NJ Health and Accident Study QUESTIONS
& ANSWERS | A+ GRADED 100% VERIFIED
• Adhesion Contract . Answer: Contract written by one party (insurer)
and accepted by the other.
• Aleatory Contract . Answer: Contract where performance depends on a
future uncertain event.
• Unilateral Contract . Answer: Contract where only one party makes a
legally enforceable promise.
• Consideration . Answer: Value exchanged in a contract; premium and
application from the policyowner and promise to pay benefits from the
insurer.
• Representations . Answer: Statements made by the applicant that are
believed to be true.
• Misrepresentation . Answer: False statement made by the applicant that
may affect coverage.
• Concealment . Answer: Failure to disclose a material fact.
• Fraud . Answer: Intentional deception to obtain insurance or benefits.
• Waiver . Answer: Voluntary surrender of a known right by the insurer.
• Accident Insurance . Answer: Provides benefits for accidental bodily
injury.
• Health Insurance . Answer: Provides coverage for sickness, injury, and
medical expenses.
, • Insured . Answer: Person whose health or disability is covered by the
policy.
• Policyowner . Answer: Person who owns the policy and controls its
provisions.
• Insurer . Answer: Insurance company that issues the policy and pays
claims.
• Producer . Answer: Licensed individual who sells, solicits, or
negotiates insurance.
• Benefit . Answer: Amount payable under an insurance policy.
• Premium . Answer: Payment required to keep an insurance policy in
force.
• Application . Answer: Form used to apply for insurance coverage.
• Free Look Period . Answer: Time after policy delivery when the
policyowner may cancel for a full refund.
• Basic Medical Expense Policy . Answer: Provides limited coverage for
specified medical services.
• Major Medical Expense Policy . Answer: Covers large medical
expenses using deductibles, coinsurance, and stop-loss.
• Deductible . Answer: Amount the insured must pay before insurance
benefits begin.
• Coinsurance . Answer: Percentage of covered expenses shared between
insured and insurer.
& ANSWERS | A+ GRADED 100% VERIFIED
• Adhesion Contract . Answer: Contract written by one party (insurer)
and accepted by the other.
• Aleatory Contract . Answer: Contract where performance depends on a
future uncertain event.
• Unilateral Contract . Answer: Contract where only one party makes a
legally enforceable promise.
• Consideration . Answer: Value exchanged in a contract; premium and
application from the policyowner and promise to pay benefits from the
insurer.
• Representations . Answer: Statements made by the applicant that are
believed to be true.
• Misrepresentation . Answer: False statement made by the applicant that
may affect coverage.
• Concealment . Answer: Failure to disclose a material fact.
• Fraud . Answer: Intentional deception to obtain insurance or benefits.
• Waiver . Answer: Voluntary surrender of a known right by the insurer.
• Accident Insurance . Answer: Provides benefits for accidental bodily
injury.
• Health Insurance . Answer: Provides coverage for sickness, injury, and
medical expenses.
, • Insured . Answer: Person whose health or disability is covered by the
policy.
• Policyowner . Answer: Person who owns the policy and controls its
provisions.
• Insurer . Answer: Insurance company that issues the policy and pays
claims.
• Producer . Answer: Licensed individual who sells, solicits, or
negotiates insurance.
• Benefit . Answer: Amount payable under an insurance policy.
• Premium . Answer: Payment required to keep an insurance policy in
force.
• Application . Answer: Form used to apply for insurance coverage.
• Free Look Period . Answer: Time after policy delivery when the
policyowner may cancel for a full refund.
• Basic Medical Expense Policy . Answer: Provides limited coverage for
specified medical services.
• Major Medical Expense Policy . Answer: Covers large medical
expenses using deductibles, coinsurance, and stop-loss.
• Deductible . Answer: Amount the insured must pay before insurance
benefits begin.
• Coinsurance . Answer: Percentage of covered expenses shared between
insured and insurer.
