Illinois Life & Health Insurance spot on exam solutions 2025
,Accelerated Benefits - correct answer ✔✔Riders attached to life insurance policies that allow death benefits to
be used to cover nursing or convalescent home expenses
Accidental death benefits - correct answer ✔✔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 - correct answer ✔✔an insurance policy that provides payment if the insureds death
is the result of an accident
accumulation period - correct answer ✔✔the time before an annuitants retirement during which the annuitant
is making payments or investments in the annuity
actual cash value (acv) - correct answer ✔✔the required amount to pay damages or for property loss. This
amount is calculated based on the properties current replacement value minus depreciation
adhesion - correct answer ✔✔a contract offered on a take it or leave it basis by an insurer, in which the
insureds 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 - correct answer ✔✔life insurance that permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period
adjuster - correct answer ✔✔a representative of an insurance company who investigates and acts not he behalf
of the company to obtain agreements for the amount of the insurance claim
administrator - correct answer ✔✔an individual appointed by a court as a fiduciary to settle the financial affairs and
estate of a deceased person
, admitted (authorized) insurer - correct answer ✔✔an insurance company authorized and licensed to transact
business in a particular state
adverse selection - correct answer ✔✔the tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability
agency - correct answer ✔✔an insurance sales office or company
agent - correct answer ✔✔an individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer
agent appointment - correct answer ✔✔the authorization of an agent to act for or represent and insurer
agents authority - correct answer ✔✔special powers granted to an agent by his or her agency contract
aleatory - correct answer ✔✔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 - correct answer ✔✔an insurance company that is incorporated outside the united states
annual statement - correct answer ✔✔a detailed financial report that an insurance company must submit every
year to the insurance department of states in which it conducts business
annuity - correct answer ✔✔a contract that provides income for a specified period of years or life
apparent authority - correct answer ✔✔the appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created
,Accelerated Benefits - correct answer ✔✔Riders attached to life insurance policies that allow death benefits to
be used to cover nursing or convalescent home expenses
Accidental death benefits - correct answer ✔✔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 - correct answer ✔✔an insurance policy that provides payment if the insureds death
is the result of an accident
accumulation period - correct answer ✔✔the time before an annuitants retirement during which the annuitant
is making payments or investments in the annuity
actual cash value (acv) - correct answer ✔✔the required amount to pay damages or for property loss. This
amount is calculated based on the properties current replacement value minus depreciation
adhesion - correct answer ✔✔a contract offered on a take it or leave it basis by an insurer, in which the
insureds 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 - correct answer ✔✔life insurance that permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period
adjuster - correct answer ✔✔a representative of an insurance company who investigates and acts not he behalf
of the company to obtain agreements for the amount of the insurance claim
administrator - correct answer ✔✔an individual appointed by a court as a fiduciary to settle the financial affairs and
estate of a deceased person
, admitted (authorized) insurer - correct answer ✔✔an insurance company authorized and licensed to transact
business in a particular state
adverse selection - correct answer ✔✔the tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability
agency - correct answer ✔✔an insurance sales office or company
agent - correct answer ✔✔an individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer
agent appointment - correct answer ✔✔the authorization of an agent to act for or represent and insurer
agents authority - correct answer ✔✔special powers granted to an agent by his or her agency contract
aleatory - correct answer ✔✔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 - correct answer ✔✔an insurance company that is incorporated outside the united states
annual statement - correct answer ✔✔a detailed financial report that an insurance company must submit every
year to the insurance department of states in which it conducts business
annuity - correct answer ✔✔a contract that provides income for a specified period of years or life
apparent authority - correct answer ✔✔the appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created
