Colorado Health Insurance
Comprehensive Resource To Help You Ace Exams Includes
Frequently Tested Questions With ELABORATED 100%
Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Cash value - CORRECT ANSWER the amount to which a policy
owner is entitled if the policy is surrendered before maturity.
2. Certificate - CORRECT ANSWER a statement or booklet that
confirms that a policy has been written and that describes the
coverage in general.
3. Certificate of authority - CORRECT ANSWER a document that
authorizes a company to start conducting business and specifies the
kind or kinds of insurance a company can transact. It is illegal for an
insurance company to transact insurance without this certificate.
4. Certificate of Insurance - CORRECT ANSWER A legal document that
indicates that an insurance policy has been issued, and that states
both the amounts and types of insurance provided.
5. Claim - CORRECT ANSWER a request for payment of the benefits
provided by an insurance contract.
6. Coercion - CORRECT ANSWER an unfair trade practice in which an
agent uses physical or mental force with the intent of inducing an
applicant to purchase insurance.
7. Co-insurance clause - CORRECT ANSWER a provision that states
that the insurer and the insured will share the losses covered by the
policy in a proportion agreed upon in advance.
8. Commingling - CORRECT ANSWER A practice in which a person in
a fiduciary capacity illegally mixes his/her personal funds with funds
he/she is holding in trust.
,9. Commission - CORRECT ANSWER the payment made by insurers to
agents or Brokers for the sale and service of policies.
10. Commissioner - CORRECT ANSWER the chief executive and
administrative officer of a state insurance department (in some states,
known as Director or Superintendent).
11. Concealment - CORRECT ANSWER the withholding of known
facts that, if material, can void a contract.
12. conditional contract - CORRECT ANSWER A type of an
agreement in which both parties must perform certain duties and
follow rules of conduct to make the contract enforceable.
13. Consideration - CORRECT ANSWER The Binding force in a
contract that requires something of value to be exchanged for the
transfer of risk. The consideration on the part of the insured is the
representations made in the application and the payment of Premium;
the consideration on the part of the insurer is the promise to pay in
the event of loss.
14. Consumer Report - CORRECT ANSWER A written and/or oral
statement regarding a consumer's credit, character, reputation, or
habits collected by a reporting agency from employment records,
credit reports, and other public sources.
15. contract - CORRECT ANSWER An agreement between two or
more parties enforceable by law.
16. contributory - CORRECT ANSWER A group insurance plan that
requires the employees to pay part of the premium.
17. controlled business - CORRECT ANSWER An entity that
obtains and possesses a license solely for the purpose of writing
business on the owner, immediate family, relatives, employer and
employees.
18. convertible - CORRECT ANSWER a policy that may be
exchanged for another type of policy by contractual provision, at the
, option of the policy owner, and without evidence of insurability (i.e.
term life change to a form of permanent life).
19. counter signature - CORRECT ANSWER The act of signing an
insurance policy by a licensed resident agent.
20. coverage - CORRECT ANSWER the inclusion of causes of loss
(perils) which are covered within a scope of a policy.
21. credit life insurance - CORRECT ANSWER A special type of
coverage written to pay off the balance of a loan in the event of the
death of the debtor.
22. Death Benefit - CORRECT ANSWER The amount payable
upon the death of the person whose life is insured.
23. Decreasing Term - CORRECT ANSWER A type of life
insurance that features a level premium and a death benefit that
decreases each year over the duration of the policy.
Defamation - CORRECT ANSWER an unfair trade practice in which one
agent or insurer makes an injurious statement about another with the intent
of harming the person or company's reputation.
dependent - CORRECT ANSWER Someone who relies on another for
support and maintenance.
director - CORRECT ANSWER the chief executive and administrative
officer of the Insurance Department (in some states, known as
Commissioner or Superintendent).
disclosure - CORRECT ANSWER An act of identifying the name of the
producer, representative or firm, limited insurance representative, or
temporary insurance producer on any policy solicitation.
domestic insurer - CORRECT ANSWER An insurance company that
conducts business in the state of incorporation.
domicile of insurer - CORRECT ANSWER Insurer's location of
incorporation and the legal ability to write business in a state.
, Earned Premium - CORRECT ANSWER The amount of the premium for
which the policy protection has been given.
effective date - CORRECT ANSWER The date when an insurance policy
begins (also known as the inception date).
Employee Retirement Income Security Act (ERISA) - CORRECT
ANSWER The act that stipulates federal standards for private pension
plans.
endorsement - CORRECT ANSWER a form changing the provisions of
and attached to a life insurance policy (also known as a rider).
endow - CORRECT ANSWER to reach the maturity date or time at which
the face amount equals cash values.
Estoppel - CORRECT ANSWER A legal impediment to denying a fact or
restoring a right that has been previously waived.
excess insurance - CORRECT ANSWER Insurance that pays over and
above or in addition to basic policy limits.
exclusions - CORRECT ANSWER Causes of loss, exposures, conditions,
etc. listed in the policy for which the benefits will not be paid.
expiration - CORRECT ANSWER the date specified in the policy as the
date of termination.
Express Authority - CORRECT ANSWER The authority granted to an
agent by means of the agent's written contract.
extension of benefits - CORRECT ANSWER A provision that allows
coverage to continue beyond the policy's expiration date for employees
who are not actively at work due to disability or who have dependents
hospitalized on that date. This coverage continues only until the employee
returns to work or the dependent leaves the hospital.
face - CORRECT ANSWER the first page of a policy
Comprehensive Resource To Help You Ace Exams Includes
Frequently Tested Questions With ELABORATED 100%
Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Cash value - CORRECT ANSWER the amount to which a policy
owner is entitled if the policy is surrendered before maturity.
2. Certificate - CORRECT ANSWER a statement or booklet that
confirms that a policy has been written and that describes the
coverage in general.
3. Certificate of authority - CORRECT ANSWER a document that
authorizes a company to start conducting business and specifies the
kind or kinds of insurance a company can transact. It is illegal for an
insurance company to transact insurance without this certificate.
4. Certificate of Insurance - CORRECT ANSWER A legal document that
indicates that an insurance policy has been issued, and that states
both the amounts and types of insurance provided.
5. Claim - CORRECT ANSWER a request for payment of the benefits
provided by an insurance contract.
6. Coercion - CORRECT ANSWER an unfair trade practice in which an
agent uses physical or mental force with the intent of inducing an
applicant to purchase insurance.
7. Co-insurance clause - CORRECT ANSWER a provision that states
that the insurer and the insured will share the losses covered by the
policy in a proportion agreed upon in advance.
8. Commingling - CORRECT ANSWER A practice in which a person in
a fiduciary capacity illegally mixes his/her personal funds with funds
he/she is holding in trust.
,9. Commission - CORRECT ANSWER the payment made by insurers to
agents or Brokers for the sale and service of policies.
10. Commissioner - CORRECT ANSWER the chief executive and
administrative officer of a state insurance department (in some states,
known as Director or Superintendent).
11. Concealment - CORRECT ANSWER the withholding of known
facts that, if material, can void a contract.
12. conditional contract - CORRECT ANSWER A type of an
agreement in which both parties must perform certain duties and
follow rules of conduct to make the contract enforceable.
13. Consideration - CORRECT ANSWER The Binding force in a
contract that requires something of value to be exchanged for the
transfer of risk. The consideration on the part of the insured is the
representations made in the application and the payment of Premium;
the consideration on the part of the insurer is the promise to pay in
the event of loss.
14. Consumer Report - CORRECT ANSWER A written and/or oral
statement regarding a consumer's credit, character, reputation, or
habits collected by a reporting agency from employment records,
credit reports, and other public sources.
15. contract - CORRECT ANSWER An agreement between two or
more parties enforceable by law.
16. contributory - CORRECT ANSWER A group insurance plan that
requires the employees to pay part of the premium.
17. controlled business - CORRECT ANSWER An entity that
obtains and possesses a license solely for the purpose of writing
business on the owner, immediate family, relatives, employer and
employees.
18. convertible - CORRECT ANSWER a policy that may be
exchanged for another type of policy by contractual provision, at the
, option of the policy owner, and without evidence of insurability (i.e.
term life change to a form of permanent life).
19. counter signature - CORRECT ANSWER The act of signing an
insurance policy by a licensed resident agent.
20. coverage - CORRECT ANSWER the inclusion of causes of loss
(perils) which are covered within a scope of a policy.
21. credit life insurance - CORRECT ANSWER A special type of
coverage written to pay off the balance of a loan in the event of the
death of the debtor.
22. Death Benefit - CORRECT ANSWER The amount payable
upon the death of the person whose life is insured.
23. Decreasing Term - CORRECT ANSWER A type of life
insurance that features a level premium and a death benefit that
decreases each year over the duration of the policy.
Defamation - CORRECT ANSWER an unfair trade practice in which one
agent or insurer makes an injurious statement about another with the intent
of harming the person or company's reputation.
dependent - CORRECT ANSWER Someone who relies on another for
support and maintenance.
director - CORRECT ANSWER the chief executive and administrative
officer of the Insurance Department (in some states, known as
Commissioner or Superintendent).
disclosure - CORRECT ANSWER An act of identifying the name of the
producer, representative or firm, limited insurance representative, or
temporary insurance producer on any policy solicitation.
domestic insurer - CORRECT ANSWER An insurance company that
conducts business in the state of incorporation.
domicile of insurer - CORRECT ANSWER Insurer's location of
incorporation and the legal ability to write business in a state.
, Earned Premium - CORRECT ANSWER The amount of the premium for
which the policy protection has been given.
effective date - CORRECT ANSWER The date when an insurance policy
begins (also known as the inception date).
Employee Retirement Income Security Act (ERISA) - CORRECT
ANSWER The act that stipulates federal standards for private pension
plans.
endorsement - CORRECT ANSWER a form changing the provisions of
and attached to a life insurance policy (also known as a rider).
endow - CORRECT ANSWER to reach the maturity date or time at which
the face amount equals cash values.
Estoppel - CORRECT ANSWER A legal impediment to denying a fact or
restoring a right that has been previously waived.
excess insurance - CORRECT ANSWER Insurance that pays over and
above or in addition to basic policy limits.
exclusions - CORRECT ANSWER Causes of loss, exposures, conditions,
etc. listed in the policy for which the benefits will not be paid.
expiration - CORRECT ANSWER the date specified in the policy as the
date of termination.
Express Authority - CORRECT ANSWER The authority granted to an
agent by means of the agent's written contract.
extension of benefits - CORRECT ANSWER A provision that allows
coverage to continue beyond the policy's expiration date for employees
who are not actively at work due to disability or who have dependents
hospitalized on that date. This coverage continues only until the employee
returns to work or the dependent leaves the hospital.
face - CORRECT ANSWER the first page of a policy
