Life & Health Insurance Exam (Arkansas).
218 Questions with 100% Correct Answers |
Verified | Updated 2024.
Reserves
Funds held by the company to fullfull future claims. Funds are set by the state department of insurance.
Multi-line Insurer
An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc)
Stock Companies
Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed
premiums. Nonparticipating policies.
nonparticipating policy
Insurance under which the insured is not entitled to share in the divisible surplus of the company.
Mutual Companies
Owned by the policy owners and issue participating policies.
Participating plan
A plan under which the policy owner receives shares (dividends) of the divisible surplus of the company.
Reinsurer
A company that provides financial protection to insurance companies. Handles risk to large for insurance
companies to handle alone.
Fraternal Benefit Society
Nonprofit organization that provides insurance to its members. It's agent who sell within the society do
not make commission. Stays under specific premiums.
Fair Credit Reporting Act
A federal law requiring a person to know if he/she is being investigated by an inspection company, and is
notified prior to investigation. The maximum penalty for obtaining consumer information under false
pretenses is $5,000 and/or 1 year imprisonment.
Buyer's Guide
A booklet that describes insurance policies and concepts, and provides general information to help an
applicant make an informed decision.
,Policy Summary
a written statement describing the features and elements of the policy being issued. Includes conditions,
coverage, limitations, and premiums.
National Association of Insurance Commissioners (NAIC)
Organization made up of individual state insurance commissioners whose purpose is to promote
uniformity in regulation by drafting model laws and regulations.
State Guaranty Association
protect policy owners in the event of any insurance company going out of business, becoming insolvent,
or the in ability to pay claims. Every authorized insurer are legally required to participate.
life insurance
insurance paid to named beneficiaries when the insured person dies.
Term Life Insurance
Insurance that provides financial protection from losses resulting from a death during a definite period,
or term.
whole life insurance
Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death,
whenever that may be. Characterized by level premiums & benefits, & cash value.
Group life insurance
A single contract the covers a group of people; employer to employee. Those covered may or may not
pay a portion of the premium, can usually choose their beneficiary, & does not own the contract.
Consideration
The part of insurance contract setting forth the amount of inital and renewable premiums and frequency
of future payments. Often includes the initial premium and completed application for insurance. In other
words "please consider me for insurance, here is my initial premium, completed application, and how
much/often i agree to pay in the future."
health insurance
A general way of describing health insurance through sickness and bodily injury. Not just hospital and
doctor visits.
disability income insurance
provides payments to replace income when an insured person is unable to work, sometimes only
protecting a portion of ones income.
Insuring Agreement
, The section of an insurance policy containing the insurer's promise to pay, the description of coverage
provided and perils insured against. (We ensure to insure you under these conditions for this amount)
Medical Expense Insurance
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital; sometimes pays for home
and office calls.
Entire Contract
An insurance policy provision stating that the application and policy contain all provisions and constitute
the entire contract.
Notice of Claim provision
Policy owner must notify Insurer of loss either in writing, in person or by phone within 20 days.
Reinstatement
The act of putting a lapsed policy back in force by giving satisfactory evidence of insurability and paying
any past due premiums.
Property Insurance
Financial reimbursement if theft or damage occurs.
Casualty (Liability) Insurance
Insurance includes liability, theft, workers comp, and elevator insurance. Protects you financially if
someone sues you.
property and casualty insurance
Often referred to collectively as property and casualty insurance because the things you own have the
potential to harm people in ways that could cause them to sue you. The main kinds of property and
casualty insurance include auto, home owners, renters, and umbrella insurance.
Proof of loss
Mandatory health insurance provision stating that the insured must provide a completed claim form to
the insurer within days of the date of the loss. If the insured wants paid, they must prove the loss
occured.
Deductible
What you pay out of pocket before the insurance begins to pay benefits. Deductibles typically apply to
property, casualty, and health insurance.
Declaration Page
A piece of paper which provides basic information about an insurance policy. Typically the first page is
the declaration page. Specifies name of insured, address, policy period, location of property, policy
limits, and other key information.
218 Questions with 100% Correct Answers |
Verified | Updated 2024.
Reserves
Funds held by the company to fullfull future claims. Funds are set by the state department of insurance.
Multi-line Insurer
An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc)
Stock Companies
Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed
premiums. Nonparticipating policies.
nonparticipating policy
Insurance under which the insured is not entitled to share in the divisible surplus of the company.
Mutual Companies
Owned by the policy owners and issue participating policies.
Participating plan
A plan under which the policy owner receives shares (dividends) of the divisible surplus of the company.
Reinsurer
A company that provides financial protection to insurance companies. Handles risk to large for insurance
companies to handle alone.
Fraternal Benefit Society
Nonprofit organization that provides insurance to its members. It's agent who sell within the society do
not make commission. Stays under specific premiums.
Fair Credit Reporting Act
A federal law requiring a person to know if he/she is being investigated by an inspection company, and is
notified prior to investigation. The maximum penalty for obtaining consumer information under false
pretenses is $5,000 and/or 1 year imprisonment.
Buyer's Guide
A booklet that describes insurance policies and concepts, and provides general information to help an
applicant make an informed decision.
,Policy Summary
a written statement describing the features and elements of the policy being issued. Includes conditions,
coverage, limitations, and premiums.
National Association of Insurance Commissioners (NAIC)
Organization made up of individual state insurance commissioners whose purpose is to promote
uniformity in regulation by drafting model laws and regulations.
State Guaranty Association
protect policy owners in the event of any insurance company going out of business, becoming insolvent,
or the in ability to pay claims. Every authorized insurer are legally required to participate.
life insurance
insurance paid to named beneficiaries when the insured person dies.
Term Life Insurance
Insurance that provides financial protection from losses resulting from a death during a definite period,
or term.
whole life insurance
Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death,
whenever that may be. Characterized by level premiums & benefits, & cash value.
Group life insurance
A single contract the covers a group of people; employer to employee. Those covered may or may not
pay a portion of the premium, can usually choose their beneficiary, & does not own the contract.
Consideration
The part of insurance contract setting forth the amount of inital and renewable premiums and frequency
of future payments. Often includes the initial premium and completed application for insurance. In other
words "please consider me for insurance, here is my initial premium, completed application, and how
much/often i agree to pay in the future."
health insurance
A general way of describing health insurance through sickness and bodily injury. Not just hospital and
doctor visits.
disability income insurance
provides payments to replace income when an insured person is unable to work, sometimes only
protecting a portion of ones income.
Insuring Agreement
, The section of an insurance policy containing the insurer's promise to pay, the description of coverage
provided and perils insured against. (We ensure to insure you under these conditions for this amount)
Medical Expense Insurance
Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital; sometimes pays for home
and office calls.
Entire Contract
An insurance policy provision stating that the application and policy contain all provisions and constitute
the entire contract.
Notice of Claim provision
Policy owner must notify Insurer of loss either in writing, in person or by phone within 20 days.
Reinstatement
The act of putting a lapsed policy back in force by giving satisfactory evidence of insurability and paying
any past due premiums.
Property Insurance
Financial reimbursement if theft or damage occurs.
Casualty (Liability) Insurance
Insurance includes liability, theft, workers comp, and elevator insurance. Protects you financially if
someone sues you.
property and casualty insurance
Often referred to collectively as property and casualty insurance because the things you own have the
potential to harm people in ways that could cause them to sue you. The main kinds of property and
casualty insurance include auto, home owners, renters, and umbrella insurance.
Proof of loss
Mandatory health insurance provision stating that the insured must provide a completed claim form to
the insurer within days of the date of the loss. If the insured wants paid, they must prove the loss
occured.
Deductible
What you pay out of pocket before the insurance begins to pay benefits. Deductibles typically apply to
property, casualty, and health insurance.
Declaration Page
A piece of paper which provides basic information about an insurance policy. Typically the first page is
the declaration page. Specifies name of insured, address, policy period, location of property, policy
limits, and other key information.
