NJ HEALTH AND ACCIDENT INSURANCE EXAM ACTUAL EXAM
NJ Accident and Health Insurance
COMPREHENSIVE QUESTIONS WITH DETAILED VERIFIED ANSWERS
Study online at https://quizlet.com/_hf26z3
(100% CORRECT ANSWERS) /ALREADY GRADED A+
1. In order for insur- 1. agreement
ance contracts to be 2. Consideration
legally binding, they 3. Competent parties
must have 4 essen- 4. legal purpose
tial elements:
2. consideration The binding force in a contract that requires something of value to be ex-
changed for the transfer of risk. The consideration on the part of the insured
is the representations made in the application and the payment of premium;
the consideration on the part of the insurer is the promise to pay in the event
of loss.
3. conditional contract Certain conditions must be met by all parties to the contract when a loss occurs
in order for the contract to be legally enforceable.
4. unilateral contract only one of the parties to the contract is legally bound to do anything; the
insurer is legally bound to pay losses covered by a policy force
5. contract of adhesion prepared by the insurer and accepted or rejected by the other party
6. warranty An absolutely true statement upon which the validity of the insurance policy
depends.
7. representations statements believed to be true to the best of one's knowledge
8. Material Misrepre- A statement that, if discovered, would alter the underwriting decision of the
sentation insurance company.
9. Fair Credit Report- established procedures that consumer-reporting agencies must follow in or-
ing Act der to ensure that records are confidential, accurate, relevant, and properly
used
10. Medical Information
Bureau
1/7
, NJ Accident and Health Insurance
Study online at https://quizlet.com/_hf26z3
owned by member insurance companies. It is a nonprofit trade organization
that receives adverse medical information from insurance companies and
maintains confidential medical impairment info on individuals
11. necessary signa- 1. the agent
tures 2. the applicant
3. the proposed insured
12. Blue Cross and Blue not insurance companies
Shield
13. Medical Savings Ac- An employer-funded account linked to a high deductible medical insurance
count plan.
14. Flexible Spending employees deposit a certain amount of their paycheck into an account before
Account paying income taxes. Then during the year, the employee can be directly
reimbursed from the account for eligible health care and dependent care
expenses.
15. who limits the annu- IRS
al contribution for
Dependent Care Ac-
counts to a spec-
ified amount that
gets adjusted annu-
ally for cost of living?
16. Health Reimburse- an account into which employers place contributions that employees can use
ment Account (HRA) to pay for medical expenses. Usually combined with a high-deductible health
insurance policy
17. Health Savings Ac-
count (HSA)
2/7
NJ Accident and Health Insurance
COMPREHENSIVE QUESTIONS WITH DETAILED VERIFIED ANSWERS
Study online at https://quizlet.com/_hf26z3
(100% CORRECT ANSWERS) /ALREADY GRADED A+
1. In order for insur- 1. agreement
ance contracts to be 2. Consideration
legally binding, they 3. Competent parties
must have 4 essen- 4. legal purpose
tial elements:
2. consideration The binding force in a contract that requires something of value to be ex-
changed for the transfer of risk. The consideration on the part of the insured
is the representations made in the application and the payment of premium;
the consideration on the part of the insurer is the promise to pay in the event
of loss.
3. conditional contract Certain conditions must be met by all parties to the contract when a loss occurs
in order for the contract to be legally enforceable.
4. unilateral contract only one of the parties to the contract is legally bound to do anything; the
insurer is legally bound to pay losses covered by a policy force
5. contract of adhesion prepared by the insurer and accepted or rejected by the other party
6. warranty An absolutely true statement upon which the validity of the insurance policy
depends.
7. representations statements believed to be true to the best of one's knowledge
8. Material Misrepre- A statement that, if discovered, would alter the underwriting decision of the
sentation insurance company.
9. Fair Credit Report- established procedures that consumer-reporting agencies must follow in or-
ing Act der to ensure that records are confidential, accurate, relevant, and properly
used
10. Medical Information
Bureau
1/7
, NJ Accident and Health Insurance
Study online at https://quizlet.com/_hf26z3
owned by member insurance companies. It is a nonprofit trade organization
that receives adverse medical information from insurance companies and
maintains confidential medical impairment info on individuals
11. necessary signa- 1. the agent
tures 2. the applicant
3. the proposed insured
12. Blue Cross and Blue not insurance companies
Shield
13. Medical Savings Ac- An employer-funded account linked to a high deductible medical insurance
count plan.
14. Flexible Spending employees deposit a certain amount of their paycheck into an account before
Account paying income taxes. Then during the year, the employee can be directly
reimbursed from the account for eligible health care and dependent care
expenses.
15. who limits the annu- IRS
al contribution for
Dependent Care Ac-
counts to a spec-
ified amount that
gets adjusted annu-
ally for cost of living?
16. Health Reimburse- an account into which employers place contributions that employees can use
ment Account (HRA) to pay for medical expenses. Usually combined with a high-deductible health
insurance policy
17. Health Savings Ac-
count (HSA)
2/7
