TX-LAH05 - General Lines - Life, Accident
and Health newest exam 2025 studyguide
with 100% correct answers
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 (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).
Back-End Load Correct Answer a fee charged at the time
of a sale, transfer or withdrawal from an annuity or a life
insurance policy.
Basic Hospital Expense Insurance Correct Answer
Coverage that provides benefits for room, board and
miscellaneous hospital expenses for a certain number of
days during a hospital stay.
Basic Illustration Correct Answer A ledger or proposal
used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements,
Basic Medical Expense Insurance Correct Answer
Coverage for doctor visits, x-rays, lab tests, and
,emergency room visits: benefits, however, are limited to
specified dollar amounts.
Beneficiary Correct Answer The person who receives the
proceeds from the policy when the insured dies.
Benefit Period Correct Answer The length of time over
which the insurance benefits will be paid for each illness,
disability or hospital stay.
Binder (Binding Receipt) Correct Answer A temporary
contract that puts an insurance policy into force before the
premium has been paid.
Birthday Rule Correct Answer 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.
Blanket Medical Insurance Correct Answer A policy that
provides benefits for all medical costs, including doctor
visits hospitalization, and drugs.
Boycott Correct Answer An unfair trade practice in which
one person refuses to do business with another until he or
she agrees to certain conditions
Broker Correct Answer An individual who represents an
insured in the process of purchasing and negotiating a
contract of insurance.
,Buy-Sell Agreement Correct Answer A legal contract that
determines what will be done with a business in the event
that an owner dies or becomes disabled.
Buyer's Guide Correct Answer A booklet that describes
insurance policies and concepts, and provides general
information to help an applicant make an informed
decision.
Cafeteria Plan Correct Answer A selection of health care
benefits from which an employee may choose the ones
that he/she needs.
Capital Amount Correct Answer A percentage of the
principal amount of a policy paid to the insured if he/she
suffered the loss of an appendage.
Carriers Correct Answer Organizations that process
claims and pay benefits in an insurance policy
Cash Value Correct Answer The amount to which a
policyowner is entitled if the policy is surrendered before
maturity.
Cease and Desist Order Correct Answer A demand of a
person to stop committing an action that is in violation of a
provision.
Certificate Correct Answer A statement (or booklet) that
confirms that a policy has been written and that describes
the coverage in general.
, Certificate of Authority Correct Answer A document that
authorizes a company to start conducting business and
specifies the kind(s) of insurance a company can transact.
It is illegal for an insurance company to transact insurance
without this certificate.
Certificate of Insurance Correct Answer A legal document
that indicates that an insurance policy has been issued,
and that states both the amounts and types of insurance
provided.
Claim Correct Answer A request for payment of the
benefits provided by an insurance contract.
Coercion Correct Answer An unfair trade practice in which
an insurer uses physical or mental force to persuade an
applicant to buy insurance.
Coinsurance Correct Answer 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.
Coinsurance Clause Correct Answer A provision that
states that the insurer and the insured will share the
losses covered by the policy in a proportion agreed upon
in advance.
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