Chapter 6 Terms Flashcards
(9 cards)
What is accidental bodily injury?
An unforeseen and unintended injury that resulted from an accident rather than a sickness.
What is a cafeteria plan?
A type of employee benefit plan that allows insureds to choose between different types of benefits.
What does cancellation mean in insurance?
Termination of an in-force insurance policy, by either the insured or the insurer, prior to the expiration date shown in the policy.
What is comprehensive coverage?
Health insurance that provides coverage for most types of medical expenses.
What is a deductible?
A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits.
What is nonrenewal in insurance?
Termination of an insurance policy at its expiration date by not offering a continuation of the existing policy or a replacement policy.
What are riders in insurance?
Added to the basic insurance policy to add, modify or delete policy provisions.
What is considered sickness in insurance terms?
An illness, which first manifests itself while the policy is in force.
What is underwriting?
The risk selection and classification process.
