Chapter 3 Terms Flashcards
(8 cards)
What are Activities of Daily Living (ADLs)?
ADLs are essential activities that include bathing, dressing, eating, transferring, toileting, and continence.
What is an Assignment in insurance?
An Assignment is the transfer of rights of policy ownership.
What does Consideration refer to in a contract?
Consideration refers to something of value that each party gives to the other, serving as the binding force in any contract.
What is Indemnity?
Indemnity is a principle of reimbursement on which insurance is based; in the event of loss, an insurer reimburses the insureds or beneficiaries for the loss.
What is a Lump Sum payment?
A Lump Sum payment is the payment of the entire benefit in one sum.
Who is considered a Minor?
A Minor is a person under legal age.
What does NAIC stand for?
NAIC stands for the National Association of Insurance Commissioners, an organization composed of insurance Commissioners from all states and jurisdictions formed to resolve insurance regulatory issues.
What is the Principal in an insurance policy?
The Principal is the face value of the policy; the original amount invested before the earnings.
