Illinois Life & Health Insurance Exam With
complete solutions 2024/2025
Accelerated Benefits - ANSWER-Riders attached to life insurance policies that
allow death benefits to be used to cover nursing or convalescent home expenses
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
accidental death insurance - ANSWER-an insurance policy that provides payment
if the insureds death is the result of an accident
accumulation period - ANSWER-the time before an annuitants retirement during
which the annuitant is making payments or investments in the annuity
actual cash value (acv) - ANSWER-the required amount to pay damages or for
property loss. This amount is calculated based on the properties current
replacement value minus depreciation
adhesion - ANSWER-a contract offered on a take it or leave it basis by an insurer,
in which the insureds 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 - ANSWER-life insurance that permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment
period
,adjuster - ANSWER-a representative of an insurance company who investigates
and acts not he behalf of the company to obtain agreements for the amount of the
insurance claim
administrator - ANSWER-an individual appointed by a court as a fiduciary to
settle the financial affairs and estate of a deceased person
admitted (authorized) insurer - ANSWER-an insurance company authorized and
licensed to transact business in a particular state
adverse selection - 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 - ANSWER-an insurance sales office or company
agent - ANSWER-an individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer
agent appointment - ANSWER-the authorization of an agent to act for or represent
and insurer
agents authority - ANSWER-special powers granted to an agent by his or her
agency contract
aleatory - 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 to the amount the insurer will pay in the event of a loss
alien insurer - ANSWER-an insurance company that is incorporated outside the
united states
annual statement - ANSWER-a detailed financial report that an insurance
company must submit every year to the insurance department of states in which
it conducts business
, annuity - ANSWER-a contract that provides income for a specified period of years
or life
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
applicant - ANSWER-a person making application for, or offering himself, herself
or another to be insured under an insurance contract
application - ANSWER-a document that provides information for underwriting
purposes. after the policy is issued, any unanswered questions are considered
waived by the insurer
assignment - ANSWER-the transfer of ownership rights of a life insurance policy
from one person to another
attained age - ANSWER-the age of the insured at a determined date
attending physicians statement (aps) - ANSWER-a statement usually obtained
from the applicants doctor
authorized (admitted) insurer - ANSWER-an insurance company authorized and
licensed to transact business in a particular state
avoidance - ANSWER-a method of dealing with risk by deliberately keeping away
form it (ex. if a person wanted to avoid the risk of being killed in an airplane
crash, he or she might choose to never fly in a plane)
basic illustration - ANSWER-a ledger or proposal used in the sale of a life
insurance policy that shows both guaranteed and nonguarenteed elements
beneficiary - ANSWER-the person who receives the proceeds from the policy
when the insured dies
complete solutions 2024/2025
Accelerated Benefits - ANSWER-Riders attached to life insurance policies that
allow death benefits to be used to cover nursing or convalescent home expenses
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
accidental death insurance - ANSWER-an insurance policy that provides payment
if the insureds death is the result of an accident
accumulation period - ANSWER-the time before an annuitants retirement during
which the annuitant is making payments or investments in the annuity
actual cash value (acv) - ANSWER-the required amount to pay damages or for
property loss. This amount is calculated based on the properties current
replacement value minus depreciation
adhesion - ANSWER-a contract offered on a take it or leave it basis by an insurer,
in which the insureds 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 - ANSWER-life insurance that permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment
period
,adjuster - ANSWER-a representative of an insurance company who investigates
and acts not he behalf of the company to obtain agreements for the amount of the
insurance claim
administrator - ANSWER-an individual appointed by a court as a fiduciary to
settle the financial affairs and estate of a deceased person
admitted (authorized) insurer - ANSWER-an insurance company authorized and
licensed to transact business in a particular state
adverse selection - 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 - ANSWER-an insurance sales office or company
agent - ANSWER-an individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer
agent appointment - ANSWER-the authorization of an agent to act for or represent
and insurer
agents authority - ANSWER-special powers granted to an agent by his or her
agency contract
aleatory - 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 to the amount the insurer will pay in the event of a loss
alien insurer - ANSWER-an insurance company that is incorporated outside the
united states
annual statement - ANSWER-a detailed financial report that an insurance
company must submit every year to the insurance department of states in which
it conducts business
, annuity - ANSWER-a contract that provides income for a specified period of years
or life
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
applicant - ANSWER-a person making application for, or offering himself, herself
or another to be insured under an insurance contract
application - ANSWER-a document that provides information for underwriting
purposes. after the policy is issued, any unanswered questions are considered
waived by the insurer
assignment - ANSWER-the transfer of ownership rights of a life insurance policy
from one person to another
attained age - ANSWER-the age of the insured at a determined date
attending physicians statement (aps) - ANSWER-a statement usually obtained
from the applicants doctor
authorized (admitted) insurer - ANSWER-an insurance company authorized and
licensed to transact business in a particular state
avoidance - ANSWER-a method of dealing with risk by deliberately keeping away
form it (ex. if a person wanted to avoid the risk of being killed in an airplane
crash, he or she might choose to never fly in a plane)
basic illustration - ANSWER-a ledger or proposal used in the sale of a life
insurance policy that shows both guaranteed and nonguarenteed elements
beneficiary - ANSWER-the person who receives the proceeds from the policy
when the insured dies
