NEW YORK LIFE, ACCIDENT AND HEALTH
INSURANCE EXAM WITH SOLUTIONS
Accelerated Benefits - ✔✔Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses.
Accident - ✔✔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 - ✔✔Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - ✔✔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 - ✔✔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 - ✔✔An insurance policy that provides payment if the insured's death is the
result of an accident.
Accumulation Period - ✔✔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) - ✔✔An infectious and incurable disease caused by the
human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - ✔✔Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
Actual Cash Value (ACV) - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔Life insurance which permits changes in the face amount, premium amount, period
of protection, and the duration of the premium payment period.
Adjuster - ✔✔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 - ✔✔An individual appointed by a court as a fiduciary to settle the financial affairs and
estate of a deceased person.
Admitted (Authorized) Insurer - ✔✔An insurance company authorized and licensed to transact business
in a particular state.
Adult Day Care - ✔✔A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
Adverse Selection - ✔✔The tendency of risks with higher probability of loss to purchase and maintain
insurance more often than the risks who present lower probability.
Agency - ✔✔An insurance sales office or company.
Agent - ✔✔An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an
insurer.
Agent's Authority - ✔✔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 - ✔✔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 - ✔✔Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and
lab work, but not hospital room and board expenses.
Annual Statement - ✔✔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 - ✔✔A contract that provides income for a specified period of years, or for life.
Apparent Authority - ✔✔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 - ✔✔A person making application for, or offering him/herself or another to be insured under
an insurance contract.
, Application - ✔✔A document that provides information for underwriting purposes. After the policy is
issued, any unanswered questions are considered waived by the insurer.
Approved Amount - ✔✔The amount Medicare determines to be reasonable for a service that is covered
under part B of Medicare.
Assignment (Life) - ✔✔The transfer of ownership rights of a life insurance policy from one person to
another.
Assignment (Health) - ✔✔A claim to a provider or medical supplier to receive payments directly from
Medicare.
Attained Age - ✔✔The age of the insured at a determined date.
Attending Physician's Statement (APS) - ✔✔A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer - ✔✔An insurance company authorized and licensed to transact business
in a particular state.
Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
Back End Load - ✔✔a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life
insurance policy.
Basic Hospital Expense Insurance - ✔✔Coverage that provides benefits for room, board and
miscellaneous hospital expenses for a certain number of days during a hospital stay.
Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements.
Basic Medical Expense Insurance - ✔✔Coverage for doctor visits, x-rays, lab tests, and emergency room
visits; benefits, however, are limited to specified dollar amounts.
Beneficiary - ✔✔The person who receives the proceeds from the policy when the insured dies. Benefit
Period - The length of time over which the insurance benefits will be paid for each illness, disability or
hospital stay.
Binder (Binding Receipt) - ✔✔A temporary contract that puts an insurance policy into force before the
premium has been paid.
Birthday Rule - ✔✔The method of determining primary coverage for a dependent child, under which the
plan of the parent whose birthday occurs first in the calendar year is designated as primary.
INSURANCE EXAM WITH SOLUTIONS
Accelerated Benefits - ✔✔Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses.
Accident - ✔✔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 - ✔✔Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - ✔✔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 - ✔✔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 - ✔✔An insurance policy that provides payment if the insured's death is the
result of an accident.
Accumulation Period - ✔✔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) - ✔✔An infectious and incurable disease caused by the
human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - ✔✔Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
Actual Cash Value (ACV) - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔Life insurance which permits changes in the face amount, premium amount, period
of protection, and the duration of the premium payment period.
Adjuster - ✔✔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 - ✔✔An individual appointed by a court as a fiduciary to settle the financial affairs and
estate of a deceased person.
Admitted (Authorized) Insurer - ✔✔An insurance company authorized and licensed to transact business
in a particular state.
Adult Day Care - ✔✔A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
Adverse Selection - ✔✔The tendency of risks with higher probability of loss to purchase and maintain
insurance more often than the risks who present lower probability.
Agency - ✔✔An insurance sales office or company.
Agent - ✔✔An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an
insurer.
Agent's Authority - ✔✔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 - ✔✔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 - ✔✔Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia, and
lab work, but not hospital room and board expenses.
Annual Statement - ✔✔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 - ✔✔A contract that provides income for a specified period of years, or for life.
Apparent Authority - ✔✔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 - ✔✔A person making application for, or offering him/herself or another to be insured under
an insurance contract.
, Application - ✔✔A document that provides information for underwriting purposes. After the policy is
issued, any unanswered questions are considered waived by the insurer.
Approved Amount - ✔✔The amount Medicare determines to be reasonable for a service that is covered
under part B of Medicare.
Assignment (Life) - ✔✔The transfer of ownership rights of a life insurance policy from one person to
another.
Assignment (Health) - ✔✔A claim to a provider or medical supplier to receive payments directly from
Medicare.
Attained Age - ✔✔The age of the insured at a determined date.
Attending Physician's Statement (APS) - ✔✔A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer - ✔✔An insurance company authorized and licensed to transact business
in a particular state.
Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
Back End Load - ✔✔a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life
insurance policy.
Basic Hospital Expense Insurance - ✔✔Coverage that provides benefits for room, board and
miscellaneous hospital expenses for a certain number of days during a hospital stay.
Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements.
Basic Medical Expense Insurance - ✔✔Coverage for doctor visits, x-rays, lab tests, and emergency room
visits; benefits, however, are limited to specified dollar amounts.
Beneficiary - ✔✔The person who receives the proceeds from the policy when the insured dies. Benefit
Period - The length of time over which the insurance benefits will be paid for each illness, disability or
hospital stay.
Binder (Binding Receipt) - ✔✔A temporary contract that puts an insurance policy into force before the
premium has been paid.
Birthday Rule - ✔✔The method of determining primary coverage for a dependent child, under which the
plan of the parent whose birthday occurs first in the calendar year is designated as primary.
