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New Hampshire Accident and Health Insurance Exam
Questions and Answers|2025 Update|100% Correct.
Ahesion - (answers)An insurance policy is described as this because it is drafted by
the insurer and accepted by the applicant. In other words, the insurer "draws up"
all the contract language and the applicant must act according to the language of
the agreement.
Aleatory - (answers)An insurance policy can be described as this because one
party may recover more in value than he or she has parted with based upon a
possible future event. A contract characterized by an unequal payment or
consideration.
Blue Cross/Blue Shield - (answers)Community or service organizations that
provide health care to subscribers. This covers hospital charges on a UCR basis.
They function on either a for-profit or nonprofit basis depending upon State
legislation in a particular locale. They receive favorable tax treatment as well since
many states exempt them from premium and income taxation.
CHAMPUS - (answers)Civilian Health and Medical Program of the Uniformed
Services. A government organization that provides health care benefits for the
families of members of the armed services.
Conditional - (answers)An insurance policy may be described as this since it
depends upon the performance of the parties arriving at an agreement.
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Competent Parties - (answers)The parties arriving at an agreement must possess
the capacity to enter into that contract. In other words, the parties involved in the
agreement must be competent to enter into that agreement.
Consideration - (answers)In order for an insurance agreement to be binding, both
parties must provide each other with something of value. The premiums paid and
the representations made on the application. The promise to pay legitimate
claims for coverage provided during the policy period.
Contract Law - (answers)States that elements that must be present in order for
any contract to be legal and enforceable in a court of law include: (1) Offer and
Acceptance; (2) Consideration; (3) Competent Parties; and (4) legal purpose.
Employer Plans - (answers)These plans provide coverage for employees and their
dependents. Employers administer and manage their health related exposures by
using commercial insurers or other entities which provide health care services
such as an HMO or PPO. May be self-funded or self-insured.
Errors and Omissions - (answers)When a producer makes an unintentional error
or honest mistake. Insurer can purchase this type of insurance to cover the
malpractice or negligence of producers.
Estoppel - (answers)A legal principle involving a broken promise. It prohibits an
insurer from denying a claim due to specific actions by the insurer or its
representatives or due to inaction by the insurer
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Exclusions - (answers)Provision in an insurance policy eliminating coverage for
certain risks or limiting coverage
HMO - (answers)A type of managed care plan that does not provide coverage for
treatment outside of the managed care network since they required subscribers
to utilize the services of pre-approved providers. They combine health care
delivery with prepaid financing.
Legal Purpose - (answers)A contract must be in existence with the public interest
in mind.
Legal Capacity - (answers)Requirement that a party to a contract be of legal age
and have requisite mental capacity to enter into contract.
MET/MEWA - (answers)These plans provide a mechanism for the employees of
small businesses to band together to purchase more affordable group health
insurance.
No Loss / No Gain Provisions - (answers)These are state laws that supposedly
prevent a policy owner from profiting from the purchase of insurance. They state
that the purpose of insurance policies are primarily to indemnify a person for a
loss.
Offer and Acceptance - (answers)Also known as an agreement. A valid offer and
unconditional acceptance must be present in order for the contract to be
enforceable. Genuine Assent must exist.
New Hampshire Accident and Health Insurance Exam
Questions and Answers|2025 Update|100% Correct.
Ahesion - (answers)An insurance policy is described as this because it is drafted by
the insurer and accepted by the applicant. In other words, the insurer "draws up"
all the contract language and the applicant must act according to the language of
the agreement.
Aleatory - (answers)An insurance policy can be described as this because one
party may recover more in value than he or she has parted with based upon a
possible future event. A contract characterized by an unequal payment or
consideration.
Blue Cross/Blue Shield - (answers)Community or service organizations that
provide health care to subscribers. This covers hospital charges on a UCR basis.
They function on either a for-profit or nonprofit basis depending upon State
legislation in a particular locale. They receive favorable tax treatment as well since
many states exempt them from premium and income taxation.
CHAMPUS - (answers)Civilian Health and Medical Program of the Uniformed
Services. A government organization that provides health care benefits for the
families of members of the armed services.
Conditional - (answers)An insurance policy may be described as this since it
depends upon the performance of the parties arriving at an agreement.
,2|Page
Competent Parties - (answers)The parties arriving at an agreement must possess
the capacity to enter into that contract. In other words, the parties involved in the
agreement must be competent to enter into that agreement.
Consideration - (answers)In order for an insurance agreement to be binding, both
parties must provide each other with something of value. The premiums paid and
the representations made on the application. The promise to pay legitimate
claims for coverage provided during the policy period.
Contract Law - (answers)States that elements that must be present in order for
any contract to be legal and enforceable in a court of law include: (1) Offer and
Acceptance; (2) Consideration; (3) Competent Parties; and (4) legal purpose.
Employer Plans - (answers)These plans provide coverage for employees and their
dependents. Employers administer and manage their health related exposures by
using commercial insurers or other entities which provide health care services
such as an HMO or PPO. May be self-funded or self-insured.
Errors and Omissions - (answers)When a producer makes an unintentional error
or honest mistake. Insurer can purchase this type of insurance to cover the
malpractice or negligence of producers.
Estoppel - (answers)A legal principle involving a broken promise. It prohibits an
insurer from denying a claim due to specific actions by the insurer or its
representatives or due to inaction by the insurer
, 3|Page
Exclusions - (answers)Provision in an insurance policy eliminating coverage for
certain risks or limiting coverage
HMO - (answers)A type of managed care plan that does not provide coverage for
treatment outside of the managed care network since they required subscribers
to utilize the services of pre-approved providers. They combine health care
delivery with prepaid financing.
Legal Purpose - (answers)A contract must be in existence with the public interest
in mind.
Legal Capacity - (answers)Requirement that a party to a contract be of legal age
and have requisite mental capacity to enter into contract.
MET/MEWA - (answers)These plans provide a mechanism for the employees of
small businesses to band together to purchase more affordable group health
insurance.
No Loss / No Gain Provisions - (answers)These are state laws that supposedly
prevent a policy owner from profiting from the purchase of insurance. They state
that the purpose of insurance policies are primarily to indemnify a person for a
loss.
Offer and Acceptance - (answers)Also known as an agreement. A valid offer and
unconditional acceptance must be present in order for the contract to be
enforceable. Genuine Assent must exist.
