ILLINOIS LIFE & HEALTH INSURANCE
EXAM QUESTIONS & DETAILED
ANSWERS PASSED
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
applicant - CORRECT ANSWER a person making application for, or offering himself,
herself or another to be insured under an insurance contract
application - CORRECT ANSWER a document that provides information for
underwriting purposes. after the policy is issued, any unanswered questions are
considered waived by the insurer
assignment - CORRECT ANSWER the transfer of ownership rights of a life insurance
policy from one person to another
attained age - CORRECT ANSWER the age of the insured at a determined date
EXAM QUESTIONS & DETAILED
ANSWERS PASSED
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
applicant - CORRECT ANSWER a person making application for, or offering himself,
herself or another to be insured under an insurance contract
application - CORRECT ANSWER a document that provides information for
underwriting purposes. after the policy is issued, any unanswered questions are
considered waived by the insurer
assignment - CORRECT ANSWER the transfer of ownership rights of a life insurance
policy from one person to another
attained age - CORRECT ANSWER the age of the insured at a determined date
