Life, Accident, Health & Disability Insurance ( Latest 2023/2024 ) Complete Answers 100% Correct
- Insurance
Answer: Transfers risk of loss from the insured to the company
- Insurance Interest
Answer: Financial interest in having the life of the insured continued
- Foreign Insurance Company
Answer: An insurance company that is incorporated out- side the state where it is conducting business
- Renewable Term Insurance
Answer: Term insurance where the insured has the option of continuing the
coverage for a period of time but with an increase in premiums based on age
- Last Survivor Policy (Second-to-Die)
Answer: Mostly used by husband and wife for estate planning. Written for million dollars or more. It will pay on the death of the second to die.
- Irrevocable Beneficiary
Answer: This person cannot be removed as beneficiary unless this person gives
his/her written consent
- Rider
Answer: Endorsement to an insurance contract that modifies clauses and provision of the policy
- Substandard Risk
Answer: A greater than average risk for the insurer
- Conversion (Demutualization)
Answer: When a mutual insurance company changes to a stock insurance company
- Tax-Deferred
Answer: Allows the cash values to accumulate without tax penalties and postpones taxation to a later date. A term that is used when income is earned on an investment but taxes are postponed until benefit payments (qualified plan)
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- Stop Loss Provision
Answer: Limits the insured's out of pocket expenses
- Group Insurance
Answer: Life or health insurance provided for large numbers of people who have
something in common, such as the same employer
- Long Term Care Insurance
Answer: Health insurance that provides funds for people who need home health
care, extended health care or nursing home care
- Broker
Answer: A licensed fire and casualty licensee who represents the client for a fee
- Usual, customary & reasonable
Answer: In health insurance, pays a dollar amount based on the geographical
location
- Nonparticipating Life Insurance
Answer: A life insurance policy that does not pay dividends to policyowners
- Modified Endowment Contract (MEC)
Answer: This concept applies to permanent life insurance. Prevents a life insurance policy from being used as or becoming an investment vehicle.
- Return of Premium Rider (Disability Income)
Answer: Allows for a portion of the premium to be returned (refunded) to the
insured if the policy owner (he/she) is permanently disabled. Refunds
- Implied Authority
Answer: Authorization to do something even though it is not in writing
- Pure Risk
Answer: No chance for a gain
- Morbidity Table
Answer: The table that shows the average number of sickness or accidents at various ages
- Participating Life Insurance
Answer: A life insurance policy that allows policy holders to "participate" or share 2 / 3
in the profits of the insurance company (mutual insurer). Policy which pays a dividend to its owner.
- Term Insurance
Answer: Life insurance protection for a designated number of years
- Joint Life Insurance
Answer: A life policy covering two or more lives. It may be written as a first to die or second to die policy
- Per Stirpes
Answer: A beneficiary class designation that states, if one of the primary
beneficiaries dies before the insured, their portion of hte death benefit is paid to the deceased beneficiary's children when the insured dies. "through the roots" maintains the order of beneficiaries
- Fixed Amount Settlement Option
Answer: The death benefit is paid to the beneficiary in a series of fixed amount installments until the proceeds plus interest are exhausted
- Viatical
Answer: Insurance paid to terminally ill persons. Typically in lump sum. Absolute assignment is required.
- Multiple Employer Trust (MET)
Answer: Legal entities in which two or more financially unrelated companies join together to provide group insurance
- Life Annuity Certain
Answer: An annuity that pays income to the annuitant for life or to a named
beneficiary for a period certain if the annuitant has died.Annuity guaranteeing a given number of income payments whether or not the annuitant is alive to receive them. It pays the annuitant for a guaranteed period of time or the life of the annuitant, whichever is greater.
- Preexisting Condition
Answer: A health condition or sickness that occurred prior to the issuing of a health policy
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