Complete Study Guide Actual Exam
Questions & Correct Answers (Verified
_____________Quiz____________?
Accelerated Benefits -
Answer✓✓
Riders attached to life insurance policies that allow death benefits to be used to cover
nursing or convalescent home expenses
_____________Quiz____________?
Accidental death benefits -
Answer✓✓
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
_____________Quiz____________?
accidental death insurance -
Answer✓✓
an insurance policy that provides payment if the insureds death is the result of an accident
_____________Quiz____________?
accumulation period -
Answer✓✓
1
, the time before an annuitants retirement during which the annuitant is making payments or
investments in the annuity
_____________Quiz____________?
actual cash value (acv) -
Answer✓✓
the required amount to pay damages or for property loss. This amount is calculated based
on the properties current replacement value minus depreciation
_____________Quiz____________?
adhesion -
Answer✓✓
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
_____________Quiz____________?
adjustable life -
Answer✓✓
life insurance that permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period
_____________Quiz____________?
adjuster -
Answer✓✓
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
_____________Quiz____________?
administrator -
2
, Answer✓✓
an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a
deceased person
_____________Quiz____________?
admitted (authorized) insurer -
Answer✓✓
an insurance company authorized and licensed to transact business in a particular state
_____________Quiz____________?
adverse selection -
Answer✓✓
the tendency of risks with higher probability of loss to purchase and maintain insurance
more often than the risks who present lower probability
_____________Quiz____________?
agency -
Answer✓✓
an insurance sales office or company
_____________Quiz____________?
agent -
Answer✓✓
an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the
insurer
_____________Quiz____________?
agent appointment -
Answer✓✓
3
, the authorization of an agent to act for or represent and insurer
_____________Quiz____________?
agents authority -
Answer✓✓
special powers granted to an agent by his or her agency contract
_____________Quiz____________?
aleatory -
Answer✓✓
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
_____________Quiz____________?
alien insurer -
Answer✓✓
an insurance company that is incorporated outside the united states
_____________Quiz____________?
annual statement -
Answer✓✓
a detailed financial report that an insurance company must submit every year to the
insurance department of states in which it conducts business
_____________Quiz____________?
annuity -
Answer✓✓
a contract that provides income for a specified period of years or life
4
Questions & Correct Answers (Verified
_____________Quiz____________?
Accelerated Benefits -
Answer✓✓
Riders attached to life insurance policies that allow death benefits to be used to cover
nursing or convalescent home expenses
_____________Quiz____________?
Accidental death benefits -
Answer✓✓
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
_____________Quiz____________?
accidental death insurance -
Answer✓✓
an insurance policy that provides payment if the insureds death is the result of an accident
_____________Quiz____________?
accumulation period -
Answer✓✓
1
, the time before an annuitants retirement during which the annuitant is making payments or
investments in the annuity
_____________Quiz____________?
actual cash value (acv) -
Answer✓✓
the required amount to pay damages or for property loss. This amount is calculated based
on the properties current replacement value minus depreciation
_____________Quiz____________?
adhesion -
Answer✓✓
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
_____________Quiz____________?
adjustable life -
Answer✓✓
life insurance that permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period
_____________Quiz____________?
adjuster -
Answer✓✓
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
_____________Quiz____________?
administrator -
2
, Answer✓✓
an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a
deceased person
_____________Quiz____________?
admitted (authorized) insurer -
Answer✓✓
an insurance company authorized and licensed to transact business in a particular state
_____________Quiz____________?
adverse selection -
Answer✓✓
the tendency of risks with higher probability of loss to purchase and maintain insurance
more often than the risks who present lower probability
_____________Quiz____________?
agency -
Answer✓✓
an insurance sales office or company
_____________Quiz____________?
agent -
Answer✓✓
an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the
insurer
_____________Quiz____________?
agent appointment -
Answer✓✓
3
, the authorization of an agent to act for or represent and insurer
_____________Quiz____________?
agents authority -
Answer✓✓
special powers granted to an agent by his or her agency contract
_____________Quiz____________?
aleatory -
Answer✓✓
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
_____________Quiz____________?
alien insurer -
Answer✓✓
an insurance company that is incorporated outside the united states
_____________Quiz____________?
annual statement -
Answer✓✓
a detailed financial report that an insurance company must submit every year to the
insurance department of states in which it conducts business
_____________Quiz____________?
annuity -
Answer✓✓
a contract that provides income for a specified period of years or life
4
