Flashcards in Chapter 8 Deck (108)
activites that people do independently every day including eating bathing, dressing, trasferring location, continence and toileting
terminology: Benefit period
the max length og time an insured is eligible to collect benefits while on a disability claim
terminology: cognitive impairement
problems with attention, affect, memory or other loss of intellectual capacity
Terminology: Collateral assignment
the legal transfer of one persons interest in a policy to a creditor as a security for a debt. the creditor is first entitled to be reimbured out of policy proceeds for the amount owned. The beneficiary is then entitled to the rest.
Terminology: conditionally renewable
policy type in which the company can change the premium, policy providison or cancel the policy as long as it does so for all insured within a specific class who own the contract.
Terminology: contractual exclusion riders
riders that are included in the wording of every policy of a particular type and outline situations where benefits would not be payable. No benefit would be payable if the claim resulted from the insured's participation in an illegal act
Terminology: death benfit
LI proceeds payable upon proff of the insureds death.
What is an exlusion rider?
a rider attachemnt to an insurance policy that excludes losses arissinf from certain conditions or avocations.
terminology: Guaranteed renewable
policy type in which the insurance company cannot cancel the policy, change any provision or add any restrictions as long as premiums are paid. They cannot be changed for an individual policy holder but can be changed for all poilicies of that type or in that specific class.
Terminology: Irrevocable beneficiary
beneficiart whose interest in an insurance policy cannot be revoked without the individuals written consent.
terminology: Legally competent
a person of legal age and sound mind who is recognized by law as being able to contract with others.
2. morbitidy risk
4. mortality risk
1. prevelance of disease or disability within a population
2. risk of a particular individual contracting a disease, or other disabling condition at any given time when . compared to others of the same age/sex
3. number of deaths that occur at any given time, in a given group or from a given cause
4. the risk of a particular individual dying, at any given time, compared to other individuals of the same sex and age.
for the purpose of disability insurance can be defined as the desire of the individual to work. some factors influencing an individuals motivation to work can include their work ethic, type of occupation, persona situation, work environment and income level.
terminology: non- cancelable
a policy type in which as long as premiums are paid on time, the company cannot cancel the policy, increase premiums add restrictive riders and change the policy provision.
What is office overhead expense insurance?
type of disability business insurance where the monthly benefit payable is contigent on the covered business expences incyrred by the b usiness during each month of disability.
Terminology: unearned income
income that would continue in the event of an insured's inability to work such as income from investments, alimony, rental income, royalties, pension income, trust income and capital gains
purchasing insurance policies for cash from terminally ill policy holders