2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 1 of 54
Massachusetts Health & Accident
Insurance Exam
Hazard
Situation that increases chance of loss
Annuity
Policy issued by an insurance company to promise you an income that can last
you a lifetime
Insurer
An insurance company
Insured
A person or business covered by an insurance policy
Page 1 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
,2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 2 of 54
Health Insurance
Broad field of insurance plans that provide protection against financial
consequences of illness, accidents, injury, and disability
- Paid on a year-to-year basis
- Subject to periodic premium increases
- Benefits not fixed
Medical Expense Insurance
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital;
sometimes pays for home and officecalls
Disability Income Insurance
Provide a replacement income when wages are lost due to disability; based on
education, training, experience
- income creates limits
- monthly income payments
- highest premium = 14 day waiting period w/ 10 year benefit
- ceiling amount
Page 2 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
,2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 3 of 54
Accidental Death and Dismemberment Insurance (AD&D)
Provides the insured with a lump-sum benefit amount in the event of accidental
death or dismemberment under accidental circumstances
Interim Coverages
Term insurance for a period of months or less by special agreement of the
company; it permits a permanent policy to become effective at a selected future
date.
Interim
the intervening time
Subrogation
the right for an insurer to pursue a third party that caused an insurance loss to the
insured
Business Continuation Plans
Page 3 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
, 2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 4 of 54
continue the operation of the business in the event of a disabling sickness to a
business owner or key employee
Employee Benefit Plans
- help employee in event of disabling sickness or injury
- rare to not include provision of health insurance/benefits
- contributes to morale and productivity of employee
- provides needed benefits (helps hold down demands for wage increases)
- gives employer tax deductions
- enhances employer image
Business Overhead Expense Insurance
- sold individually
- designed to reimburse business for overhead expenses in the event a business
owner becomes disabled (day to day operations)
- does not include compensation for disabled owner
- premiums are tax-deductible as insurance expense
- benefits are taxable income
Page 4 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 1 of 54
Massachusetts Health & Accident
Insurance Exam
Hazard
Situation that increases chance of loss
Annuity
Policy issued by an insurance company to promise you an income that can last
you a lifetime
Insurer
An insurance company
Insured
A person or business covered by an insurance policy
Page 1 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
,2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 2 of 54
Health Insurance
Broad field of insurance plans that provide protection against financial
consequences of illness, accidents, injury, and disability
- Paid on a year-to-year basis
- Subject to periodic premium increases
- Benefits not fixed
Medical Expense Insurance
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital;
sometimes pays for home and officecalls
Disability Income Insurance
Provide a replacement income when wages are lost due to disability; based on
education, training, experience
- income creates limits
- monthly income payments
- highest premium = 14 day waiting period w/ 10 year benefit
- ceiling amount
Page 2 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
,2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 3 of 54
Accidental Death and Dismemberment Insurance (AD&D)
Provides the insured with a lump-sum benefit amount in the event of accidental
death or dismemberment under accidental circumstances
Interim Coverages
Term insurance for a period of months or less by special agreement of the
company; it permits a permanent policy to become effective at a selected future
date.
Interim
the intervening time
Subrogation
the right for an insurer to pursue a third party that caused an insurance loss to the
insured
Business Continuation Plans
Page 3 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
, 2026/2027 - Massachusetts Health & Accident Insurance
Massachusetts
Exam Health & Accident Insurance Exam.pdf Page 4 of 54
continue the operation of the business in the event of a disabling sickness to a
business owner or key employee
Employee Benefit Plans
- help employee in event of disabling sickness or injury
- rare to not include provision of health insurance/benefits
- contributes to morale and productivity of employee
- provides needed benefits (helps hold down demands for wage increases)
- gives employer tax deductions
- enhances employer image
Business Overhead Expense Insurance
- sold individually
- designed to reimburse business for overhead expenses in the event a business
owner becomes disabled (day to day operations)
- does not include compensation for disabled owner
- premiums are tax-deductible as insurance expense
- benefits are taxable income
Page 4 of 54 Massachusetts Health & Accident Insurance Exam.pdf
Massachusetts Health & Accident Insurance Exam.pdf
