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MISSISSIPPI LIFE AND HEALTH INSURANCE
2025: REAL VERIFIED QUESTIONS & CORRECT
ANSWERS| PACK OF EXCELLENCE| THE
ULTIMATE KEY TO YOUR SUCCESS.
Absolute assignment - Correct Answer-Policy assignment under which the assignee (person to whom the policy is assigned) receives full control over the policy and also full rights to its benefits. Generally, when a policy is assigned to secure a debt, the owner retains all rights in the policy in excess of the debt, even though the assignment is absolute in form. (See assignment) Accelerated benefits rider - Correct Answer-A life insurance rider that allows for the early payment of some portion of the policies face amount should the insured suffers from a terminal i l l n e s s or injury. Acceptance - Correct Answer-(See offer and acceptance) Accidental bodily injury provision - Correct Answer-Disability income or accident policy provision that requires that the injury be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - Correct Answer- Insurance providing payment if the insured's death results from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or totally and irreversibly Accidental death benefit rider - Correct Answer-A life insurance policy rider providing for payment of an additional benefit when death occurs by accidental means. Accidental dismemberment - Correct Answer-Often defined as "the severance of limbs at or above the wrists or ankle joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered dismemberment. Accidental means provision - Correct Answer-Unforeseen, unexpected, unintended cause of an accident. Requirement of an accident-based policy that the cause of the mishap must be accidental for any claim to be payable. Accident and health insurance - Correct Answer-Under which benefits are payable in case of disease, accidental injury, or accidental death. Also called health insurance, personal health insurance, and sickness and accident insurance.
Administrative-services-only (ASO) Plan - Correct Answer- Arrangement under which an insurance company or an independent organization, for a fee, handles the administration of claims, benefits, and other administrative functionsfor a self-insured group. Admitted insurer - Correct Answer-An insurance company that has met the legal and financial requirements for operation within a given state. Adult day care - Correct Answer-Type of care (usually custodial) designed for individuals who require assistance with various activities of daily living, while their primary caregivers are absent. Offered in care centers. Adverse selection - Correct Answer-Selection "against the company." Tendency of less favorable insurance risks to seek or continue insurance to a greater extent than others. Also, tendency of policy owners to take advantage of favorable options in insurance contracts. Advertising Code - Correct Answer-Rules established by the National Association of Insurance Commissioners (NAIC) to regulate insurance advertising.
Agency - Correct Answer-Situation wherein one party (an agent) has the power to act for another (the principal) i n dealing with third parties. Agent - Correct Answer-Anyone not a duly licensed broker who solicits insurance or aids in placing risks, delivering policies, or collecting premiums on behalf of an insurance company. Agent's report - Correct Answer-The section of an insurance application where the agent reports personal observations about the applicant. Aleatory - Correct Answer-Feature of insurance contracts in that there is an element of chance for both parties and that the dollar given by the policyholder (premiums) and the insurer (benefits) may not be equal. Alien Insurer - Correct Answer-Company incorporated or organized under the laws of any foreign nation, providence, or territory.
Annuity unit - Correct Answer-The number of annuity units denotes the share of the funds an annuitant will receive from a variable annuity account after the accumulation period ends and benefits begin. A formula is used to convert accumulation units to annuity units. Any occupation - Correct Answer-A definition of total disability that requires that for disability income benefits to be payable, the insured must be unable to perform any job for which the insured is "reasonably suited by reason of education, training, or experience." Apparent authority - Correct Answer-The authority an agent appears to have, based on the principal's (the insurer's) actions, words, deeds, or because of circumstances the principal (the insurer) created. Application - Correct Answer-Form supplied by the insurance company, usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant.It issigned by the applicant and is part of the insurance policy if it is issued. It gives information to the home office underwriting department, so it may consider whether an insurance policy will be issued and, if so, in what classification and at what premium rate.
Appointment - Correct Answer-Authorization or certification of an agent to act for or represent an insurance company Approval receipt - Correct Answer-Rarely used today, a type of conditional receipt that provides that coverage is effective as of the date the application is approved (before the policy is delivered). Assessment mutual insurer - Correct Answer-An insurance company characterized by member-insureds who are assessed an individual portion of each loss that occurs. No premium payment is payable in advance. Assignee - Correct Answer-Person (including corporation, partnership, or other organization) to whom a right or rights under a policy are transferred by means of an assignment Assignment provision (health contracts) - Correct Answer- Commercial health policy provision that allows the policy owner to assign benefit payments from the insurer directly to the health care provider.
Average Indexed Monthly Earnings (AIME) - Correct Answer-The basis used for calculating the primary insurance amount (PIA) for Social Security benefits. Average Monthly Wage (AMW) - Correct Answer-The average wage base for computing virtually all Social Security benefits prior to Aviation exclusion - Correct Answer-Either attached by rider or included in standard policy language excepting from coverage certain deaths or disabilities due to aviation, such as "other than a fare-paying passenger." Backdating - Correct Answer-The practice of making a policy effective at an earlier date than the present. Basic medical expense policy - Correct Answer-Health insurance policy that provides "first dollar" benefitsfor specified (and limited) health care, such as hospitalization, surgery, or physician services. Characterized by limited benefit periods and relatively low coverage limits.
Beneficiary - Correct Answer-Person to whom the proceeds of a life or accident policy are payable when the insured dies. The various types of beneficiaries are primary beneficiaries (those first entitled to proceeds), secondary beneficiaries (those entitled to proceeds if no primary beneficiary isliving when the insured dies), and tertiary beneficiaries (those entitled to proceeds if no primary or secondary beneficiaries are alive when the insured dies). Benefit - Correct Answer-May be either money or a right to the policy owner upon the happening of the conditions set out in the policy. Benefit period - Correct Answer-Maximum length of time that insurance benefits will be paid for any one accident, illness, or hospital stay. Best's Insurance Report - Correct Answer-A guide, published by A.M. Best, Inc., that rates insurers' financial integrity and managerial and operational strengths. Binding receipt - Correct Answer-Given by a company upon an applicant's first premium payment.The policy, if approved, becomes effective from the date of the receipt.
Buyer's guides - Correct Answer-Informational consumer guide books that explain insurance policies and insurance concepts; in many states, they are required to be given to applicants when certain types of coverages are being considere Buy-sell agreement - Correct Answer-Buy-sell agreement Cafeteria plan - Correct Answer-Employee benefit arrangements in which employees can select from a range of benefits. Cancellable contract - Correct Answer-Health insurance contract that may be terminated by the company or that is renewable at its option. Capital sum - Correct Answer-Amount provided for accidental dismemberment or loss of eyesight. Indemnities for loss of one member or sight of one eye are percentages of the capital sum. Career agency system - Correct Answer-A method of marketing, selling, and distributing insurance, it is represented by agencies or branch offices committed to the ongoing recruitment and development of career agents.
Case management - Correct Answer-The professional arrangement and coordination of health services through assessment, service plan development, and monitoring. Cash or deferred arrangements - Correct Answer-A qualified employer retirement plan under which employees can defer amounts of their salaries into a retirement plan. These amounts are not included in the employee's grossincome and so are tax deferred. Also called (k) plans. Cash refund annuity - Correct Answer-Provides that, upon the death of an annuitant before payments totaling the purchase price have been made, the excess of the amount paid by the purchaser over the total annuity payments received will be paid in one sum to designated beneficiaries. Cash surrender option - Correct Answer-A nonforfeiture option that allows whole life insurance policy ownersto receive a payout of their policy's cash values. Cash surrender value - Correct Answer-Amount available to the owner when a life insurance policy issurrendered to the company. During the early policy years, the cash value is the reserve less a "surrender charge"; in later policy
This condition may be associated with a cleft palate. Also called a hare lip. Cleft palate - Correct Answer-A congenital furrow or groove in the roof of the mouth that results from incomplete embryonic development.This condition may be associated with a cleft lip. Close corporation - Correct Answer-A corporation owned by a small group of stockholders, each of whom usually has a voice in operating the business. COBRA (Consolidated Omnibus Budget Reconciliation Act) - Correct Answer-Extends group health coverage to terminated employees and their families Coinsurance (percentage participation) - Correct Answer-Principle under which the company insures only part of the potential loss, the policyowners paying the other part. For instance, in a major medical policy, the company may agree to pay % of the insured expenses, with the insured to pay the other %. Collateral assignment - Correct Answer-Assignment of a policy to a creditor as security for a debt. The creditor is entitled to be
reimbursed out of policy proceeds for the amount owed. The beneficiary is entitled to any excess of policy proceeds over the amount due the creditor in the event of the insured's death. Combination company - Correct Answer-Company whose agents sell both weekly premium life and health insurance and ordinary life insurance. Also called a multi-line company. Commercial health insurers - Correct Answer-Insurance companies that function on the reimbursement approach, which allows policy owners to seek medical treatment then submit the charges to the insurer for reimbursement. Commissioner - Correct Answer-Head of a state insurance department; public officer charged with supervising the insurance business in a state and administrating insurance laws. Called "superintendent" in some states, "director" in others. Commissioner's Standard Ordinary (CSO) Table - Correct Answer-Table of mortality based on intercompany experience over a period of time, which is legally recognized as the mortality basis for computing maximum reserves on policies issued within past years
Conditionally renewable contract - Correct Answer-Health insurance policy providing that the insured may renew the contract from period to period, or continue it to a stated date or an advanced age, subject to the right of the insurer to decline renewal only under conditions defined in the contract. Conditional receipt - Correct Answer-Given to the policy owners when they pay a premium at time of application.Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt. Consideration clause - Correct Answer-The part of an insurance contract setting forth the amount of initial and renewal premiums and frequency of future payments. , Consideration - Correct Answer-Element of a binding contract; acceptance by the company of payment of the premium and statements made by the prospective insured in the application. Contestable period - Correct Answer-Period during which the company may contest a claim on a policy because of misleading or incomplete information in the application.
Contingent beneficiary - Correct Answer-Person(s) named to receive proceeds in case the original beneficiary is not alive. Also referred to as secondary Continuing care - Correct Answer-Type of health or medical care designed to provide a benefit for elderly individuals who live in a retirement community; addresses full- time needs, both social and medical. Also known as residential care. Contract - Correct Answer-An agreement enforceable by law whereby one party binds itself to certain promises or deeds. Contract of agency - Correct Answer-A legal document containing the terms of the contract between the agent and company, signed by both parties. Also called agency agreement. Contributory plan - Correct Answer-Group insurance plan issued to an employer under which both the employer and employees contribute to the cost of the plan. Generally, % of the eligible employees must be insured. (See noncontributory plan)
