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LIFE AND HEALTH INSURANCE - OHIO
LICENSING EXAM | 270 QUESTIONS
WITH 100% CORRECT ANSWERS |
VERIFIED | LATEST UPDATE 2024/
GUARANTEED PASS!! IN ALPHABETICAL
ORDER.
“Absolute Assignment - CORRECT ANSWER=> The assignment by the policy owner of all control and
rights to a third party. This differs from collateral assignment, which allows all the rights and control to revert to the owner once a loan is paid off"
"Accident - CORRECT ANSWER=> A fortuitous event; unforeseen and unintended"
"Accidental Death Insurance - CORRECT ANSWER=> A form of health insurance that provides payment
if death of the insured results from accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental death and dismemberment (AD&D)"
"Accident and Sickness - CORRECT ANSWER=> Insurance against bodily injury, disability, or death by
accident or accidental means, or expense thereof, or against disability or expense resulting from sickness and the insurance relating thereto"
"Accident means - CORRECT ANSWER=> The unexpected cause of an accidental bodily injury. Under an
accidental means definition, the mishap itself must be accidental. If a person does something to contribute to the accident, the claim would not be paid under this restrictive definition"
"Accelerated benefit - CORRECT ANSWER=> Available only if the benefits are available during the
insured's lifetime, benefit amounts are fixed when accelerated, and the benefits, when paid, reduces the death benefit"
"Accumulation at interest option - CORRECT ANSWER=> A dividend option under which the policy
owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only)."
"Actuary - CORRECT ANSWER=> Once concerned with the application of probability and statistical
theory to insurance. This person sets expenses, and interest assumptions."
"ADB - CORRECT ANSWER=> Accidental death benefit, also known as double indemnity. There is
another variation called triple indemnity."
"AD&D - CORRECT ANSWER=> Accidental death and dismemberment insurance."
"Administrator - CORRECT ANSWER=> The person appointed by a court to settle a deceased's estate,
sometimes called and executor."
"Adverse selection - CORRECT ANSWER=> Selection against the insurance company. The tendency of
poorer risks to want insurance more often than standard risks."
"Agent - CORRECT ANSWER=> The individual appointed by an insurance company to solicit, negotiate,
effect, or countersign insurance contracts on its behalf."
"Aleatory - CORRECT ANSWER=> Something that depends upon chance or is random. It is derived from
the Latin idea of "rolling the dice.""
"Aleatory contract - CORRECT ANSWER=> A contract in which both parties know that one or the other
may receive more than paid in. This payment is dependent upon a fortuitous event. For example. a person pays the premium for a term policy for many years and does not die, thus, a claim is never filed."
"Alien company - CORRECT ANSWER=> An insured organized and domiciled in a country other than the
United States"
"Annuitant - CORRECT ANSWER=> The one receiving the Annuity and on whose life expectancy the
rates are figured."
"Annuity - CORRECT ANSWER=> 1. An amount of money, payable monthly or yearly, which liquidates a
financial asset. 2. An agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period. Annuities are also accumulations vehicles that function much like savings accounts."
"Applicant - CORRECT ANSWER=> The party making application to the insurance company for the
policy"
"Application - CORRECT ANSWER=> A form on which the prospective insured states facts requested by
the insurer and on the basis of which the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk."
those health policies designated as guaranteed renewable, or non-cancelable and guaranteed renewable."
"Cancellation - CORRECT ANSWER=> The termination of a contract of insurance in force by voluntary
act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement."
"Capital Sum - CORRECT ANSWER=> The maximum amount payable in one sum in the event of
accidental dismemberment. It is typically half of the face amount of principal sum."
"Cash Surrender Value - CORRECT ANSWER=> The value reposing in a policy that is the legal property
of the policy owner and that may be expected should the policy be surrendered for cash. Synonymous with cash value."
"Certificate - CORRECT ANSWER=> A statement Evidencing that a policy has been written and stating
the coverage in general. Often used with group coverage."
"Claim - CORRECT ANSWER=> A demand for payment under the insurance policy."
"Classification - CORRECT ANSWER=> The grouping of persons for the purpose of determining an
underwriting or rating group into which a particular risk must be placed."
"Co-Insurance - CORRECT ANSWER=> In Health Insurance, a provision that the insured and insurance
company will share covered losses in agreed proportion."
"Collateral Assignment - CORRECT ANSWER=> The assignment of part of the proceeds of an insurance
policy to a bank as collateral to settle the loan balance that may exist at the insured's death. This agreement is temporary."
"Common Disaster Provision - CORRECT ANSWER=> A provision that can be included in a Life contrat
that pvoides that the primary beneficiary must outlive the insured by a specified period of time in order to receive the proceeds. If not, the contingent beneficiary receives that proceeds. The provision is designed to protect the rights of the contingent beneficiary in the event of simultaneous death of the insured and the primary beneficiary. The time limit is up to 90 days, depending on state law."
"Comprehensive Health or Major Medical Insurance - CORRECT ANSWER=> A form of Health insurance
that combines the coverage of major medical and basic medical exspenses crontracts into one broad contract that provides coverage for almost all types of medical expense with few internal limits. Usually subject to a corridor deductible for expenses after the first dollar base plan limits are exceeded, and to a co-insurance clause applicable to all or some of the remaining covered expenses."
"Concealment - CORRECT ANSWER=> The withholding of facts by an applicant for insurance that
materially affect an insurance risk or loss."
"Conditional Receipt - CORRECT ANSWER=> A provision that, if premium settlement accompanies the
application, coverage shall be in for from the date of application, provided the insurance company would have issued the coverage on the basis of facts as revealed by the application and other usual sources of underwriting information. A physical does not have to be completed for the company to make this judgment"
"Conditionally Renewable - CORRECT ANSWER=> A contract of Health Insurance that provides that the
insured may renew the contract to a stated date or an advanced age, subject to the right of the insurer to decline renewal only under conditions defined in the contract."
"Conditions - CORRECT ANSWER=> The part of an insurance contract setting out the responsibilities of
both the insured and the insurer"
"Consideration - CORRECT ANSWER=> The exchange of value on which a contract is based. In life and
health insurance, the consideration is the premium plus the statements in the application."
"Consideration Clause - CORRECT ANSWER=> A clause in a Life policy specifying the premium due for
the insurance protection and the frequency of payment. Also called mode."
"Contingent Beneficiary - CORRECT ANSWER=> The person or persons named to receive benefits if the
primary beneficiary is not alive."
"Contract - CORRECT ANSWER=> A legal agreement between two parties for the consideration, such as
an insurance policy."
"Contributory Group - CORRECT ANSWER=> Group insurance for which the employees pay part of the
premium."
"Controlled Business - CORRECT ANSWER=> Life insurance coverage written on the agent's own life
and on the lives of such persons as the agent's relatives and business associates, or employees of a company in which an agent has an interest."
"Convertible term insurance - CORRECT ANSWER=> A term policy that can be converted to a
permanent type of coverage without proof of insurability"
"Corridor Deductible - CORRECT ANSWER=> A deductible used only in comprehensive major medical
that applies between benefits paid by the basic plan and the start of the major medical benefits"
"Credit Insurance - CORRECT ANSWER=> Insurance on a debtor in favor of a lender, intended to pay off
a loan or the balance due if the insured dies or is disabled."
"Death Benefit - CORRECT ANSWER=> The policy proceeds to be paid on the death of the insured."
"Embedded Deductible - CORRECT ANSWER=> Embedded deductible will only cover a family member
in a high deductible health insurance plan after the individual's personal deductible has already been met."
"Employer mandate - CORRECT ANSWER=> A requirement under the affordable care act that
businesses that employ 50 or more people and do not offer health insurance will pay a tax penalty beginning 2015"
"Endorsment - CORRECT ANSWER=> A form attached to an insurance contract changing part of the
contract. Sometimes called a rider."
"Essential Health Benefits (EHB) - CORRECT ANSWER=> The minimum coverage requirements for
health insurance under the affordable care act. the qualified plans must be guarantee issue with a no pre-existing conditions and no lifetime benefit maxiumums"
"Estoppel - CORRECT ANSWER=> This concept is related to waiver. Once a person or company waives a
known right, the waiver cannot be reversed."
"Exclusions - CORRECT ANSWER=> Causes, conditions, or property listed in the policy that are not
covered and for which no benefits."
"Experience - CORRECT ANSWER=> The loss record of an insured, a class of coverage, or an insurance
company."
"Extended term option - CORRECT ANSWER=> A life insurance non-forfeiture option, under which the
insured uses the policy's cash value accumulation to purchase single-premium term insurance in an amount equal to the original policy face amount"
"Face Amount - CORRECT ANSWER=> The amount indicated on the face of the policy that will be paid
at death or when the policy matures."
"Fee-for-service plan - CORRECT ANSWER=> Reimburses the insured or the provider for the covered
services costs and has a limited choice of providers."
"Fiduciary - CORRECT ANSWER=> A person who occupies a position of special trust and confidence."
"Fixed amount option - CORRECT ANSWER=> A settlement option under which the beneficiary receives
a fixed amount for an unspecified period of time. Payments continue until the principal and interest depleted."
"Fixed period option - CORRECT ANSWER=> A settlement option under which the beneficiary receives
a regular income for a specified period of time. At the end of the period, all principal and interest have been paid out."
"Foreign company - CORRECT ANSWER=> An insurer organized under laws of a state other than the
state in which the insurance is written."
"Fraud - CORRECT ANSWER=> An intentional misrepresentation made by a person with intent to take
advantage of another."
"General Agent - CORRECT ANSWER=> An individual appointed by an insurer to administer its business
in a given territory."
"Grace period - CORRECT ANSWER=> A period of time after the premium due date during which a
policy remains in force without penalty, even though the premium due has not been paid."
"Grievance - CORRECT ANSWER=> A written or oral complaint involving an urgent care request in
which the covered person complained during a utilization review, claims payment, handling, or reimbursement, or the contractual relationship with the carrier."
"Group Contract - CORRECT ANSWER=> A contract of insurance made with an employer or other entity
that covers a group of people identified as individuals by reference to their relationship to the entity. A group contract may be life insurance, health insurance, or an annuity."
"Group Life Insurance - CORRECT ANSWER=> Life insurance that a person is eligible to purchase
through membership in a group. The group may not be formed just to buy insurance."
"Guaranty Association - CORRECT ANSWER=> A state association that takes control of an insolvent
insurance company and provides the funds to pay for claims that the company is unable to pay."
"Guaranteed Insurability - CORRECT ANSWER=> A rider in life and health insurance contracts that
permits the insured to buy addition prescribed amounts of insurance, at prescribed intervals, without evidence of insurablility."
"Guaranteed Renewable - CORRECT ANSWER=> A contract that gives the insured continued coverage
in return for the timely payment of premiums for a substantial period of time. During that period of time, the insurer has no right to make any change in any provision of the contract other than a change in the premium rate for all insureds in the same class."
"Hazard - CORRECT ANSWER=> Any factor tending to make a policy owner a less desirable risk for the
insuring company. May be physical or moral (health, occupation, dangerous sports, criminality, or immorality)"
"Health Insurance - CORRECT ANSWER=> Broadly, coverage to provide benefits on the occurrence of
disabling sickness or accident or accidental death or dismemberment, or loss of income due to disability."
"Indemnity - CORRECT ANSWER=> Insurance is designed to restore the policy owner to the same
financial condition enjoyed prior to a loss. The intent is to cover the amount of the actual loss only: the insured should not profit from a loss situation."
"Individual Contract - CORRECT ANSWER=> A contract of life or health insurance made with an
individual that covers him, and in certain instances (like health policies), Specified members of the househould"
"Industrial Life - CORRECT ANSWER=> Life insurance generally with a face amount of less that $1,000,
with premiums collected monthly or more frequently by the agent in person. The grace period for this type of insurance is 28 days. Premiums were traditionally collected at the factory or workplace."
"Inpatient - CORRECT ANSWER=> A patient admitted to a hospital as a resident patient."
"Insurability - CORRECT ANSWER=> The acceptability of an applicant to the insurance company for
insurance."
"Insurable Interest - CORRECT ANSWER=> An interest in the case of an individual owning a policy on
the life of another by which there will be a loss if the insured dies. The interest may be based on either a family relationship or economic factor. Insurable interest must exist at the time of application, but not at the time of loss."
"Insurance - CORRECT ANSWER=> A contract or device for the transfer of pure risk to an insurer, who
agrees, for a consideration, to indemnify or pay a specified amount for losses suffered by the insured."
"Insurance age - CORRECT ANSWER=> an age upon which current premium rates may be established.
It is commonly based on age at last birthday, age at next birthday, or age at nearest birthday."
"Insurance Director - CORRECT ANSWER=> The common title for the head of the state deparment of
insurance"
"Insurance navigator - CORRECT ANSWER=> A person or entity selected to perform certain duties
identified in the affordable care act and is performing these functions under a grant."
"Insurance policy - CORRECT ANSWER=> A contract or legal document that establishes the terms of
agreement between the insurer and insured."
"Insured - CORRECT ANSWER=> The party to an insurance arrangement to whom, or on behalf of
whom, the insurance company agrees to indemnify for losses, provide benefits, or render service. In prepaid hospital service plans, the insured is called the subscriber."
"Insurer - CORRECT ANSWER=> The insurance company assuming risk and agreeing to pay claims or
provide services"
"Insuring Clause - CORRECT ANSWER=> The clause in a policy that specifies, in brief, the contract's
intent and benefits"
"Interest Option - CORRECT ANSWER=> A settlement option under which the insurer keeps the
insurance proceeds and invests them on behalf of the beneficiary. The beneficiary receives the interest from the investment. The proceeds remain the property of the beneficiary. The proceeds are not taxable but the interest is."
"Irrevocable Beneficiary - CORRECT ANSWER=> Cannot be changed without the named beneficiary's
consent, and the irrevocable beneficiary takes over owner-like rights to the policy."
"Joint and Survivorship Life Annuity - CORRECT ANSWER=> Payments are made to two annuitants, with
the survivor continuing to receive payments after the first annuitant dies."
"Joint Life Annuity - CORRECT ANSWER=> Payments continue to two annuitants for only as long as
both live. On the death of either one, payments stop."
"Jumping Juvenile - CORRECT ANSWER=> Juvenile insurance on which the face amount increases by a
multiple, usually five, of the original face amount when the insured reaches 21."
"Key person Insurance - CORRECT ANSWER=> Life or health insurance on important employees whose
death or disability would cause the employer financial loss. The insurance is usually owned by the payable to the employer."
"Lapse - CORRECT ANSWER=> The termination of a policy because of failure to pay the premium."
"Law of Large Numbers - CORRECT ANSWER=> An insurance company might protect losses on a
homogeneous group. Risks are not usually considered insurable unless the insurer has a large enough base of previous loss experience to be able to accurately predict future losses. It is the law of large numbers that makes accurate predictions of similar risks possible. Mortality tables are based on groups of at least 10,000,000 people"
"Legal reserve - CORRECT ANSWER=> The amount required as a reserve to pay claims and benefits,
using he mortality table and a maximum assumed interest rate prescribed by state law."
"Level premium insurance - CORRECT ANSWER=> Life insurance, the premium for which remains at the
same level (amount) throughout the life of the policy"
"Level Term Insurance - CORRECT ANSWER=> The amount of insurance protection in the term policy
remains constant during the policy period."
"Loss of Income Benefits - CORRECT ANSWER=> Benefits paid for Inability to work for remuneration
because of disability resulting from accidental bodily injury or sickness. The loss of income may be real or presumptive."
"Loss Ratio - CORRECT ANSWER=> The percentage of losses to premiums - usually losses incurred to
premiums earned."
"Lump Sum - CORRECT ANSWER=> The proceeds of a policy taken all at once"
"Major Medical Insurance - CORRECT ANSWER=> A type of health insurance that provides benefits for
most types of medical expenses incurred up to a high limit, subject to a deductible. Such contracts may contain a percentage participation clause (sometimes called the co-insurance clause) A major medical policy pays expenses both in and out of the hospital"
"Manual Rates - CORRECT ANSWER=> Insurance rates according to a company rate manual, which will
vary from company to company. Can also refer to rates developed by the application of a recognized rating plan. Often called standard rates."
"Market Value Annuity - CORRECT ANSWER=> The type of fixed annuity that pays a specific rate of
interest if held to maturity, but if surrendered before maturity could result in a higher or lower payout, depending upon current interest rates."
"Master Policy - CORRECT ANSWER=> The policy contract issued to the employer under a group
insurance plan."
"Material Misrepresentation - CORRECT ANSWER=> A misrepresentation that would have been
important or essential to the underwriter's decision to issue or rate the policy."
"Maturity - CORRECT ANSWER=> A life policy is mature when the face amount is payable. Whole Life
Matures at age 100."
"MEC, Modified Endowment Contract - CORRECT ANSWER=> A life insurance policy that has excessive
premiums paid into it in the first seven years, called the seven-pay test, and once a policy is marked as MEC, it can never be reversed"
"Medicaid - CORRECT ANSWER=> A medical benefits program administered by states and subsidized
by the federal government. Under this plan, various medical expenses will be paid to those who qualify, regardless of age, subject to an income/asset test"
"Medicare Benefits - CORRECT ANSWER=> Benefits provided by a federal program as part of the social
security program. They apply to persons over 65 years of age and certain disabled beneficiaries under the social security disability income program."
"Medical Examination - CORRECT ANSWER=> Examination by a physician behalf of an applicant for
insurance or in substantiation of a claim"
"Medical Expense Insurance - CORRECT ANSWER=> A form of health insurance that provides benefits
for medical, surgical, and hospital expenses. This term is used to include coverage under the names hospital surgical expense insurance and medical insurance."
"MIB - CORRECT ANSWER=> Medical Insurance Bureau. An organization serving as a clearinghouse of
medical information on risks reported to it by insurance companies that are members of the service. Information is reported to them as a source of underwriting information on applicants."
"Miscellaneous Expenses - CORRECT ANSWER=> Usually hospital charges other than room and board,
such as x-rays, drugs, lab fees, ect"
"Misrepresentation - CORRECT ANSWER=> The use of written or oral statements of the insured or
insurance company misrepresenting the risk, terms, coverage, benefits, privileges, or estimated future dividends of any policy, or the health of the insured."
"Misstatement of Age Clause - CORRECT ANSWER=> Provides that, if misstatement of age is discovered
after policy issue, the company can, if the insured is currently alive, adjust the premium amount on future premiums and request payment of the additional premium the policy owner should have paid. If the insured has died, the company can adjust the face amount of the policy to fit the premium that was paid at the correct age before paying the claim."
"Modal Premium - CORRECT ANSWER=> The premium paid according to the mode of payment
selected by the policy owner"
"Moral hazard - CORRECT ANSWER=> A condition of morals or habits that increases the probability of
loss from peril"
"Morbidity - CORRECT ANSWER=> A table showing the incidence of sickness for a given group"
"Mortality table - CORRECT ANSWER=> A statistical table showing the number of deaths for all ages 1
to 120"
"Mortgage Insurance Policy - CORRECT ANSWER=> In life and health insurance, a policy from which the
benefits are intended to pay off the balance due on a mortgage or meet the payments on a mortgage as they fall due upon or after the death or disability of the insured."
"Mutual Insurance Company (Insurer) - CORRECT ANSWER=> An incorporated insurance company
whose governing body is elected by the policy owners. The policy owners share in the success of the company through possible receipt of policy dividends."
"One year term dividend option - CORRECT ANSWER=> A dividend option under which the insured has
the company purchase one-year term insurance with the dividend."
"Optionally Renewable - CORRECT ANSWER=> A contract of health insurance in which the insurer
reserves the unrestricted right to terminate coverage at any anniversary or, in some cases, at any premium due date, but does not have the right to terminate coverage between such dates."
"Ordinary Life insurance - CORRECT ANSWER=> Another term sometimes used interchangeably with
whole life"
"Original Age - CORRECT ANSWER=> the insured's age when the policy was initially purchased"
"Other Insurance - CORRECT ANSWER=> The existence of another contract covering the same interest
and perils."
"Outpatient - CORRECT ANSWER=> A patient who is not a bed patient hospital where he receives
treatment."
"Paid up - CORRECT ANSWER=> Life insurance on which all premiums have been paid, but has not yet
matured by death or endowment."
"Paid up additions - CORRECT ANSWER=> The additional single-premium life insurance paid for by
policy dividends and added to the policy's face amount."
"Partial Disability - CORRECT ANSWER=> A condition in which, as a result of injury or sickness, the
insured cannot perform all the duties of his occupation. Partial disability follows a period of total disability."
"Participating - CORRECT ANSWER=> Insurance that pays policy dividends. Issued by a mutual
company. Sometimes called par."
"Partnership Insurance - CORRECT ANSWER=> Life insurance sold to a partnership to protect against
the loss of business continuity caused by the death or disability of a partner."
"Payor Benefit - CORRECT ANSWER=> A rider or provision, usually found juvenile policies, under which
premiums are waived if the payor of the premium (usually a parent) becomes disabled or dies while the child is still a minor."
"Per Capita - CORRECT ANSWER=> "Counting heads", that is, determining many beneficiaries there are
and splitting the death benefit equally by the number of beneficiaries."
"Per Stirpes - CORRECT ANSWER=> "By the bloodline", that is, if a beneficiary dies prior to the insured,
that beneficiary's heirs will split his share equally."
"Percentage Participation - CORRECT ANSWER=> A contract provision that the company will share
covered losses in agreed proportions. Also called co-insurance"
"Permanent and Total Disability - CORRECT ANSWER=> Total disability from which the insured does not
recover. When used as a definition of disability in a policy, permanent is presumed after a stated period of time."
"Policy - CORRECT ANSWER=> The written contract effecting insurance or the certificate thereof by
which named called, and papers attached thereto and made a part thereof."
"Policy Dividends - CORRECT ANSWER=> The policy owner's share of a company divisible surplus."
"Policy Fee - CORRECT ANSWER=> A special, one-time premium charge to offset, in while or part, the
first-year acquisition cost rather thatn to amortize it over several years."
"Policy Loan - CORRECT ANSWER=> A loan taken by the policy owner from the insurer using the
insurance cash value as collateral. May be deferred up to six months."
"Policy Owner - CORRECT ANSWER=> The person who has the right to exercise the privileges and
rights in the policy contract. Also called the contract holder."
"Pre-existing Condition - CORRECT ANSWER=> A condition for which medical advice or treatment was
recommended by, or received from, a provider of health care services, within six months preceding the effective date of coverage of an insured person."
"Premium - CORRECT ANSWER=> 1. The consideration for the insurance. A periodic payment made to
keep a policy in force."
"Prepaid Hospital Service Plan - CORRECT ANSWER=> Provides comprehensive health care for
members who pay a flat fee for services, regardless of whether outpatient or hospital treatment is needed."
"Primary Beneficiary - CORRECT ANSWER=> The named beneficiary first to receive proceeds or
benefits, if living, when proceeds or benefits are due."
"Pro Rata Cancellation - CORRECT ANSWER=> There termination of a contract with premium charge
being adjusted in proportion to the exact time the portection has been in force."
"Probationary Period - CORRECT ANSWER=> A period of time between the effective date of a health
policy and the date coverage begins for sickness."
"Reinsurance - CORRECT ANSWER=> The agreement between insurance companies under which one
accepts all or part of the risk of loss of the other."
"Renewable term - CORRECT ANSWER=> Term insurance that can be renewed without proof of the
insured's insurability."
"Renewal - CORRECT ANSWER=> The continuation in full force and effect of a policy that is about to
expire."
"Representations - CORRECT ANSWER=> The facts that the applicant represents as true and accurate
to the best of his knowledge and belief."
"Reserve - CORRECT ANSWER=> The amount that, when increased by the future premium on
outstanding policies and interest on those premiums, will enable the company to meet the future death claims that will arise because of those contracts of insurance."
"Rider - CORRECT ANSWER=> A form attached to a policy that expands or decreases its benefits or
excludes certain conditions from coverage."
"Risk - CORRECT ANSWER=> The uncertainty of loss that exists whenever more than one outcome is
possible. In the area of life insurance, death is certain, but time of death is uncertain."
"Risk Retention Group - CORRECT ANSWER=> An insurer that is set up for and by its members to only
provide specific types of liability insurance protection for the members, who typically engage in similar activities or businesses."
"Risk Selection - CORRECT ANSWER=> The process of selecting insureds with a normal life expectancy."
"Schedule - CORRECT ANSWER=> A list of specified amounts payable for surgical procedures,
dismemberment treatments, ancillary expenses, etc. in health policies"
"Self-inflicted injury - CORRECT ANSWER=> An injury to the body of the insured inflicted by the
insured, usually not covered."
"Service plans - CORRECT ANSWER=> An arrangement by the insurer to pay certain vendors of health
care services for serving convered persons. These arrangements may preclude or limit any additional charges for the defined services. Blue plans are the best known, but not the only, form of service insurers."
"Settlement Option - CORRECT ANSWER=> A method of receiving life insurance proceeds other than in
a lump sum."
"Shared Responsibility Payment - CORRECT ANSWER=> A tax penalty for not having an acceptable
individual health insurance policy in force according to the provisions of the affordable care act. The penalty amounts will change annually and be based on the income of the individual."
"Sickness Insurance - CORRECT ANSWER=> A form of health insurance against loss by illness or
disease. Illness or disease does not include accidental bodily injury. Sickness insurance may provide benefits for loss of time or expense incurred by pregnancy.,"
"Single-premium annuity - CORRECT ANSWER=> An annuity purchsed with one lump sum payment."
"Single-premium policy - CORRECT ANSWER=> A policy of a whole life contract, in which the entire
premium is paid in one payment; it stays in force until death or maturity at the insured's age of 120"
"Solicitor - CORRECT ANSWER=> A person who finds insurance prospects for an agent or broker."
"Standard - CORRECT ANSWER=> A risk that meets the same conditions of health, physical condition,
and morals as the usual tabular risks on which the rate is based."
"Standard non-forfeiture law - CORRECT ANSWER=> A law adopted by most states that provides that
any cash value accumulation or its equivalent must be made available to the policy owner should he stop paying the premiums."
"Standard Provisions - CORRECT ANSWER=> A set of statutory provisions required by most states to be
included in every health policy issued. Also called uniform policy provisions or mandatory policy provisions. Created with the cooperation of the NAIC"
"Standard Risk - CORRECT ANSWER=> A person entitled to life insurance protection without the extra
rating or special restrictions"
"Stated amount - CORRECT ANSWER=> The specified amount of money a policy will pay to or on
behalf of the insured upon the occurrence of a defined loss"
"State Childrens Health Insurance Program (SCHIP) - CORRECT ANSWER=> A health insurance plan,
also knows as healthy start, which is provided to uninsured children under the age of 19, whose families meet certain income poverty guidelines."
"Statement of good health - CORRECT ANSWER=> If an application is submitted without money, upon
delivery and collection of the premium the applicant must complete and sign this form to verify his current health condition"
"Stock insurance company - CORRECT ANSWER=> An incorporated insurance company with capital
dividend into shares and owned by the shareholders. Dividends are paid to stockholders and subject to income tax"
