Massachusetts Health & Accident
Insurance Exam Questions With Correct
Answers
Hazard
Situation that increases chance of loss
| | | | |
Annuity
Policy issued by an insurance company to promise you an income that can last
| | | | | | | | | | | | |
you a lifetime
| | |
Insurer
An insurance company
| |
Insured
A person or business covered by an insurance policy
| | | | | | | |
,Health Insurance
|
Broad field of insurance plans that provide protection against financial
| | | | | | | | |
consequences of illness, accidents, injury, and disability
| | | | | | |
- Paid on a year-to-year basis
| | | |
- Subject to periodic premium increases
| | | |
- Benefits not fixed | |
Medical Expense Insurance
| |
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital;
| | | | | | | | | |
sometimes pays for home and officecalls
| | | | | |
Disability Income Insurance
| |
Provide a replacement income when wages are lost due to disability; based on
| | | | | | | | | | | |
education, training, experience
| | |
- income creates limits
| |
- monthly income payments | |
- highest premium = 14 day waiting period w/ 10 year benefit
| | | | | | | | | |
- ceiling amount |
,Accidental Death and Dismemberment Insurance (AD&D)
| | | | |
Provides the insured with a lump-sum benefit amount in the event of accidental
| | | | | | | | | | | |
death or dismemberment under accidental circumstances
| | | | | |
Interim Coverages
|
Term insurance for a period of months or less by special agreement of the
| | | | | | | | | | | | |
company; it permits a permanent policy to become effective at a selected future
| | | | | | | | | | | | |
date.
|
Interim
the intervening time
| |
Subrogation
the right for an insurer to pursue a third party that caused an insurance loss to the
| | | | | | | | | | | | | | | |
insured
|
Business Continuation Plans
| |
, continue the operation of the business in the event of a disabling sickness to a
| | | | | | | | | | | | | |
business owner or key employee
| | | | |
Employee Benefit Plans | |
- help employee in event of disabling sickness or injury
| | | | | | | |
- rare to not include provision of health insurance/benefits
| | | | | | |
- contributes to morale and productivity of employee | | | | | |
- provides needed benefits (helps hold down demands for wage increases)
| | | | | | | | |
- gives employer tax deductions
| | |
- enhances employer image | |
Business Overhead Expense Insurance
| | |
- sold individually
|
- designed to reimburse business for overhead expenses in the event a business
| | | | | | | | | | |
|owner becomes disabled (day to day operations)
| | | | | |
- does not include compensation for disabled owner
| | | | | |
- premiums are tax-deductible as insurance expense
| | | | |
- benefits are taxable income | | |
Insurance Exam Questions With Correct
Answers
Hazard
Situation that increases chance of loss
| | | | |
Annuity
Policy issued by an insurance company to promise you an income that can last
| | | | | | | | | | | | |
you a lifetime
| | |
Insurer
An insurance company
| |
Insured
A person or business covered by an insurance policy
| | | | | | | |
,Health Insurance
|
Broad field of insurance plans that provide protection against financial
| | | | | | | | |
consequences of illness, accidents, injury, and disability
| | | | | | |
- Paid on a year-to-year basis
| | | |
- Subject to periodic premium increases
| | | |
- Benefits not fixed | |
Medical Expense Insurance
| |
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital;
| | | | | | | | | |
sometimes pays for home and officecalls
| | | | | |
Disability Income Insurance
| |
Provide a replacement income when wages are lost due to disability; based on
| | | | | | | | | | | |
education, training, experience
| | |
- income creates limits
| |
- monthly income payments | |
- highest premium = 14 day waiting period w/ 10 year benefit
| | | | | | | | | |
- ceiling amount |
,Accidental Death and Dismemberment Insurance (AD&D)
| | | | |
Provides the insured with a lump-sum benefit amount in the event of accidental
| | | | | | | | | | | |
death or dismemberment under accidental circumstances
| | | | | |
Interim Coverages
|
Term insurance for a period of months or less by special agreement of the
| | | | | | | | | | | | |
company; it permits a permanent policy to become effective at a selected future
| | | | | | | | | | | | |
date.
|
Interim
the intervening time
| |
Subrogation
the right for an insurer to pursue a third party that caused an insurance loss to the
| | | | | | | | | | | | | | | |
insured
|
Business Continuation Plans
| |
, continue the operation of the business in the event of a disabling sickness to a
| | | | | | | | | | | | | |
business owner or key employee
| | | | |
Employee Benefit Plans | |
- help employee in event of disabling sickness or injury
| | | | | | | |
- rare to not include provision of health insurance/benefits
| | | | | | |
- contributes to morale and productivity of employee | | | | | |
- provides needed benefits (helps hold down demands for wage increases)
| | | | | | | | |
- gives employer tax deductions
| | |
- enhances employer image | |
Business Overhead Expense Insurance
| | |
- sold individually
|
- designed to reimburse business for overhead expenses in the event a business
| | | | | | | | | | |
|owner becomes disabled (day to day operations)
| | | | | |
- does not include compensation for disabled owner
| | | | | |
- premiums are tax-deductible as insurance expense
| | | | |
- benefits are taxable income | | |
