Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Health & Life Insurance > Chapters 5-8 > Flashcards

Chapters 5-8 Flashcards

1
Q

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)

A

Adjustable Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

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.

A

Annually Renewable Term (ART)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The insurance company’s account for investing policyholder premiums in safe and conservative investments.

A

General Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Life products that allow the policyowner to assume the premium the premium investment risk with the possibility of greater cash values and a chance to keep peace with inflation

A

Variable Contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A type of permanent life insurance that guarantees coverage for life and minimum death benefit, but no guarantee to the cash value. The death benefit and cash value will fluctuate according to the performance of the separate accounts

A

Variable Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A flexible premium life policy that combines aspects of both variable life and universal life insurance

A

Variable Universal Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A type of term insurance the provides coverage for one year, then automatically renews at the end of the policy year without evidence of insuribility

A

Annually Renewable Term (ART)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A term life policy that may be exchanged to a permanent life policy without evidence of insurability

A

Convertible Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A type of permanent life insurance that provides for a death benefit, if the insured died during the term or pays the proceeds at the end of the term as a living benefit

A

Endowment Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A type of term life insurance in which the death benefit increases over the policy’s term.

A

Increasing Term Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A type of whole life insurance whose premiums vary based upon the insurer’s investment experience, mortality risk, and expense assumptions

A

Interest Sensitive Whole Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

An insurance contract covering two or more lives that pays policy proceeds upon the death of the first insured. Then the policy is terminated.

A

Joint Life Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A type of term life insurance in which the death benefit remains constant over the policy’s term.

A

Level Term Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A policy that will pay a stated amount to a beneficiary upon death of the insured.

A

Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A form of whole life insurance in which premiums are paid for a specified number or years or to a specified age of the insured

A

Limited pay life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A federal tax law that limits high amounts of premium into a cash value insurance policy. If the policy is paid up within the first 7 years, distributions of cash value will most likely be subject to tac and penalties.

A

Modified Endowment Contract (MEC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A term life policy that may be renewed for the same specified number of years without evidence of insuribility

A

Renewable Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

To give up a permanent life insurance policy

A

Surrender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

An insurance contract that provides protection only for a stated number of years. If the insured dies within that period of time, a beneficiary with receive the proceeds. If the Insured is alive at the end of that period of time, the policy has no value.

A

Term Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A Period of time after the due date of a premium where the policy remains in force.

A

Grace Period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A provision that gives the policyholder the right to review the policy for a stated number of days, usually 10, and receive a full refund if the policy is returned to the insurance company,

A

Free Look

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A provision in a life insurance policy that states if the insured commits suicide within the first two years (Illinois insurance law) of the effective date, the policy is void. The company will usually return premiums to the
beneficiary.

A

Suicide Clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

A stipulation that authorizes the insurance company to pay any defaulted premium from the cash value of a life policy. The insurance company will treat this as a policy loan.

A

Automatic Premium Loan Provision

22
Q

A limitation or exclusion of coverage for private aircraft. Fare-paying passengers and commercial crewmembers do not have this exclusion in
their life policies.

A

Aviation Clause

23
Q

A period of time, usually after the first two years the policy has been in force, in which the insurance company cannot deny a claim or void the
policy based on misstatements or omissions on the application.

A

Incontestable Clause

24
Q

The part of the insurance contract that sets forth the amount, renewal, and frequency of premium payments

A

Consideration Clause

25
Q

A policy owned by someone other than the insured

A

Third Party Ownership

26
Q

A model law that states if the insured and sole beneficiary die at the same time (that is, it cannot be determined which person lived longer), it is presumed that the insured outlived the beneficiary. Also known as common disaster provision.

A

Uniform Death Simultaneous Death Act

27
Q

A policy condition designed to protect the contingent beneficiary or provide an alternative beneficiary in the event that both the insured and primary beneficiary die as a result of a common accident.

A

Common Disaster Provision

28
Q

A condition that states if the insured misstated (intentionally or unintentionally) age or gender, the insurance company will adjust the benefit payable to what the premiums paid should have been purchased
or based on.

A

Misstatement of Age or Gender Provision

29
Q

A limit to the period of time that the company can deny a claim after the policy has been in force for a set number of years, usually two years.

A

Time Limit on Certain Defenses

30
Q

A life insurance rider that allows for the early payment of some portion of the policy’s face amount, should the insured suffer from a terminal
illness or injury

A

Accelerated Benefits Rider/Option

31
Q

A written sales agreement between a viatical settlement provider and a terminally ill policyowner/insured. The policyowner sells the policy for an amount less than the death benefit, but more than the cash value, to the viatical settlement provider who becomes the owner and irrevocable beneficiary.

A

Viatical Settlement

32
Q

Privileges to protect the cash value of a lapsed permanent life policy

A

Nonforfeiture Options

33
Q

Benefits accorded by law, so that the policyowner will not forfeit cash value.

A

Nonforfeiture Values

34
Q

A policy that does not allow the policyholder to share in the company’s divisible surplus

A

Nonparticipating

35
Q

A policy that allows the policyholder to share in the company’s divisible surplus

A

Participating

36
Q

Various methods by which the beneficiary of a life insurance policy can receive the policy proceeds usually determined by the policyowner.

A

Settlement Options

37
Q

The insurance company must allow the policyowner to borrow money using the policy’s cash value as collateral to secure the loan. This is one
of the nonforfeiture options.

A

Policy Loan

38
Q

A dividend option that purchases additional life insurance with the policy
dividends at the insured’s attained age.

A

Paid-Up Additions

39
Q

Calculated by an actuary using two factors – (1) risk minus (2)
investment income. Loading is not a factor.

A

Net Premium

40
Q

A nonforfeiture option that allows the policyowner to receive the cash value when surrendering or giving up their permanent life insurance.

A

Cash Surrender Option

41
Q

The amount of equity (cash value) available, if the policyowner surrenders their permanent life insurance.

A

Cash Surrender Value

42
Q

A dividend option that leaves the policy dividends with the insurance company to invest and earn interest.

A

Accumulation at Interest

43
Q

A nonforfeiture option that allows the policyowner to use the cash values of a lapsed permanent policy, as a net premium, to purchase another whole life policy with a reduced face amount, but permanent protection.

A

Reduced Paid-Up Insurance

44
Q

A nonforfeiture option that allows the policyowner to use the cash values of a lapsed permanent policy, as a net premium, to purchase term
insurance with the same amount of protection as the lapsed policy offered.

A

Extended Term Insurance

45
Q

Payment of the entire amount of proceeds from an insurance policy as opposed to a settlement option which pays the proceeds over time.

A

Lump Sum

46
Q

A life insurance settlement option that pays the interest on policy proceeds (as opposed to a lump sum settlement) being invested by the insurance company. The death benefit will be paid out at some later
specified date.

A

Interest-Only Settlement

47
Q

A life insurance settlement option that pays the policy proceeds in periodic installments for a stated number of payments (as opposed to a lump sum settlement).

A

Fixed Period/Time Settlement

48
Q

A life insurance settlement option that pays the policy proceeds in periodic installments of a fixed dollar amount (as opposed to a lump sum settlement)

A

Fixed Amount Settlement

49
Q

A life insurance settlement option that uses the policy proceeds to purchase an immediate annuity for the beneficiary

A

Life Income Settlement

50
Q

A rider or provision whereby the insurer gives up the right to receive premium, yet keeps the policy in force after the insured has been totally disabled for a specified period of time.

A

Waiver of Premium

51
Q

An attachment to a juvenile policy that waives future premiums, if the policyowner dies or becomes disabled until the juvenile reaches the age of majority.

A

Payor Rider

52
Q

An option or rider that allows the policyowner to purchase additional coverage without evidence of insurability

A

Guaranteed Insurability

53
Q

A term rider that covers a family member other than the insured and is attached to the insured’s “base” policy

A

Other Insureds

Health & Life Insurance (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions