Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses.

Accidental Death Benefits

A policy rider stating that the cause of death will be analyzed to determine if it complies with accidental death provisions.

Accidental Death Insurance

Insurance that pays if death results from an accident.

Time before retirement during which an annuitant makes payments/investments.

A “take-it-or-leave-it” contract offered by an insurer.

Life insurance allowing changes to face amount, premium, or duration.

Higher-risk individuals purchase insurance more frequently.

Insurance company or sales office.

Licensed individual who sells or negotiates insurance.

Authorization for an agent to represent an insurer.

Special powers granted to an agent.

Contract where exchanged values may be unequal.

Insurer incorporated outside the U.S.

Yearly financial report submitted by insurers.

Contract providing income over time or for life.

Authority assumed based on actions of the principal.

Document providing underwriting information.

Transfer of policy ownership rights.

Insured’s age at a given date.

Attending Physician’s Statement (APS)

Doctor’s report on applicant.

Risk handling by staying away from risk.

Policy proposal showing guaranteed and non-guaranteed elements.

Person receiving policy proceeds.

Determines primary coverage for dependent children.

Represents insured in purchasing insurance.

Amount available if a policy is surrendered before maturity.

Written confirmation of policy coverage.

Certificate of Authority

License for an insurer to conduct business.

Certificate of Insurance

Document listing coverage types and amounts.

Forcing someone to buy insurance.

Insurer and insured share losses.

Mixing personal and client funds illegally.

Head of the state insurance department.

Requires both parties to meet obligations.

Information on a person’s credit/reputation.

Group plan where employees pay part of premium.

Business written mainly for the agent’s own circle.

Policy that can be changed without evidence of insurability.

Credit Life Insurance

Pays off a loan if debtor dies.

Amount paid upon insured’s death.

Term insurance with decreasing benefit.

False statements harming reputation.

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Stack #4692776

Question	Answer
Accelerated Benefits	Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses.
Accidental Death Benefits	A policy rider stating that the cause of death will be analyzed to determine if it complies with accidental death provisions.
Accidental Death Insurance	Insurance that pays if death results from an accident.
Accumulation Period	Time before retirement during which an annuitant makes payments/investments.
Adhesion	A “take-it-or-leave-it” contract offered by an insurer.
Adjustable Life	Life insurance allowing changes to face amount, premium, or duration.
Admitted (Authorized) Insurer	Insurer licensed in a state.
Adverse Selection	Higher-risk individuals purchase insurance more frequently.
Agency	Insurance company or sales office.
Agent	Licensed individual who sells or negotiates insurance.
Agent Appointment	Authorization for an agent to represent an insurer.
Agent’s Authority	Special powers granted to an agent.
Aleatory	Contract where exchanged values may be unequal.
Alien Insurer	Insurer incorporated outside the U.S.
Annual Statement	Yearly financial report submitted by insurers.
Annuity	Contract providing income over time or for life.
Apparent Authority	Authority assumed based on actions of the principal.
Applicant	Person applying for insurance.
Application	Document providing underwriting information.
Assignment	Transfer of policy ownership rights.
Attained Age	Insured’s age at a given date.
Attending Physician’s Statement (APS)	Doctor’s report on applicant.
Avoidance	Risk handling by staying away from risk.
Basic Illustration	Policy proposal showing guaranteed and non-guaranteed elements.
Beneficiary	Person receiving policy proceeds.
Birthday Rule	Determines primary coverage for dependent children.
Broker	Represents insured in purchasing insurance.
Cash Value	Amount available if a policy is surrendered before maturity.
Certificate	Written confirmation of policy coverage.
Certificate of Authority	License for an insurer to conduct business.
Certificate of Insurance	Document listing coverage types and amounts.
Claim	Request for policy benefits.
Coercion	Forcing someone to buy insurance.
Coinsurance Clause	Insurer and insured share losses.
Commingling	Mixing personal and client funds illegally.
Commission	Payment to agents/brokers.
Commissioner	Head of the state insurance department.
Concealment	Withholding material facts.
Conditional Contract	Requires both parties to meet obligations.
Consideration	Value exchanged in a contract.
Consumer Report	Information on a person’s credit/reputation.
Contract	Legally enforceable agreement.
Contributory	Group plan where employees pay part of premium.
Controlled Business	Business written mainly for the agent’s own circle.
Convertible	Policy that can be changed without evidence of insurability.
Countersignature	Signing by a licensed agent.
Coverage	Risks included in a policy.
Credit Life Insurance	Pays off a loan if debtor dies.
Death Benefit	Amount paid upon insured’s death.
Decreasing Term	Term insurance with decreasing benefit.
Defamation	False statements harming reputation.
Dependent	Person relying on another for support.
Director	Head of insurance department (in some states).
Disclosure	Identifying producer/representative in transactions.
Domestic Insurer	Insurer operating in its state of incorporation.
Domicile of Insurer	State of incorporation.
Earned Premium	Premium portion already used for coverage.
Effective Date	Policy start date.
ERISA	Federal standards for pension plans.
Endorsement	Policy amendment (rider).
Endow	Policy reaches maturity.
Estoppel	Prevents denial of a previously accepted fact.
Excess Insurance	Coverage above basic limits.
Exclusions	Losses not covered.
Expiration	Policy end date.
Express Authority	Authority stated in contract.
Extension of Benefits	Coverage continues beyond expiration under conditions.
Face	First page of a policy.
Fair Credit Reporting Act	Protects consumer reporting accuracy.
Fiduciary	Handles funds in trust for another.
Fixed Annuity	Guarantees fixed payments.
Flexible Premium	Allows varying payments.
Foreign Insurer	Insurer incorporated in another state.
Fraternal Benefit Societies	Member-based insurance organizations.
Fraud	Intentional deception for gain.
Free Look	Time to cancel policy for a refund.
Grace Period	Time after due date to pay premiums.
Group Life	Coverage for groups.
Hazard	Factor increasing risk.
Moral Hazard	Behavior affecting risk.
Morale Hazard	Carelessness about loss.
Physical Hazard	Tangible risk factor.
Implied Authority	Authority not written but assumed.
Indemnify	Restore to pre-loss condition.
Insolvent Organization	Unable to meet obligations.
Insurability	Acceptability for insurance.
Insurable Interest	Financial stake in insured.
Insurance	Contract transferring risk.
Insured	Party covered by insurance.
Insurer	Company assuming risk.
Insuring Clause	Basic agreement statement.
Intentional Injury	Injury caused deliberately.
Investigative Consumer Reports	Detailed background reports.
Issue Age	Age at policy issuance.
Joint Life	Covers multiple lives.
Juvenile Life	Insurance on minors.
Lapse	Termination for nonpayment.
Law of Large Numbers	Predictability improves with larger sample size.
Level Premium	Fixed premium over time.
Life Expectancy	Average remaining lifespan.
Life Settlement	Selling a policy to a third party.
Limited-Pay Whole Life	Paid up before age 100.
Liquidation	Selling assets to raise funds.
Living Benefits Rider	Allows early access to benefits.
Lloyd’s Associations	Groups underwriting risk.
Loan Value	Borrowable amount from policy.
Loss	Reduction in value due to a peril.
Lump Sum	Single payment settlement.
Medical Information Bureau (MIB)	Database of applicants’ histories.
Misrepresentation	False statement voiding contract.
Mode of Payment	Premium payment schedule.
Mortality Table	Statistics on death probabilities.
Mutual Companies	Owned by policyholders.
Nonadmitted Insurer	Not licensed in a state.
Noncancellable	Policy cannot be canceled if premiums paid.
Nonforfeiture Values	Guarantees even if premiums stop.
Nonmedical	No medical exam required.
Nonparticipating	No dividends.
Nonqualified Plan	Does not meet IRS rules.
Nonrenewal	Insurer ends policy at renewal.
Nonresident Agent	Licensed outside home state.
Option	Choice in payouts or benefits.
Overinsurance	Excess insurance beyond value.
Paid-Up Insurance	Fully paid policy.
Participating Policy	Pays dividends.
Payor Benefit	Waives child’s premiums if payor dies/disabled.
Peril	Cause of loss.
Permanent Life Insurance	Covers to age 100.
Persistency	Likelihood policy stays active.
Personal Contract	Between insurer and individual.
Physical Exam and Autopsy	Insurer may require exam/autopsy.
Policy Loan	Loan against cash value.
Policyholder	Person possessing policy.
Policyowner	Person with policy rights.
Preferred Risk	Lower-risk classification.
Premium	Payment for coverage.
Primary Beneficiary	First to receive benefits.
Primary Policy	First-paying policy.
Principal Amount	Face value.
Private Insurance	Non-government insurance.
Proceeds	Amount paid at death/maturity.
Producer	Agent or broker.
Pure Protection	No cash value coverage.
Qualified Plan	IRS-approved retirement plan.
Rate Service Organization	Develops rates for insurers.
Rebating	Offering incentives not in policy.
Reciprocal Exchange	Group insuring each other.
Reciprocity	Mutual licensing agreements.
Reduction	Minimizing loss likelihood.
Reinsurance	Insurer transfers risk to another.
Renewability Clause	Defines renewal rights.
Renewable Term	Term policy renewable without proof.
Representations	Statements believed true but not guaranteed.
Rescission	Contract termination due to issues like fraud.
Retention	Keeping part of risk.
Rider	Policy add-on.
Risk	Uncertainty of loss.
Pure Risk	Loss or no change.
Speculative Risk	Gain or loss possible.
Standard Risk	Average risk individual.
Substandard Risk	Higher-than-average risk.
Risk Retention Group	Liability insurer owned by members.
Rollover	Moving funds between plans.
Secondary Beneficiary	Receives benefits if primary is unavailable.
Settlement Options	Ways to receive proceeds.
Sharing	Group risk distribution method.
Single Premium Whole Life	One-time payment life policy.
Spendthrift Clause	Protects benefits from creditors.
Standard Provisions	Required policy terms.
Stock Companies	Owned by shareholders.
Straight Life	Level premium, lifetime coverage.
Superintendent	Head of insurance department (alt. title).
Surrender	Terminating policy for cash value.
Term Insurance	Coverage for a set period.
Terminally Ill	Expected to die soon.
Total Disability	Unable to work.
Transfer	Shifting risk to another party.
Twisting	Misleading replacement of policies.
Underwriter	Evaluates risk.
Underwriting	Risk evaluation process.
Unearned Premium	Coverage not yet provided.
Unilateral Contract	Only insurer is legally bound.
Universal Life	Flexible premium life insurance.
Utmost Good Faith	Full honesty required in contracts.
Waiting Period	Delay before benefits begin.
Waiver	Giving up a right.
Waiver of Cost	Waives insurance cost (not savings portion).
Waiver of Premium	Premiums waived if disabled.
Warranty	Statement that must be true or voids policy.
Whole Life Insurance	Lifetime coverage with payout at death.

Created by: leawbacharach

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