LIFE INSURANCE (IDAHO) EXAM QUESTIONS
AND ACCURATE ANSWERS TO HELP YOU PASS.
An entity that indemnifies against losses, provides benefits, or renders
services (aka "company" or "insurance company"
✔✔Insurer
A general statement that identifies the basic agreement between the
insurance company and the insured, usually located on the first page of
the policy.
✔✔Insuring Clause
An act that is intended to cause injury. Self-inflicted injuries are not
covered under accident insurance; intentional injuries inflicted on the
insured by another are covered.
✔✔Intentional Injury
A level of care that is one step down from skilled nursing care; provided
under the supervision of physicians or registered nurses.
✔✔Intermediate Care
A report similar to consumer report, but one that also provides information
on the consumer's character, reputation and habits.
✔✔Investigative Consumer Reports
The individual's age when a policy is issued.
✔✔Issue Age
,A single policy that is designed to insure two or more lives.
✔✔Joint Life
Any life insurance written on the life of a minor.
✔✔Juvenile Life
Termination of a policy because the premium has not been paid by the
end of the grace period.
✔✔Lapse
A principle stating that the larger the number of similar exposure units
considered, the more closely the losses reported will equal the underlying
probability of loss.
✔✔Law of Large Numbers
The accounting measurement of an insurer's future obligations to pay
claims to policyowners.
✔✔Legal Reserve
A policy premium that remains the same over the period of time premiums
are paid.
✔✔Level Premium
Average number of years remaining for a person of a given age to live, as
shown on the mortality table.
✔✔Life Expectancy
,An arrangement that allows the policyowner sell their existing life
insurance policy to a third party for compensation.
✔✔Life Settlement
A variation of whole life insurance that charges a level annual premium
and provides a level, guaranteed death benefit to the insured's age 100
and will endow for the face amount if the insured lives to age 100.
Limited-pay life is designed so that the premiums for coverage will be
completely paid-up well before age 100.
✔✔Limited-Pay Whole Life
Selling assets as a method of raising capital.
✔✔Liquidation
A rider attached to a life insurance policy that provides LTC benefits or
benefits for the terminally ill by using available life insurance benefits.
✔✔Living Benefits Rider
Organizations that provide support facilities for underwriters or groups of
individuals that accept insurance risk.
✔✔Lloyd's Associations
The amount of money an insured can borrow using the cash value of
his/her life insurance policy as collateral.
✔✔Loan Value
The reduction, decrease, or disappearance of value of the person or
property insured in a policy, by a peril insured against.
✔✔Loss
, Settlement method that pays the beneficiary the entire proceeds of a life
insurance policy in one payment rather than in installments.
✔✔Lump Sum
A single-premium deferred annuity that allows a contract owner to lock in
a guaranteed interest rate over a specified maturity period.
✔✔Market Value Adjusted Annuity
The date when the face amount of the life insurance becomes payable.
✔✔Maturity Date
An information database that stores the health histories of individuals
who have applied for insurance in the past. Most insurance companies
subscribe to the database for underwriting purposes.
✔✔Medical Information Bureau (MIB)
A false statement or lie that can render the contract void.
✔✔Misrepresentation
The method of premium payment, whether annually, semiannually,
quarterly or monthly.
✔✔Mode of Payment
A table showing the probability of death at specified ages.
✔✔Mortality Table
AND ACCURATE ANSWERS TO HELP YOU PASS.
An entity that indemnifies against losses, provides benefits, or renders
services (aka "company" or "insurance company"
✔✔Insurer
A general statement that identifies the basic agreement between the
insurance company and the insured, usually located on the first page of
the policy.
✔✔Insuring Clause
An act that is intended to cause injury. Self-inflicted injuries are not
covered under accident insurance; intentional injuries inflicted on the
insured by another are covered.
✔✔Intentional Injury
A level of care that is one step down from skilled nursing care; provided
under the supervision of physicians or registered nurses.
✔✔Intermediate Care
A report similar to consumer report, but one that also provides information
on the consumer's character, reputation and habits.
✔✔Investigative Consumer Reports
The individual's age when a policy is issued.
✔✔Issue Age
,A single policy that is designed to insure two or more lives.
✔✔Joint Life
Any life insurance written on the life of a minor.
✔✔Juvenile Life
Termination of a policy because the premium has not been paid by the
end of the grace period.
✔✔Lapse
A principle stating that the larger the number of similar exposure units
considered, the more closely the losses reported will equal the underlying
probability of loss.
✔✔Law of Large Numbers
The accounting measurement of an insurer's future obligations to pay
claims to policyowners.
✔✔Legal Reserve
A policy premium that remains the same over the period of time premiums
are paid.
✔✔Level Premium
Average number of years remaining for a person of a given age to live, as
shown on the mortality table.
✔✔Life Expectancy
,An arrangement that allows the policyowner sell their existing life
insurance policy to a third party for compensation.
✔✔Life Settlement
A variation of whole life insurance that charges a level annual premium
and provides a level, guaranteed death benefit to the insured's age 100
and will endow for the face amount if the insured lives to age 100.
Limited-pay life is designed so that the premiums for coverage will be
completely paid-up well before age 100.
✔✔Limited-Pay Whole Life
Selling assets as a method of raising capital.
✔✔Liquidation
A rider attached to a life insurance policy that provides LTC benefits or
benefits for the terminally ill by using available life insurance benefits.
✔✔Living Benefits Rider
Organizations that provide support facilities for underwriters or groups of
individuals that accept insurance risk.
✔✔Lloyd's Associations
The amount of money an insured can borrow using the cash value of
his/her life insurance policy as collateral.
✔✔Loan Value
The reduction, decrease, or disappearance of value of the person or
property insured in a policy, by a peril insured against.
✔✔Loss
, Settlement method that pays the beneficiary the entire proceeds of a life
insurance policy in one payment rather than in installments.
✔✔Lump Sum
A single-premium deferred annuity that allows a contract owner to lock in
a guaranteed interest rate over a specified maturity period.
✔✔Market Value Adjusted Annuity
The date when the face amount of the life insurance becomes payable.
✔✔Maturity Date
An information database that stores the health histories of individuals
who have applied for insurance in the past. Most insurance companies
subscribe to the database for underwriting purposes.
✔✔Medical Information Bureau (MIB)
A false statement or lie that can render the contract void.
✔✔Misrepresentation
The method of premium payment, whether annually, semiannually,
quarterly or monthly.
✔✔Mode of Payment
A table showing the probability of death at specified ages.
✔✔Mortality Table
