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INSURANCE EXAM FX
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: implied authority
Answer:
authority that is not expressed or written into the contract but which the agent is assumed to have in order to transact the business of insurance for the principal
Question 2: Heath Maintenance Organization (HMO)
Answer:
a prepaid medical service plan in which specified medical service providers contract with the HMO to provide services
Question 3: aleatory
Answer:
a contract in which participating parties exchange unequal amounts
Question 4: noncancellable
Answer:
an insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a sustainable period of time
Question 5: consideration
Answer:
the blinding force in a contact that requires something of value to be exchanged for the transfer of risk
Question 6: executor y contract
Answer:
a contract which has not yet been fulfilled by one or both parties that promises action in the event of a specified future occurence
Question 7: non-forfeiture values
Answer:
those guaranteed values in a life insurance policy that cannot be taken from the insured, even if he or she ceases to pay premiums
Question 8: free look
Answer:
a period of time during which a policyowner may inspet 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
Question 9: contributory
Answer:
a group insurance plan that requires the employees to pay part of the premium
Question 10: joint life
Answer:
a single policy that is designed to insure two or more lives
Question 11: non-participating policies
Answer:
insurance that does not pay dividends
Question 12: front end load
Answer:
a fee or commission charged at the time of purchase of an annuity or a security
Question 13: commission
Answer:
the payment made by insurers to agents or brokers for the sale and service of policies
Question 14: Accelerated benefits
Answer:
riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses
Question 15: morbidity rate
Answer:
the ratio of the incidence of sickness to the number of well persons in a given group of people over a given period
Question 16: domicile of insurer
Answer:
an insurance company that conducts business in the state of incorporation
Question 17: administrator
Answer:
an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person
Question 18: lloyds associations
Answer:
organizations that provide support facilities for underwriters or goups of individuals that accept insurance risk
Question 19: endodontics
Answer:
an area of dentistry that deals with diagnosis, prevention and treatment of the dental pulp within natural teeth at the root canal
Question 20: accidental death benefits
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
Question 21: grace period
Answer:
period of time after the premium due date during which premiums may still be paid and the policy and its riders remain in force
Question 22: Health Reimbursement Accounts (HRAs)
Answer:
Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses
Question 23: option
Answer:
a choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values
Question 24: apparent authority
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
Question 25: adhesion
Answer:
a contract offered on a "take it or leave it" basis by an insurer, in which insured's options are to accept or reject
Question 26: concealment
Answer:
the withholding of known facts which can void a contract
Question 27: COBRA of 1986
Answer:
the law that provides for the continuation of group health care benefits for the insured for up to 18 months if he/she terminates employment or is no longer available
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