Idaho Life Insurance UPDATED Exam Questions and CORRECT Answers
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Course
Idaho Life Insurance
Institution
Idaho Life Insurance
Idaho Life Insurance UPDATED Exam
Questions and CORRECT Answers
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 tha...
Idaho Life Insurance UPDATED Exam
Questions and CORRECT Answers
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.
Beneficiary - CORRECT ANSWER- The person who receives the proceeds from the policy
when the insured dies.
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