New York Life, Accident and Health
Insurance Exam And Accurate Answers.
Accelerated Benefits - Answer Riders attached to life insurance policies which allow death benefits to
be used to cover nursing or convalescent home expenses.
Accident - Answer An unplanned, unforeseen event which occurs suddenly and at an unspecified place.
Accident Insurance - A type of insurance that protects the insured against loss due to accidental bodily
injury.
Accidental Bodily Injury - Answer Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - Answer An insurance policy which pays a specified
amount or a specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses
two limbs due to an accident.
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.
Accidental Death Insurance - Answer An insurance policy that provides payment if the insured's death
is the result of an accident.
Accumulation Period - Answer The time over which the annuitant makes payments or investments in
an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - Answer An infectious and incurable disease caused by
the human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - Answer Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
,Actual Cash Value (ACV) - Answer The required amount to pay damages or for property loss, which is
calculated based on the property's current replacement value minus depreciation.
Actual Charge - Answer The amount a physician or supplier actually bills for a particular service or
supply. Actuary - A person trained in the technical aspects of insurance and related fields, particularly in
the mathematics of insurance; a person who, on behalf of the company, determines the mathematical
probability of loss.
Adhesion - Answer A contract offered on a "take-it-or-leave-it" basis by an insurer, 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 insured.
Adjustable Life - Answer Life insurance which permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period.
Adjuster - Answer A representative of an insurance company who investigates and acts on the behalf of
the company to obtain agreements for the amount of the insurance claim.
Administrator - Answer An individual appointed by a court as a fiduciary to settle the financial affairs
and estate of a deceased person.
Admitted (Authorized) Insurer - Answer An insurance company authorized and licensed to transact
business in a particular state.
Adult Day Care - Answer A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
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.
Agency - Answer An insurance sales office or company.
, Agent - Answer An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf
of an insurer.
Agent's Authority - Answer Special powers granted to an agent by his or her agency contract. Aleatory -
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 - Answer An insurance company that is incorporated outside the United States.
Alzheimer's Disease - A disease that causes the victim to become dysfunctional due to degeneration of
brain cells causing severe memory loss.
Ancillary - Answer Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work, but not hospital room and board expenses.
Annual Statement - Answer A detailed financial report that an insurance company must submit every
year to the insurance department of state(s) in which it conducts business.
Annuity - Answer A contract that provides income for a specified period of years, or for life.
Apparent Authority - Answer 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 - Answer A person making application for, or offering him/herself or another to be insured
under an insurance contract.
Application - Answer A document that provides information for underwriting purposes. After the policy
is issued, any unanswered questions are considered waived by the insurer.
Approved Amount - Answer The amount Medicare determines to be reasonable for a service that is
covered under part B of Medicare.
Insurance Exam And Accurate Answers.
Accelerated Benefits - Answer Riders attached to life insurance policies which allow death benefits to
be used to cover nursing or convalescent home expenses.
Accident - Answer An unplanned, unforeseen event which occurs suddenly and at an unspecified place.
Accident Insurance - A type of insurance that protects the insured against loss due to accidental bodily
injury.
Accidental Bodily Injury - Answer Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - Answer An insurance policy which pays a specified
amount or a specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses
two limbs due to an accident.
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.
Accidental Death Insurance - Answer An insurance policy that provides payment if the insured's death
is the result of an accident.
Accumulation Period - Answer The time over which the annuitant makes payments or investments in
an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - Answer An infectious and incurable disease caused by
the human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - Answer Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
,Actual Cash Value (ACV) - Answer The required amount to pay damages or for property loss, which is
calculated based on the property's current replacement value minus depreciation.
Actual Charge - Answer The amount a physician or supplier actually bills for a particular service or
supply. Actuary - A person trained in the technical aspects of insurance and related fields, particularly in
the mathematics of insurance; a person who, on behalf of the company, determines the mathematical
probability of loss.
Adhesion - Answer A contract offered on a "take-it-or-leave-it" basis by an insurer, 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 insured.
Adjustable Life - Answer Life insurance which permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period.
Adjuster - Answer A representative of an insurance company who investigates and acts on the behalf of
the company to obtain agreements for the amount of the insurance claim.
Administrator - Answer An individual appointed by a court as a fiduciary to settle the financial affairs
and estate of a deceased person.
Admitted (Authorized) Insurer - Answer An insurance company authorized and licensed to transact
business in a particular state.
Adult Day Care - Answer A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
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.
Agency - Answer An insurance sales office or company.
, Agent - Answer An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf
of an insurer.
Agent's Authority - Answer Special powers granted to an agent by his or her agency contract. Aleatory -
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 - Answer An insurance company that is incorporated outside the United States.
Alzheimer's Disease - A disease that causes the victim to become dysfunctional due to degeneration of
brain cells causing severe memory loss.
Ancillary - Answer Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work, but not hospital room and board expenses.
Annual Statement - Answer A detailed financial report that an insurance company must submit every
year to the insurance department of state(s) in which it conducts business.
Annuity - Answer A contract that provides income for a specified period of years, or for life.
Apparent Authority - Answer 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 - Answer A person making application for, or offering him/herself or another to be insured
under an insurance contract.
Application - Answer A document that provides information for underwriting purposes. After the policy
is issued, any unanswered questions are considered waived by the insurer.
Approved Amount - Answer The amount Medicare determines to be reasonable for a service that is
covered under part B of Medicare.
