Mississippi Life and Health Insurance
exam latest review well answered 2024/25
Absolute assignment (CORRECT ANSWER)Policy assignment under
which the assignee (person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits.
Generally, when a policy is assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt,
even though the assignment is absolute in
form. (See assignment)
Accelerated benefits rider (CORRECT ANSWER)A life insurance rider
that allows for the early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s
s or injury.
Acceptance (CORRECT ANSWER)(See offer and acceptance)
Accidental bodily injury provision (CORRECT ANSWER)Disability
income or accident policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) (CORRECT
ANSWER)Insurance providing payment if the insured's death results
,from an accident, if the insured accidentally severs a limb above the
wrist or ankle joints, or totally and irreversibly
Accidental death benefit rider (CORRECT ANSWER)A life insurance
policy rider providing for payment of an additional benefit
when death occurs by accidental means.
Accidental dismemberment (CORRECT ANSWER)Often defined as
"the severance of limbs at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or
not be considered dismemberment.
Accidental means provision (CORRECT ANSWER)Unforeseen,
unexpected, unintended cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for
any claim to be payable.
Accident and health insurance (CORRECT ANSWER)Under which
benefits are payable in case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance,
and sickness and accident insurance.
Accumulation unit (CORRECT ANSWER)Premiums an annuitant pays
into annuities are credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity
units.
,Acquired immune deficiency syndrome (AIDS) (CORRECT
ANSWER)A life-threatening condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and
claims guidelines in regard to AIDS risks
and AIDS-related conditions.
Acute illness (CORRECT ANSWER)A serious condition, such as
pneumonia, from which the body can fully recover with proper
medical attention.
Adhesion (CORRECT ANSWER)A life insurance policy is a contract
of adhesion because buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate
terms, rates, values, and so on.
Adjustable life insurance (CORRECT ANSWER)Combines features of
both term and whole life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors.
Premiums may be increased or decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to
the future.
Administrative-services-only (ASO) Plan (CORRECT
ANSWER)Arrangement under which an insurance company or an
, independent organization, for a fee, handles the administration of claims,
benefits, and other administrative
functionsfor a self-insured group.
Admitted insurer (CORRECT ANSWER)An insurance company that
has met the legal and financial requirements for operation within
a given state.
Adult day care (CORRECT ANSWER)Type of care (usually custodial)
designed for individuals who require assistance with various
activities of daily living, while their primary caregivers are absent.
Offered in care centers.
Adverse selection (CORRECT ANSWER)Selection "against the
company." Tendency of less favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of
policy owners to take advantage of favorable
options in insurance contracts.
Advertising Code (CORRECT ANSWER)Rules established by the
National Association of Insurance Commissioners (NAIC) to
regulate insurance advertising.
Agency (CORRECT ANSWER)Situation wherein one party (an agent)
has the power to act for another (the principal) i n dealing
exam latest review well answered 2024/25
Absolute assignment (CORRECT ANSWER)Policy assignment under
which the assignee (person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits.
Generally, when a policy is assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt,
even though the assignment is absolute in
form. (See assignment)
Accelerated benefits rider (CORRECT ANSWER)A life insurance rider
that allows for the early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s
s or injury.
Acceptance (CORRECT ANSWER)(See offer and acceptance)
Accidental bodily injury provision (CORRECT ANSWER)Disability
income or accident policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) (CORRECT
ANSWER)Insurance providing payment if the insured's death results
,from an accident, if the insured accidentally severs a limb above the
wrist or ankle joints, or totally and irreversibly
Accidental death benefit rider (CORRECT ANSWER)A life insurance
policy rider providing for payment of an additional benefit
when death occurs by accidental means.
Accidental dismemberment (CORRECT ANSWER)Often defined as
"the severance of limbs at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or
not be considered dismemberment.
Accidental means provision (CORRECT ANSWER)Unforeseen,
unexpected, unintended cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for
any claim to be payable.
Accident and health insurance (CORRECT ANSWER)Under which
benefits are payable in case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance,
and sickness and accident insurance.
Accumulation unit (CORRECT ANSWER)Premiums an annuitant pays
into annuities are credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity
units.
,Acquired immune deficiency syndrome (AIDS) (CORRECT
ANSWER)A life-threatening condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and
claims guidelines in regard to AIDS risks
and AIDS-related conditions.
Acute illness (CORRECT ANSWER)A serious condition, such as
pneumonia, from which the body can fully recover with proper
medical attention.
Adhesion (CORRECT ANSWER)A life insurance policy is a contract
of adhesion because buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate
terms, rates, values, and so on.
Adjustable life insurance (CORRECT ANSWER)Combines features of
both term and whole life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors.
Premiums may be increased or decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to
the future.
Administrative-services-only (ASO) Plan (CORRECT
ANSWER)Arrangement under which an insurance company or an
, independent organization, for a fee, handles the administration of claims,
benefits, and other administrative
functionsfor a self-insured group.
Admitted insurer (CORRECT ANSWER)An insurance company that
has met the legal and financial requirements for operation within
a given state.
Adult day care (CORRECT ANSWER)Type of care (usually custodial)
designed for individuals who require assistance with various
activities of daily living, while their primary caregivers are absent.
Offered in care centers.
Adverse selection (CORRECT ANSWER)Selection "against the
company." Tendency of less favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of
policy owners to take advantage of favorable
options in insurance contracts.
Advertising Code (CORRECT ANSWER)Rules established by the
National Association of Insurance Commissioners (NAIC) to
regulate insurance advertising.
Agency (CORRECT ANSWER)Situation wherein one party (an agent)
has the power to act for another (the principal) i n dealing
