ILLINOIS LIFE HEALTH INSURANCE EXAM

PDF Download ILLINOIS LIFE & HEALTH INSURANCE EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: accidental death insurance

Answer:

an insurance policy that provides payment if the insureds death is the result of an accident

Question 2: applicant

Answer:

a person making application for, or offering himself, herself or another to be insured under an insurance contract

Question 3: extension of benefits

Answer:

a provision that allows coverage to continue beyond the policy expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. this coverage continues only until the employee returns to work or the dependent leaves the hospital

Question 4: death benefit

Answer:

the amount payable upon the death of the person whose life is insured

Question 5: coinsurance clause

Answer:

a provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance

Question 6: assignment

Answer:

the transfer of ownership rights of a life insurance policy from one person to another

Question 7: commissioner

Answer:

the chief executive and administrative officer of a state insurance department (in some states, known as director or superintendent)

Question 8: Employee retirement income security act (ERISA)

Answer:

the act that stipulates federal standards for private pension plans

Question 9: consumer report

Answer:

a written and or oral statement regarding a consumers credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources

Question 10: administrator

Answer:

an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person

Question 11: aleatory

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

Question 12: insurable interest

Answer:

a financial interest in the life of another person; a possibility of losing something of value if the insured should die. in life insurance, insurable interest must exist at the time of policy application or policy issue

Question 13: expiration

Answer:

the date specified in the policy as the date of termination

Question 14: certificate

Answer:

a statement or booklet that confirms that a policy has been written and that describes the coverage in general

Question 15: domestic insurer

Answer:

an insurance company that conducts business in the state of incorporation

Question 16: basic illustration

Answer:

a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguarenteed elements

Question 17: endow

Answer:

to reach the maturity date or time at which the face amount equals cash value

Question 18: coverage

Answer:

the inclusion of causes of loss (perils) which are covered within a scope of a policy

Question 19: alien insurer

Answer:

an insurance company that is incorporated outside the united states

Question 20: fiduciary

Answer:

an agent/broker who handles insurers funds in a trust capacity

Question 21: fraud

Answer:

intentional misrepresentation or deceit with the intent to induce a person to part with something of value

Question 22: accumulation period

Answer:

the time before an annuitants retirement during which the annuitant is making payments or investments in the annuity

Question 23: actual cash value (acv)

Answer:

the required amount to pay damages or for property loss. This amount is calculated based on the properties current replacement value minus depreciation

Question 24: certificate of insurance

Answer:

a legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided

Question 25: hazard (physical)

Answer:

a type of hazard that arises form the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth

Question 26: free look

Answer:

a period of time, usually required by law, during which a policy owner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason