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Questions And Answers Latest Updated 202 and more Exams Nursing in PDF only on Docsity! New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 1 | 37 1. Accelerated Benefits - answers>Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses. 2. Accident - answers>An unplanned, unforeseen event which occurs suddenly and at an unspecified place. Accident Insurance - A type of insurance that protects the insured against loss due to accidental bodily injury. 3. Accidental Bodily Injury - answers>Unplanned, unforeseen traumatic injury to the body. 4. Accidental Death and Dismemberment (AD&D) - answers>An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses two limbs due to an accident. 5. Accidental Death Benefits - answers>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. 6. Accidental Death Insurance - answers>An insurance policy that provides payment if the insured's death is the result of an accident. 7. Accumulation Period - answers>The time over which the annuitant makes payments or investments in an annuity, and when those payments earn interest tax deferred. 8. Acquired Immunodeficiency Syndrome (AIDS) - answers>An infectious and incurable disease caused by the human immunodeficiency virus (HIV). New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 2 | 37 9. Activities of Daily Living (ADLs) - answers>Activities individuals must do every day such as moving about, getting dressed, eating, bathing, etc. 10. Actual Cash Value (ACV) - answers>The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation. 11. Actual Charge - answers>The amount a physician or supplier actually bills for a particular service or supply. Actuary - A person trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurance; a person who, on behalf of the company, determines the mathematical probability of loss. 12. Adhesion - answers>A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. 13. Adjustable Life - answers>Life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period. 14. Adjuster - answers>A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim. 15. Administrator - answers>An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person. 16. Admitted (Authorized) Insurer - answers>An insurance company authorized and licensed to transact business in a particular state. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 5 | 37 34. Authorized (Admitted) Insurer - answers>An insurance company authorized and licensed to transact business in a particular state. 35. Avoidance - answers>A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane). 36. Back End Load - answers>a fee charged at the time of a sale, transfer or withdrawal from an annuity or a life insurance policy. 37. Basic Hospital Expense Insurance - answers>Coverage that provides benefits for room, board and miscellaneous hospital expenses for a certain number of days during a hospital stay. 38. Basic Illustration - answers>A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements. 39. Basic Medical Expense Insurance - answers>Coverage for doctor visits, x-rays, lab tests, and emergency room visits; benefits, however, are limited to specified dollar amounts. 40. Beneficiary - answers>The person who receives the proceeds from the policy when the insured dies. Benefit Period - The length of time over which the insurance benefits will be paid for each illness, disability or hospital stay. 41. Binder (Binding Receipt) - answers>A temporary contract that puts an insurance policy into force before the premium has been paid. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 6 | 37 42. Birthday Rule - answers>The method of determining primary coverage for a dependent child, under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary. 43. Blanket Medical Insurance - answers>A policy that provides benefits for all medical costs, including doctor visits, hospitalization, and drugs. 44. Boycott - answers>An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions. 45. Broker - answers>An individual who represents an insured in the process of purchasing and negotiating a contract of insurance. 46. Buy-Sell Agreement - answers>A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. 47. Buyer's Guide - answers>A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. 48. Cafeteria Plan - answers>A selection of health care benefits from which an employee may choose the ones that he/she needs. 49. Capital Amount - answers>A percentage of the principal amount of a policy paid to the insured if he/she suffered the loss of an appendage. 50. Carriers - answers>Organizations that process claims and pay benefits in an insurance policy New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 7 | 37 51. Cash Value - answers>The amount to which a policyowner is entitled if the policy is surrendered before maturity. 52. Cease and Desist Order - answers>A demand of a person to stop committing an action that is in violation of a provision. 53. Certificate - answers>A statement (or booklet) that confirms that a policy has been written and that describes the coverage in general. 54. Certificate of Authority - answers>A document that authorizes a company to start conducting business and 55. specifies the kind(s) of insurance a company can transact. It is illegal for an insurance company to transact insurance without this certificate. - answers> 56. Certificate of Insurance - answers>A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. 57. Claim - answers>A request for payment of the benefits provided by an insurance contract. 58. Coercion - answers>An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance. 59. Coinsurance - answers>An agreement between an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 10 | 37 75. Countersignature - answers>The act of signing an insurance policy by a licensed resident agent. 76. Coverage - answers>The inclusion of causes of loss (perils) which are covered within a scope of a policy. Credit Life Insurance - A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor. 77. CSO Table - answers>(The Commissioner's Standard Ordinary Table) A mortality table used in life insurance that mathematically predicts the likelihood of death. 78. Custodial Care-Care that is rendered to help an insured complete his/her activities of daily living. - answers> 79. Death Benefit - answers>The amount payable upon the death of the person whose life is insured. 80. Decreasing Term - answers>A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy. 81. Deductible - answers>The portion of the loss that is to be paid by the insured before any claim benefits may be paid by the insurer. 82. Defamation - answers>An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation. 83. Dependent - answers>A person who relies on another for support and maintenance. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 11 | 37 84. Director (Commissioner, Superintendent) - answers>The head of the state department of insurance. 85. Disability - answers>A physical or mental impairment, either congenital or resulting from an injury or sickness. 86. Disability Income Insurance - answers>Health insurance that provides periodic payments to replace an insured's income when he/she is injured or ill. 87. Disclosure - answers>An act of identifying the name of the producer, representative or firm, limited insurance representative, or temporary insurance producer on any policy solicitation. 88. Domestic Insurer - answers>An insurance company that conducts business in the state of incorporation. Domicile of Insurer -Insurer's location of incorporation and the legal ability to write business in a state. 89. Dread (Specified) Disease Policy - answers>A policy with a high maximum limit that covers certain diseases named in the contract (such as polio and meningitis). 90. Dual Choice - answers>A federal requirement that employers who have 25 or more employees, who are within the service area of a qualified HMO, who pay minimum wage, and offer a health plan, must offer HMO coverage as well as an indemnity plan. 91. Earned Premium - answers>The amount of the premium for which the policy protection has been given. 92. Effective Date - answers>The date when an insurance policy begins (also known as the inception date). New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 12 | 37 93. Eligibility Period - answers>The period of time in which an employee may enroll in a group health care plan without having to provide evidence of insurability. 94. Elimination Period - answers>A waiting period that is imposed on the insured from the onset of disability until benefit payments begin. 95. Emergency - answers>An injury or disease which occurs suddenly and requires treatment within 24 hours. 96. Employee Retirement Income Security Act (ERISA) - answers>The act that stipulates federal standards for private pension plans. 97. Endodontics - answers>An area of dentistry that deals with diagnosis, prevention and treatment of the dental pulp within natural teeth at the root canal. 98. Endorsement - answers>A form changing the provisions of and attached to a life insurance policy (also known as a rider). 99. Endow - answers>to reach the maturity date or time at which the face amount equals cash values. 100. Enrollment Period - answers>The amount of time an employee has to sign up for a contributory group health plan. 101. Errors and Omissions Policy (E&O) - answers>A professional liability insurance that protects the insurer from claims by the insured for errors or oversights on the part of the insurer. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 15 | 37 119. Flexible Spending Account (FSA) - answers>A salary reduction cafeteria plan that uses employee funds to provide various types of health care benefits. 120. Foreign Insurer - answers>An insurance company that is incorporated in another state. 121. Fraternal Benefit Societies - answers>Life or health insurance companies formed to provide insurance for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government. 122. Fraud - answers>Intentional misrepresentation or deceit with the intent to induce a person to part with something of value. 123. Free Look - answers>A period of time, usually required by law, during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason. 124. Front-End Load - answers>a fee or commission charged at the time of purchase of an annuity or a security. Gatekeeper Model -A model of HMO and PPO organizations that uses the insured's primary care physician (the gatekeeper) as the initial contact for the patient for medical care and for referrals. Grace Period -Period of time after the premium due date during which premiums may still be paid, and the policy and its riders remain in force. 125. Group Disability Insurance - answers>A type of insurance that covers a group of individuals against loss of pay due to accident or sickness. 126. Group Health Insurance - answers>Health coverage provided to members of a group. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 16 | 37 127. Group Life - answers>Life insurance provided for members of a group. 128. Hazard - answers>A circumstance that increases the likelihood of a loss. 129. Hazard, Moral - answers>The effect of a person's reputation, character, living habits, etc. on his/her insurability. 130. Hazard, Morale - answers>The effect a person's indifference concerning loss has on the risk to be insured. 131. Hazard, Physical - answers>A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth. 132. Health Insurance - answers>Protection against loss due to sickness or bodily injury. 133. Health Maintenance Organization (HMO) - answers>A prepaid medical service plan in which specified medical service providers contract with the HMO to provide services. The focus of the HMO is preventive medicine. 134. Health Reimbursement Accounts (HRAs) - answers>Plans that allow employers to set aside funds for reimbursing employees for qualified medical expenses. 135. Health Savings Accounts (HSAs) - answers>Plans designed to help individuals save for qualified health expenses. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 17 | 37 136. Home Health Agency - answers>An entity certified by the insured's health plan that provides health care services under contract. 137. Home Health Care - answers>Type of care in which part-time nursing or home health aide services, speech therapy, physical or occupational therapy services are given in the home of the insured. 138. Home Health Services - answers>A covered expense under Part A of Medicare in which a licensed home health agency provides home health care to an insured. 139. Hospice - answers>A facility for the terminally ill that provides supportive care such as pain relief and symptom management to the patient and his/her family. Hospice care is covered under Part A of Medicare. 140. Hospital Confinement Rider - answers>An optional disability income rider that waives the elimination period when an insured is hospitalized as an inpatient. 141. Implied Authority - answers>Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. 142. Income Replacement Contracts - answers>Policies which replace a certain percentage of the insured's pure loss of income due to a covered accident or sickness. 143. Indemnify - answers>To restore the insured to the same condition as prior to loss with no intent of loss or gain. 144. Illustration - answers>A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 20 | 37 161. Legal Reserve - answers>The accounting measurement of an insurer's future obligations to pay claims to policyowners. 162. Level Premium - answers>A policy premium that remains the same over the period of time premiums are paid. 163. Life Expectancy - answers>Average number of years remaining for a person of a given age to live, as shown on the mortality table. 164. Limited-Pay Whole Life - answers>A variation of whole life insurance that charges a level annual premium and provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited-pay life is designed so that the premiums for coverage will be completely paid- up well before age 100. 165. Limited Policies - answers>Health insurance policies that cover only specific accidents or diseases. 166. Limiting Charge - answers>The maximum amount a physician may charge a Medicare beneficiary for a covered service if the physician does not accept assignment of the Medicare approved amount. Liquidation -Selling assets as a method of raising capital. 167. Living Benefits Rider - answers>A rider attached to a life insurance policy that provides LTC benefits or benefits for the terminally ill by using available life insurance benefits. 168. Lloyd's Associations - answers>Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 21 | 37 169. Loan Value - answers>The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral. 170. Long-Term Care (LTC) - answers>Health and social services provided under the supervision of physicians and medical health professionals for persons with chronic diseases or disabilities. Care is usually provided in a Long-Term Care Facility which is a state licensed facility that provides services. 171. Long-Term Disability Insurance - answers>A type of individual or group insurance that provides coverage for illness until the insured reaches age 65 and for life in the case of an accident. 172. Loss - answers>The reduction, decrease, or disappearance of value of the person or property insured in a policy, by a peril insured against. 173. Loss of Income Insurance - answers>Insurance that pays benefits for inability to work because of disability resulting from accidental bodily injury or sickness. 174. Lump Sum - answers>Settlement method that pays the beneficiary the entire proceeds of a life insurance policy in one payment rather than in installments. 175. Major Medical Insurance - answers>A type of health insurance that usually carries a large deductible and pays covered expenses up to a high limit whether the insured is in or out of the hospital. 176. Maturity Date -The date when the face amount of the life insurance becomes payable. Medicaid - answers>A medical benefits program jointly administered by the individual states and the federal government. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 22 | 37 177. Medical Expense Insurance - answers>A type of insurance that pays benefits for medical, surgical, and hospital costs. 178. Medical Information Bureau (MIB) - answers>An information database that stores the health histories of individuals who have applied for insurance in the past. Most insurance companies subscribe to this database for underwriting purposes. 179. Medical Savings Account - answers>An employer-funded account linked to a high deductible medical insurance plan. 180. Medicare - answers>The United States federal government plan for paying certain hospital and medical expenses for persons who qualify. 181. Medicare Supplement Insurance - answers>A type of individual or group insurance that fills the gaps in the protection provided by Medicare, but that cannot duplicate any Medicare benefits. 182. Medigap - answers>Medicare supplement plans issued by private insurance companies that are designed to fill some of the gaps in Medicare. 183. Misrepresentation - answers>A false statement or lie that can render the contract void. 184. Mode of Payment - answers>The method of premium payment, whether annually, semiannually, quarterly, or monthly. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 25 | 37 201. Option - answers>A choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values. 202. Oral Surgery - answers>Operative treatment of the mouth such as extractions of teeth and related surgical treatment. 203. Orthodontics - answers>A special field in dentistry which involves treatment of natural teeth to prevent and/or correct dental anomalies with braces or appliances. 204. Out-of-Pocket Costs - answers>Amounts an insured must pay for coinsurance and deductibles before the insurer will pay its portion. 205. Over Insurance - answers>An excessive amount of insurance that would result in overpayment to the insured in the event of a loss. 206. Paid-Up Insurance - answers>A policy on which all premiums have been paid but which has not matured due either to death or endowment. 207. Parol - answers>Legal term that distinguishes oral statements from written statements. 208. Parol Evidence Rule - answers>A rule that states a contract may not be altered without written consent of both parties; in other words, the contract may not be altered by an oral agreement. 209. Partial Disability - answers>Ability to perform some, but not all, of the duties of the insured's occupation as a result of injury or sickness. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 26 | 37 210. Participating Policies (Par) - answers>Insurance that pays dividends to policyholders. 211. Payment of Claims - answers>A provision that specifies to whom claims payments are to be made. 212. Payor Benefit - answers>A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor. 213. Peril - answers>The cause of a possible loss. 214. Periodontics - answers>A specialty of dentistry that involves treatment of the surrounding and supporting tissue of the teeth such as treatment for gum disease. 215. Permanent Disability - answers>Disability from which the insured does not recover. 216. Permanent Life Insurance - answers>A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid. 217. Persistency - answers>The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 27 | 37 218. Personal Contract - answers>An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest. 219. Physical Exam and Autopsy - answers>A provision that allows an insurer, at its own expense, to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law. 220. Policy Loan - answers>A nonforfeiture value in which an insurer loans a part or all of the cash value of the policy assigned as security for the loan to the policyowner. 221. Policyholder - answers>The person who has possession of the policy, usually the insured. 222. Policyowner - answers>The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured. 223. Pre-Existing Condition - answers>A physical condition that existed before the effective date of the policy, usually excluded from coverage. 224. Preferred Provider Organization (PPO) - answers>An organization of medical professionals and hospitals who provide services to an insurance company's clients for a set fee. 225. Preferred Risk - answers>An insurance classification for applicants who have a lower expectation of incurring loss, and who, therefore, are covered at a reduced rate. 226. Premium - answers>A periodic payment to the insurance company to keep the policy in force. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 30 | 37 245. Reciprocity - answers>A situation in which two parties provide the same help or advantages to each other (for example, Producer A living in State A can transact business as a nonresident in State B if State B's resident producers can transact business in State A). 246. Recurrent Disability - answers>A policy provision that specifies the period of time during which the recurrence of an injury or illness will be considered a continuation of a prior period of disability. Reduction -Lessening the possibility or severity of a loss. 247. Reinsurance - answers>A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued. 248. Renewability Clause - answers>A clause that defines the insurance company's and the insured's right to cancel or renew coverage. 249. Renewable Term - answers>Insurance which can, at the election of the policyowner, be renewed at the end of a term without evidence of insurability. 250. Representations - answers>Statements made by the applicant on the insurance application that are believed to be true, but are not guaranteed to be true. 251. Rescission - answers>The termination of an insurance contract due either to material misrepresentation by the insured or by fraud, misrepresentation, or duress on the part of the agent/insurer. 252. Reserve - answers>An amount representing actual or potential liabilities kept by an insurer in a separate account to cover debts to policyholders. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 31 | 37 253. Residual Disability - answers>Type of disability income policy that provides benefits for loss of income when a person returns to work after a total disability, but is still not able to perform at the same level as before becoming disabled. 254. Respite Care - answers>A type of temporary health or medical care provided either by paid workers who come to the home or by a nursing facility where a patient stays to give a caregiver a short rest. 255. Restorative Care - answers>An area of dentistry that involves treatments that restore functional use to natural teeth such as fillings or crowns. 256. Retention - answers>A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company. 257. Rider - answers>Any supplemental agreement attached to and made a part of the policy indicating the policy expansion by additional coverage, or a waiver of a coverage or condition. 258. Right to Return (aka Free Look) - answers>A period of time, usually required by law, during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason. 259. Risk - answers>Uncertainty as to the outcome of an event when two or more possibilities exist. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 32 | 37 260. Risk, Pure - answers>The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change. 261. Risk Retention Group - answers>A liability insurance company owned by its members, which are exposed to similar liability risks by virtue of being in the same business or industry. 262. Risk, Speculative - answers>The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain. 263. Risk, Standard - answers>An applicant or insured who is considered to have an average probability of a loss based on health, vocation and lifestyle. 264. Risk, Substandard - answers>An applicant or insured who has a higher than normal probability of loss, and who may be subject to an increased premium. 265. Rollover - answers>Withdrawing the money from a qualified plan and placing it into another qualified plan. Secondary Beneficiary -The person who is named to receive benefits upon the death of the 266. insured if the (primary) first-named beneficiary is no longer alive or does not collect all the benefits due to his/her own death. - answers> 267. Service Plans - answers>Insurance plans where the health care services rendered are the benefits instead of monetary benefits. 268. Settlement Options - answers>Choices available to the insured/owner for distribution of insurance proceeds. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 35 | 37 285. Terminally Ill - answers>A patient who is expected to die within an amount of time specified in the policy. 286. Tertiary Beneficiary - answers>The third in line to receive the benefits of a life insurance policy. 287. Total Disability - answers>A condition which does not allow a person to perform the duties of any occupation for payment as a result of injury or sickness. 288. Transfer - answers>A basic principle of insurance under which the risk of financial loss is assigned to another party. 289. Twisting - answers>A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. 290. Underwriter - answers>A person who evaluates and classifies risks to accept or reject them on behalf of the insurer. 291. Underwriting - answers>The process of reviewing, accepting or rejecting applications for insurance. 292. Unearned Premium - answers>The portion of premium for which policy protection has not yet been given. 293. Unilateral Contract - answers>A contract that legally binds only one party to contractual obligations after the premium is paid. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 36 | 37 294. Universal Life - answers>A combination of a flexible premium and adjustable life insurance. 295. Utmost Good Faith - answers>The fair and equal bargaining by both parties in forming the contract, where the applicant must make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk. 296. Valued Contract - answers>A contract that pays a stated amount in the event of a loss (disability insurance/life insurance). 297. Viatical Settlement - answers>An arrangement that allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds when and where they are most needed, before death. 298. Waiting Period - answers>Time between the beginning of a disability and the start of disability insurance 299. benefits. - answers> 300. Waiver - answers>The voluntary abandonment of a known or legal right or advantage. 301. Waiver of Cost - answers>A disability rider, found in Universal Life Insurance, that waives the cost of the insurance but does not waive the cost of premiums necessary to accumulate cash values. 302. Waiver of Premium - answers>Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums. New York Life, Accident and Health Insurance Exam Questions And Answers Latest Updated 2024 Verified By Expert GRADED A+ P a g e 37 | 37 303. Warranty - answers>A material stipulation in the policy that if breached may void coverage. 304. Whole Life Insurance - answers>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. 305. Workers Compensation - answers>Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as the result of an on-the-job hazard.