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Primerica Life Flashcards

Terms in this set (108)

401 K Plan
A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars.
Absolute Assignment v. Collateral Assignment
Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policy-owner.
Collateral: A temporary and/or revocable transfer of benefits by the policy-owner.
Accelerated Death Benefit
Policy provision that allows full or partial payment of the policy's death benefit before the insured's death if he/she is terminally ill.
Accidental Death Benefit
An extra cost rider that requires the insurance company to pay an additional benefit in the event that the insured dies within 90 days of an accident as a direct result of the accident.
Accumulate at Interest
The Dividend Option where the policy-owner leaves the dividends with the insurer to invest and earn interest.
Adhesion
Since the insurer created all the documents of the contract, any ambiguities will be settled in favor of the insured. Since the insurer wrote the contract they are stuck with it.
Adverse Selection
The tendency for less favorable risks to seek or continue insurance to a greater extent than more favorable risks.
Agency Agreement or Agency Contract
A legal document containing the terms of the agreement between the agent and the insurance company. It clearly defines what an agent can and cannot do, and how he/she will be compensated.
Agent Authorities
Expressed: Power or authority specifically granted in writing to an agent by the insurance company in their Agency Agreement.
Apparent: Power or authority that the public reasonably assumes an agent has based upon his/her actions.
Implied: Power or authority that is not expressly granted by the company but that an agent can assume or that are implied he/she has in order to transact insurance business.
Agent's Report
A written report from the agent submitted to the insurer along with the application disclosing what the agent knows, observed, or learned about the proposed insured's risks.
Agent/Producer
Anyone who sells or aids in the selling of insurance. Legally represents the company.
Aleatory
Unequal exchange of value. One party may obtain a far greater value than the other under the contract.
Annual Renewable Term
A Term Life Insurance contract which gives the policyowner the option to renew the policy each year without showing proof of insurability. Premiums increase at each renewal.
Annuitant
The person that buys an annuity may or may not be an annuity's policyowner.
Annuity
A contract/policy that guarantees to pay income for a specified period of time or for the life of the annuitant. Designed to prevent people from outliving their savings.
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