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MI Pre-Insurance Lic
A-B = Vocabulary Words
| Term | Definition |
|---|---|
| Absolute Assignment | A type of 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 benefitsd. AKA - Permanent Assignment |
| Accelerated Benefits Rider | A life insurance rider that allows for early payment of some portion of the policy's face amount should the insured suffer from a terminal illness or injury. |
| Acceptance | One party's agreement to the offer of another party. With an insurance contract, acceptance usually takes place when the policy is issued. |
| Accident | An unforeseen, unexpected and unintended event that results in bodily injury. |
| Accident & Health Insurance | An insurance policy under which benefits are payable in case of illness or accident. AKA - Health Insurance |
| Accidental Death and Dismemberment (AD&D) | A policy that provides payment if the insured dies from an accident, accidentally severs a limb or accidentally and permanently loses eyesight. |
| Accidental Death Benefit Rider | A life insurance policy rider that provides for an additional death benefit if the insured dies by reason of accident. Sometimes called a "double indemnity" rider. |
| Accumulation of Interest | A dividend option that leaves the policy dividends with the insurance company to invest and earn interest. |
| Accumulation Period | With an annuity, it is the period of time, usually before retirement and withdrawals, that the annuitant is paying premium that accumulates interest tax-deferred. |
| Activities of Daily Living (ADLs) | A long term care policy will use these activities (bathing, dressing, eating, mobility, etc) as a assess dependency. guide to |
| Actuary | Mathematician hired by an insurance company to apply probabilities and statistical analysis to risks and premiums. |
| Acute Illness | A serious and life threatening condition which requires immediate and proper medical attention. |
| Adjustable Life Insurance | a policy that allows changes or adjustments to the policy face amount, the amount of premium, the period of protection and the type of coverage (term or whole life). |
| Adjuster | An insurance company representative who seeks to determine the extent of the company's liability when a claim is submitted. |
| Adverse Selection | The tendency of insureds who present a higher probability of loss to purchase or renew insurance more often than those who present a lower probability of loss. Insurer views as "anti-selection", i.e. not in the best interests of the company. |
| Agent | A person licensed by the state insurance authority to sell insurance products. Represents the insurance company in all transactions |
| Agreement | One party's offer is accepted by another party. Both parties agree to the terms of the contract. |
| Aleatory | A contract condition where one party may obtain greater value under the agreement than the other party. An insurance contract has this "chance" or possibly unequal element. |
| Alien Insurer | An insurance company organized and incorporated outside the US; organized under laws of a foreign nation. |
| Ambulatory Surgery | Performed on an outpatient basis. |
| Annually Renewable Term (ART) | A type of term insurance that provides coverage for one year, then automatically renews at the end of the policy year for another year without evidence of insurability. |
| Annuitant | A person whose life is measured for the annuity contract. Typically they will receive monthly income payments for life |
| Annuity | A contract offered by the life insurance industry that provides stipulated payments at regular intervals (monthly, ect) for lifetime of annuitant or spec. length of time. |
| Any Occupation | The insured is unable to perform any job they would reasonably be suited to do (education, training or work experience) - to receive disability income benefits. |
| Applicant | the person applying for the insurance policy who could also be the insured and/or policy owner. |
| Application | A form supplied by the insurance co., completed by the agent, answers given by applicant. Signed by agent & Applicant. Submitted to insurance co. |
| Assignment | The legal transfer of a policy owner's rights in an insurance policy to another party. |
| Attained Age | The current or present age of the insured. |
| Automatic Premium Loan Provision | A stipulation that authorizes the insurance company to pay any defaulted premium from the cash value of a life policy. Treated as a policy loan. |
| Aviation Clause | A limitation or exclusion of coverage for private aircraft. Fare-paying passengers and commercial crewmembers do not have this exclusion in their life policies. |
| Basic Hospital Expense | A health insurance policy that only covers room & board if there's an overnight stay & misc. expenses (labs, xrays), that occur because of the stay. 1st dollar benefits by the insurer, low coverage limits. |
| Basic Medical Expense | A health insurance policy that only covers outpatient physician services & procedures. 1st dollar benefits by the insurer, low coverage limits. |
| Beneficiary | The recipient of a life or accident policy payable upon the death of the insured. |
| Blackout Period | A period of time when SS survivor benefits are not available to the surviving spouse and/or children. |
| Blue Cross | Service organization that geographically provides protection against the cost of hospitalization. Benefits paid directly to participating hospitals |
| Basic Surgical Expense | A health insurance policy that only covers surgeries, surgeons & anesthesiologists. Provides 1st dollar benefits by the insurer, low coverage limits. |
| Blanket Policy | A policy that covers a number of insureds, exposed to the same hazards or risks, such as members of an athletic team or campers. |
| Blue Shield | Service organization that geographically provides protection against the cost of surgeries and other medical care. Pays benefits directly to the participating medical providers. |
| Broker | Person licensed by the state insurance authority to sell insurance products. Represents the client & places business among various insurance companies. |
| Business Continuation Plan | An arrangement among business partners or owners that provides for the continuation of the business in the event of death or disability of one of the owners. |
| Business Health Insurance | A policy purchased and owned by a business to indemnify the business in case of disability or sickness of a key employee. |
| Business Overhead Expense Insurance | Specialized use of disability income insurance that pays routine, necessary overhead expenses of business if the business owner becomes disabled. |
| Buy-Sell Agreement | A business continuation plan - gives a remaining business owner -predetermined legal right to purchase a deceased owner's interest at a predetermined price. Proceeds to purchase the deceased owner's interest come from a life insurance policy. |
Created by:
Rosemj42
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