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Terms in this set (47)
The insurance company
Periodic payments to keep the CB policy and the insurer
The legal contract between insurer and the insured
The chance that loss Might occur
The insurer risk
The cause of loss (the three reason loss occurred )
A reduction in an Asset ( the reason of claim filed )
Restrict benefits to specific accidents or deseases,such as travel polices, dread disease policies and so forth.
Provides coverage for specific kinds of accident or illnesses, such as injuries received as a result of travel accidents or medical expenses stemming from a specific disease (see specific risk police )
Limit risk policy
An association of individuals and company's that underwrite insurance on their own accounts and provide specialized coverages.
Loyds of London
Amount added to net premiums to cover the. Companies operating expenses and contingencies; include the cost of securing new business: collection expenses, and general management expenses, excess of gross premiums over net premiums.
Determinable amount that can be borrowed from the issuing company by the policy owner using the value of the life insurance policy as collateral .
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)
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 illness orinjury.
Accelerated benefits rider
Disability income or accident policy provision that requires that the injury be accidental in order
for benefits to be payable.
Accidental bodily injury provision
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 loses eyesight.
Accidental death and dismemberment (AD&D) :
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 loseseyesight.
Accidental death and dismemberment (AD&D)
A life insurance policy rider providing for payment of an additional benefit when death occurs by accidental means.
Accidental death benefit rider
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.
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.
Accidental means provision
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.
Accident and health insurance
Premiums an annuitant pays into annuities are credited as accumulation units. At the end of the accumulation period, accumulation units are converted to annuity units.
A life-threatening condition brought on by the human immunodeficiency virus; insurers must adhere to strict underwriting and claims guidelines in regard to AIDS risks and AIDS-relatedconditions.
Acquired immune deficiency syndrome (AIDS) :
A serious condition, such as pneumonia, from which the body can fully recover with proper medical attention
A life insurance policy is a contract of adhesion because buyers must adhere to the terms of the contract already in
existence. They have no opportunity to negotiate terms, rates, values, and so on.
Combines features of both term and whole life coverage with the length of coverage and amount of accumulated cash value as the adjustable factors. Premiums may be increased or decreased to fit the specific needs. Such adjustments are not retroactive and apply only to the future
Adjustable life insurance:
Arrangement under which an insurance company or an independent organization, for a fee, handles the administration of claims, benefits, and other administrative functions for a self-insured group.
Administrative-services-only (ASO) Plan:
An insurance company that has met the legal and financial requirements for operation within a given state.
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.
Adult day care
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.
Rules established by the National Association of Insurance Commissioners (NAIC) to regulate insurance advertising.
Situation wherein one party (an agent) has the power to act for another (the principal) in dealing with third parties.
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.
The section of an insurance application where the agent reports personal observations about the applicant.
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.
Company incorporated or organized under the laws of any foreign nation, providence, or territory.
Surgery performed on an outpatient basis.
Difference between the face amount of the policy and the reserve or policy value at a given time. In other words, the dollar amount over what the policy owner has contributed of cash value toward payment of the policyowner's own claim. Because the cash value increases every year, the net amount at risk naturally decreases until it finally reaches zero when the cash value or reserve become the faceamount
Amount at risk
A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew coverage each year without evidence of insurability. Also called yearly renewable term (YRT).
Annually renewable term (ART)
One to whom an annuity is payable, or a person upon the continuance of whose life further payment depends.
A contract that provides a stipulated sum payable at certain regular intervals during the lifetime of one or more persons,
or payable for a specified period only.
The number of annuity units denotes the share of the funds an annuitant will receive from a variable annuity a c c o u n t after the accumulation period ends and benefits begin. A formula is used to convert accumulation units to annuity u n i t s .
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."
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.
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 is signed 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.
Authorization or certification of an agent to act for or represent an insurance company.
Other sets by this creator
LIFE LICENCE EXAM
chapter 3 OTHER LEGAL CONCEPTS RELATED TO INSURANCE
chapter 3 GENERAL LAW OF CONTRACTS
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