| Question | Answer |
| The starting point and basic source of information used by insurance company. Part 1 - general information and Part 2 - Medical information | Application |
| Person covered by the insurance policy; may or may not be the policyowner | Insured |
| Policy termination due to nonpayment of premium | Lapse |
| The paid amount upon death of the insured in a life insurance policy | Death benefit |
| commonly purchased to insure the payment of a mortgage or other debts | Decreasing Term |
| A person applying for insurance | Applicant |
| a membership corporation owned by member insurance companies. Nonprofit trade organization which receives adverse medical information from insurance companies and maintains confidential medical impairment information on individuals | Medical Information Bureau (MIB) |
| The company who issues an insurance policy | Insurance Company, also known as the Insurer (Principal) |
| A statement that if discovered, would alter the underwriting decision of the insurance company | Material Misrepresentation |
| A statement saying that coverage will be effective either on the date of application or the date of medical examination, whichever occurs last, unless coverage is declined or rated, or issued with riders excluding specific coverage | Conditional Receipt |
| The person entitled to exercise the rights and privileges in the policy | Policyowner |
| - Proper solicitation of applicants
- Helping prevent adverse selection
- Completing the application
- Obtaining the required signature
- Collecting initial Premium and issuing the receipt
- Delivering the policy | Field Underwriting responsibilities |
| Before submitting application you must complete and sign... | Agent's Report |
| Untrue statements on application | Misrepresentation |
| An AGENT on the company's front line, the agent is usually soliciting the potential insured. | Field Underwriting |
| Money paid to the insurance company for the insurance policy | Premium |
| organizations must consult the registry every 31 days. Any phone numbers on registry must be dropped from the organization's call list | Do Not Call List |
| Before a policy is issued, all of the questions on the application must be answered. If the insurer receives and incomplete application, the insurer must return it the the agent for completion | Consequences of Incomplete Applications |
| This document provides basic, GENERIC information about life insurance policies that contains, and is limited to, language provided by the Department of Insurance. This is called... | Buyer's Guide |
| A written statement describing the FEATURES & ELEMENTS of the policy being issued. | Policy Summary |
| The practice of terminating and existing policy of letting it lapse, and obtaining a new one | NJ Replacement |
| A contract between a policyowner (and/or the insured) and a insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events | Insurance Policy |
| Agent/Producer, Applicant, and Policyowner (if not proposed insurer) | Required Signatures |
| allows policyowner the right to renew the same amount of coverage, without evidence of insurability. Premium for new term is based on insured's current age | Renewable Life Insurance |
| The insurer must disclose use of testing to applicant and obtain written consent from the applicant on the approved form | Medical Examinations and Lab Tests Including HIV |
| An absolutely true statement upon which the validity of the insurance policy depends. | Warranty |
| To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. This must be exist on a life insurance policy at the application or issued date This is called... | Insurable Interest |
| Appointment date
Medical Exam
Death
Policy Issued | Example of a Conditional Receipt |
| Coverage on a human life | Life Insurance |
| High risk individuals requesting insurance | Adverse Selection |
| The Law protecting consumers against the circulation of inaccurate or obsolete information | Fair Credit Reporting Act |
| a statement from a medical practitioner who treated the applicant for a prior medical problem | Attending Physician's Statement (APS) |
| A person who receives the benefits of an insurance policy | Beneficiary |
| Signature of good health | Receipt |
| a person's net worth | Estate |
| The risk selection and classification process. It's when an insurance company determines whether or not a particular applicant is insurable, and if so, what premium to charge. | Underwriting |
| An insurance producer, not appointed by an insurance company and who represents their client | Broker |
| A legal representative of an insurance company | Agent/Producer |
| Pure Death Protection | Term Life Insurance |
| Statements believed to be true to the best of one's knowledge but they are not guaranteed to be true | Representation |
