NYS LIFE HEALTH INSURANCE UPDATED EXAMS
PAPER QUESTIONS AND ANSWERS SURE A+
✔✔Annuity - ✔✔A contract that provides income for a specified period of years, or for
life.
✔✔Apparent Authority - ✔✔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 - ✔✔A person making application for, or offering him/herself or another to
be insured under an insurance contract.
✔✔Application - ✔✔A document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the
insurer.
✔✔Assignment - ✔✔The transfer of ownership rights of a life insurance policy from one
person to another.
✔✔Attained Age - ✔✔The age of the insured at a determined date.
✔✔Attending Physician's Statement (APS) - ✔✔A statement usually obtained from the
applicant's doctor.
✔✔Authorized (Admitted) Insurer - ✔✔An insurance company authorized and licensed
to transact business in a particular state.
✔✔Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it
(e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
✔✔Back-End Load - ✔✔a fee charged at the time of a sale, transfer or withdrawal from
an annuity or a life insurance policy.
,✔✔Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Binder (Binding Receipt) - ✔✔A temporary contract that puts an insurance policy
into force before the premium has been paid.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔An individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔Buy-Sell Agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cash Value - ✔✔The amount to which a policyowner is entitled if the policy is
surrendered before maturity.
✔✔Certificate - ✔✔A statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔Coinsurance Clause - ✔✔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.
, ✔✔Commingling - ✔✔A practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust.
✔✔Commission - ✔✔The payment made by insurers to agents or brokers for the sale
and service of policies.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Concealment - ✔✔The withholding of known facts which, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged 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.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
✔✔Contributory - ✔✔A group insurance plan that requires the employees to pay part of
the premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Coordination of Benefits - ✔✔A provision that helps determine the primary provider
in situations where an insured is covered by more than one policy, thus avoiding claims
overpayments.
✔✔Co-pay - ✔✔An arrangement in which an insured must pay a specified amount for
services "up front" and the provider pays the remainder of the cost.
PAPER QUESTIONS AND ANSWERS SURE A+
✔✔Annuity - ✔✔A contract that provides income for a specified period of years, or for
life.
✔✔Apparent Authority - ✔✔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 - ✔✔A person making application for, or offering him/herself or another to
be insured under an insurance contract.
✔✔Application - ✔✔A document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the
insurer.
✔✔Assignment - ✔✔The transfer of ownership rights of a life insurance policy from one
person to another.
✔✔Attained Age - ✔✔The age of the insured at a determined date.
✔✔Attending Physician's Statement (APS) - ✔✔A statement usually obtained from the
applicant's doctor.
✔✔Authorized (Admitted) Insurer - ✔✔An insurance company authorized and licensed
to transact business in a particular state.
✔✔Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it
(e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
✔✔Back-End Load - ✔✔a fee charged at the time of a sale, transfer or withdrawal from
an annuity or a life insurance policy.
,✔✔Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Binder (Binding Receipt) - ✔✔A temporary contract that puts an insurance policy
into force before the premium has been paid.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔An individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔Buy-Sell Agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cash Value - ✔✔The amount to which a policyowner is entitled if the policy is
surrendered before maturity.
✔✔Certificate - ✔✔A statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔Coinsurance Clause - ✔✔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.
, ✔✔Commingling - ✔✔A practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust.
✔✔Commission - ✔✔The payment made by insurers to agents or brokers for the sale
and service of policies.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Concealment - ✔✔The withholding of known facts which, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged 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.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
✔✔Contributory - ✔✔A group insurance plan that requires the employees to pay part of
the premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Coordination of Benefits - ✔✔A provision that helps determine the primary provider
in situations where an insured is covered by more than one policy, thus avoiding claims
overpayments.
✔✔Co-pay - ✔✔An arrangement in which an insured must pay a specified amount for
services "up front" and the provider pays the remainder of the cost.
