traumatic injury to the body - Correct Answer-Accidental bodily
injury
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. -
Correct Answer-Accidental Death and Dismemberment
A disease that causes the victim to become dysfunctional due to degeneration of brain
cells and severe memory loss. - Correct Answer-Alzheimer's Disease
Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work, but not hospital room and board expenses. - Correct Answer-Ancillary
The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created. - Correct Answer-
Apparent Authority
The amount Medicare determines to be reasonable for a service that is covered under
part B of Medicare. - Correct Answer-Approved Amount
A claim to a provider or medical supplier to receive payments directly from Medicare. -
Correct Answer-Assignment
The age of the insured at a determined date. - Correct Answer-Attained Age
A statement usually obtained from the applicant's doctor. - Correct Answer-Attending
Physician Statement (APS)
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). - Correct Answer-
Avoidance
Coverage that provides benefits for room, board and miscellaneous hospital expenses
for a certain number of days during a hospital stay. - Correct Answer-Basic Hospital
Expense Insurance
Coverage for doctor visits, x-rays, lab tests, and emergency room visits; benefits,
however, are limited to specified dollar amounts. - Correct Answer-Basic Medical
Expense Insurance
, The person who receives the proceeds from the policy when the insured dies. - Correct
Answer-Beneficiary
The length of time over which the insurance benefits will be paid for each illness,
disability, or hospital stay - Correct Answer-Benefit Period
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. - Correct Answer-Birthday Rule
An unfair trade practice in which one person refuses to do business with another until
he or she agrees to certain comditioms. - Correct Answer-Boycott
A policy that provides benefits for all medical costs, including doctor visits,
hospitalization, and drugs. - Correct Answer-Blanket Medical Insurance
A booklet that describes insurance policies and concepts, and provides general
information to help an applicant make an informed decision. - Correct Answer-Buyers
Guide
A selection of health care benefits from which an employee may choose the ones that
he/she needs. - Correct Answer-Cafeteria Plan
A percentage of the principal amount of a policy paid to the insured if he/she suffered
the loss of an appendage. - Correct Answer-Capital Amount
Organizations that process claims and pay benefits in an insurance policy - Correct
Answer-Carriers
A demand of a person to stop committing an action that is in violation of a provision. -
Correct Answer-Cease and Desist Order
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. - Correct Answer-Certificate Authority
A written document that indicates that an insurance policy has been issued, and that
states both the amounts and types of insurance provided. - Correct Answer-Certificate
of Insurance
A request for payment of the benefits provided by an insurance contract. - Correct
Answer-Claim
An unfair trade practice in which an insurer uses physical or mental force to persuade
an applicant to buy insurance. - Correct Answer-Coercion