Idaho Life Insurance Exam
Accelerated Benefits - correct answer-Riders attached to life insurance policies that allow
death benefits to be used to cover nursing or convalescent home expenses.
Accidental Death Benefits - correct 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.
Accidental Death Insurance - correct answer-An insurance policy that provides payment if
the insured's death is the result of the accident.
Accumulation Period - correct answer-The time before an annuitant's retirement during
which the annuitant is making payments or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - correct answer-An infections and incurable
disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - correct answer-The required amount to pay damages or for
property loss. This amount is calculated based on the property's current replacement value
minus depreciation.
Adhesion - correct answer-A contract offered on a "take-it-or-leave-it" basis by an insurer, in
which the insured's only option is to either accept or reject the contract. Any ambiguities in
the contract will be settled in favor of the insured.
Adjustable Life - correct answer-Life insurance that permits changed in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - correct answer-A representative of an insurance company who investigates and
acts on behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - correct answer-An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Adult Day Care - correct answer-A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
Adverse Selection - correct answer-The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower probability.
Agency - correct answer-An insurance sales office or company.
, Agent - correct answer-An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.
Agent Appointment - correct answer-The authorization of an agent to act for or represent an
insurer.
Agent's Authority - correct answer-Special powers granted to an agent by his or her agency
contract.
Aleatory - correct 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 the the amount the insurer will pay in the event of a loss.
Alien Insurer - correct answer-An insurance company that is incorporated outside the United
States.
Annual Statement - correct answer-A detailed financial report that an insurance company
must submit every year to the insurance department of state in which it conducts business.
Annuity - correct answer-A contract that provides income for a specified period of years, or
for life.
Apparent Authority - correct answer-The appearance of the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances of the principal
created.
Applicant - correct answer-A person making applications for, or offering himself, herself or
another to be insured under an insurance contract.
Appication - correct answer-A document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the insurer.
Assignment - correct answer-The transfer of ownership rights of a life insurance policy from
one person to another.
Attained Age - correct answer-The age of the insured at a determined date.
Attending Physician's Statement (APS) - correct answer-A statement usually obtained from
the applicant's doctor.
Authorized (Admitted) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Avoidance - correct answer-A method of dealing with risk by deliberately keeping away from
it (ex. if a person wanted to avoid risk of being killed in airplane crash they may never fly)
Basic Illustration - correct answer-A ledger or proposal used in the sale of a life insurance
policy that shows both guaranteed and non-guaranteed elements.
Accelerated Benefits - correct answer-Riders attached to life insurance policies that allow
death benefits to be used to cover nursing or convalescent home expenses.
Accidental Death Benefits - correct 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.
Accidental Death Insurance - correct answer-An insurance policy that provides payment if
the insured's death is the result of the accident.
Accumulation Period - correct answer-The time before an annuitant's retirement during
which the annuitant is making payments or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - correct answer-An infections and incurable
disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - correct answer-The required amount to pay damages or for
property loss. This amount is calculated based on the property's current replacement value
minus depreciation.
Adhesion - correct answer-A contract offered on a "take-it-or-leave-it" basis by an insurer, in
which the insured's only option is to either accept or reject the contract. Any ambiguities in
the contract will be settled in favor of the insured.
Adjustable Life - correct answer-Life insurance that permits changed in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - correct answer-A representative of an insurance company who investigates and
acts on behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - correct answer-An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Adult Day Care - correct answer-A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
Adverse Selection - correct answer-The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower probability.
Agency - correct answer-An insurance sales office or company.
, Agent - correct answer-An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.
Agent Appointment - correct answer-The authorization of an agent to act for or represent an
insurer.
Agent's Authority - correct answer-Special powers granted to an agent by his or her agency
contract.
Aleatory - correct 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 the the amount the insurer will pay in the event of a loss.
Alien Insurer - correct answer-An insurance company that is incorporated outside the United
States.
Annual Statement - correct answer-A detailed financial report that an insurance company
must submit every year to the insurance department of state in which it conducts business.
Annuity - correct answer-A contract that provides income for a specified period of years, or
for life.
Apparent Authority - correct answer-The appearance of the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances of the principal
created.
Applicant - correct answer-A person making applications for, or offering himself, herself or
another to be insured under an insurance contract.
Appication - correct answer-A document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the insurer.
Assignment - correct answer-The transfer of ownership rights of a life insurance policy from
one person to another.
Attained Age - correct answer-The age of the insured at a determined date.
Attending Physician's Statement (APS) - correct answer-A statement usually obtained from
the applicant's doctor.
Authorized (Admitted) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Avoidance - correct answer-A method of dealing with risk by deliberately keeping away from
it (ex. if a person wanted to avoid risk of being killed in airplane crash they may never fly)
Basic Illustration - correct answer-A ledger or proposal used in the sale of a life insurance
policy that shows both guaranteed and non-guaranteed elements.
