Basics Flashcards
(32 cards)
Funds held by the company to help fulfill future claims, minimum _____s are usually set by the state dept of insurance
Reserve
A company or insurance agent that provides a “one stop shop” for businesses or individuals, many different policies in one (life, auto, homeowner, etc.)
Multi-line Insurance
An insurance company owned by stockholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premium nonparticipating policies
Stock Company
Insurance where the insured is not entitled to share in the divisible surplus of the company
Nonparticipating Plan
A company that has no capital stock, it is owned by policy owners and usually provides participating insurance
Mutual Company
A plan where the policy owner receives a part of the company’s surplus and is allowed to elect the board of directors
Participating Plan
A divided part of a company’s surplus
Dividends
A company that provides financial protection to insurance companies
Reinsurer
Nonprofit, benevolent organizations that provide insurance. Agents only sell within their societies, don’t receive commission, and stay under a threshold to avoid more stringent licensing requirements.
Fraternal Benefit Societies
A federal law requiring that a person is to be informed if they are being investigated by an inspection company
Fair Credit Reporting Act
Consumer guidebooks that outline the insurance plans available to them, they are often used when buying life/long term care insurance and annuities
Buyer’s Guides
Insurance contracts that provide a fixed income stream for a person’s lifetime or a specified period of time. A(n) ______ can be purchased with a lump sum or a series of payments and begin paying out almost immediately or at some point in the future. They are often used as a way to fund retirement.
Annuities
A summary of terms in an insurance policy including conditions, coverage limitations, and premiums, they are often used when buying life/long term care insurance and annuities
Policy Summary
The mission of the ______ is to assist the state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental insurance regulatory goals in a responsive, efficient and cost effective manner, consistent with the wishes of its members.
National Association of Insurance Commissioners
State-sanctioned organizations that protect policyholders and claimants in the event of an insurance company’s impairment or insolvency. They are legal entities, whose members make guarantees and provide a mechanism to resolve claims.
State Guarantee Associations
A policy against the death of an insured person to be paid out to beneficiaries
Life Insurance
Protection set for a number of set years, expiring if the insured survives past them
Term Life Insurance
Permanent level insurance protection for the entire life of the insured, characterized by level premiums, level benefits, and cash values
Whole Life Insurance
Life insurance for a group of people, usually between an employer and employees. The insured typically does not own the policy, the “group” or employer usually does
Group Life Insurance
This is the premium or the future premiums that you have to pay to your insurance company. For insurers, consideration also refers to the money paid out to you should you file an insurance claim. This means that each party to the contract must provide some value to the relationship. Why a company should consider you
Premium/application/how much and how often I will pay
Consideration
The part of the policy in which the company outlines how much they will pay under which circumstances
Insuring Agreement/Insuring Clause/Insurance Provision
A type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalization costs, cost of medicines or doctor consultation fees.
Health Insurance
A form of insurance that insures the beneficiary’s earned income against the risk that disability will render them unable to work
Disability (Income) Insurance
Pays benefits for nonsurgical doctor’s fees
Medical Expense Insurance
