MD INSURANCE EXAM – LIFE QUESTIONS AND ANSWERS
Accelrated Benefits - (answer)Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses
Accidental Death Benefits - (answer)A policy rider that states that the cause of death will be analyzed to
determine if it complies witht he policy description of accidental death
Accumulation Period - (answer)The time before an annuitant's retirement during which the annuitant is
making
Accidental Death Insurance - (answer)An insurance policy that provides payment if the insured's death is
the result of an accident
Aquired Immunodeficiency Syndrome (AIDS) - (answer)An infections and incurable disease caused by
the human immunodeficiency virus (HIV)
Acutal Cash Value (ACV) - (answer)The required amount to pay damages or for property loss. This
amount is calculated based on theproperty's current replacement value minus depreciation
Actuary - (answer)A person trained in the technical aspects of insurance and related fields, particularly
in the mathematics of insurnance; a person who, on behalf of the company, determines the
mathematical probability of loss
Adhesion - (answer)A contract offered on a "take it or leave it" basis by an insurer, in which the insured's
only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
Adjustable Life - (answer)Life insurance which permits changes in teh face amount, premium period of
protection, and the duration of the premium payment period
Adjuster - (answer)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
, MD INSURANCE EXAM – LIFE QUESTIONS AND ANSWERS
Administrator - (answer)An individual appointed by a court as a fiduciary to settle the financial affairs
and state of a deceased person
Admitted (Authorized) Insurer - (answer)An insurance company authorized and licensed to transact
business in a particular state
Adult Day Care - (answer)A program for impaired adults that attempts to meet their health, social, and
functional needs to a setting away from their homes
Adverse Selection - (answer)The tendency of risks with highter probablility of loss topurchase and
maintain insurance more often than the risks who present lower probability
Agency - (answer)An insurance sales office or company
Agent - (answer)An insurance sales office or company
Agent's Authority - (answer)Special powers granted to an agent by his or her agency contract
Aleatory - (answer)A contract in which particpating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amout the insured will pay in permiums is unequal to the amount the
insurer will pay in the event of a loss.
Alien Insurer - (answer)An insurance company that is incorporated outside the US
Alzheimer's Disease - (answer)A disease that causes the victim to become dysfunctional due to
degeneration of brain cells and severe memory loss
Ancillary - (answer)Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work, but not hospital room and board expenses
Accelrated Benefits - (answer)Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses
Accidental Death Benefits - (answer)A policy rider that states that the cause of death will be analyzed to
determine if it complies witht he policy description of accidental death
Accumulation Period - (answer)The time before an annuitant's retirement during which the annuitant is
making
Accidental Death Insurance - (answer)An insurance policy that provides payment if the insured's death is
the result of an accident
Aquired Immunodeficiency Syndrome (AIDS) - (answer)An infections and incurable disease caused by
the human immunodeficiency virus (HIV)
Acutal Cash Value (ACV) - (answer)The required amount to pay damages or for property loss. This
amount is calculated based on theproperty's current replacement value minus depreciation
Actuary - (answer)A person trained in the technical aspects of insurance and related fields, particularly
in the mathematics of insurnance; a person who, on behalf of the company, determines the
mathematical probability of loss
Adhesion - (answer)A contract offered on a "take it or leave it" basis by an insurer, in which the insured's
only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
Adjustable Life - (answer)Life insurance which permits changes in teh face amount, premium period of
protection, and the duration of the premium payment period
Adjuster - (answer)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
, MD INSURANCE EXAM – LIFE QUESTIONS AND ANSWERS
Administrator - (answer)An individual appointed by a court as a fiduciary to settle the financial affairs
and state of a deceased person
Admitted (Authorized) Insurer - (answer)An insurance company authorized and licensed to transact
business in a particular state
Adult Day Care - (answer)A program for impaired adults that attempts to meet their health, social, and
functional needs to a setting away from their homes
Adverse Selection - (answer)The tendency of risks with highter probablility of loss topurchase and
maintain insurance more often than the risks who present lower probability
Agency - (answer)An insurance sales office or company
Agent - (answer)An insurance sales office or company
Agent's Authority - (answer)Special powers granted to an agent by his or her agency contract
Aleatory - (answer)A contract in which particpating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amout the insured will pay in permiums is unequal to the amount the
insurer will pay in the event of a loss.
Alien Insurer - (answer)An insurance company that is incorporated outside the US
Alzheimer's Disease - (answer)A disease that causes the victim to become dysfunctional due to
degeneration of brain cells and severe memory loss
Ancillary - (answer)Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work, but not hospital room and board expenses
