Page |1
MISSISSIPPI LIFE AND HEALTH
INSURANCE EXAM 2025| BRAND NEW
EXAM QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS|
ACE YOUR GRADES.
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
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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
, Page |3
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.
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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
with third parties.
Agent - Correct Answer-Anyone not a duly licensed broker who solicits
insurance or aids in placing risks, delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - Correct Answer-The section of an insurance application
where the agent reports personal observations about the
applicant.
MISSISSIPPI LIFE AND HEALTH
INSURANCE EXAM 2025| BRAND NEW
EXAM QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS|
ACE YOUR GRADES.
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
, Page |2
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
, Page |3
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.
, Page |4
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
with third parties.
Agent - Correct Answer-Anyone not a duly licensed broker who solicits
insurance or aids in placing risks, delivering policies, or
collecting premiums on behalf of an insurance company.
Agent's report - Correct Answer-The section of an insurance application
where the agent reports personal observations about the
applicant.
