Insurance Terms Flashcards
(119 cards)
1
Q
Misrepresentation of material fact made knowingly with intent to be deceptive
A
Fraud
2
Q
The reduction in value of an asset which is measured before and after
A
Loss
3
Q
The state in which the insurer was formed and is headquartered
A
Domestic
4
Q
Insurer writes business in states other than its home state
A
Foreign
5
Q
Insurer outside of the United States
A
Alien
6
Q
Insurer whose participation and dividends are owned by policyowners
A
Mutual
7
Q
Insurer who is non-participating and no dividends are owned by stockholders
A
Stock
8
Q
Insurer where company has certificate of authority and approved to transact insurance in that state
A
Admitted
9
Q
Insurer where company has no certificate and not approved to transact in state
A
Non-Admitted
10
Q
What is the process of evaluating risk determination if it is acceptable based on established guidelines
A
Underwriting
11
Q
One sided contract where one party is legally bound to performed under contract
A
Unilateral
12
Q
Feature of insurance contract in that there is an element of chance for both parties and that the dollar given by the policyholder (premiums) and the insurer (benefits) may not be equal
A
Aleatory
13
Q
Intentional failure to disclose facts
A
Concealment
14
Q
Intentionally or voluntarily giving up your known right
A
Wavier
15
Q
Authority in writing
A
Express Authority
16
Q
Authority not in writing
A
Implied Authority
17
Q
Authority in action/statement
A
Apparent Authority
18
Q
Transfer of risk
A
Insurance
19
Q
Uncertainty
A
Risk
20
Q
Type of risk with only possibility of loss
A
Pure Risk
21
Q
Type of risk with possibility of loss or gain
A
Speculative Risk
22
Q
Transfer of risk from one insurer to another. Company accepts the risk
A
Reinsurance
23
Q
Reducing risk onto the reinsurer
A
Ceding Insurer
24
Q
The dollar amount beyond which the insured is no longer participates in payment of medical expenses
A
Stop Loss limit
25
What is the frequency of payment
Mode
26
Type of annuity covers 2 or more annuitants and provides monthly incomes only until the first annuitant dies
Joint life annuity
27
Type of receipt makes the insurer liable for the risk from the application date regardless of applicant's insurability
Binding receipt
28
Type of life policy that can be continued year after year without a medical examination, rates are dependent on age of insured at current time
Renewable term
29
What was specifically designed to address STOLI & IOLI
NCOLI Act (National Council of Insurance Legislators
30
What is considered double indemnity
Accidental death
31
What type of coverage pays a monthly cash benefit following the elimination period for total disability due to accident or sickness
Disability income insurance
32
What is a nonforfeiture option
cash dividend option
33
Current assumption whole life policies are sensitive to
Interest rates
34
Short term disability insurance generally only covers injuries due to
Non occupational injuries
35
What type of life insurance is also known as whole life and is in place until age 100
Permanent
36
Type of life insurance is temporary, only offered death benefit, and has no cash value
Term
37
What type of insurance has a distribution of dividends to its policyowners of 75%
Participating
38
What type of life insurance has no distribution of dividend of 100%
Non-Participating
39
What type of life insurance offers a guaranteed minimum or set benefits
Fixed
40
What type of life insurance has no guarantee of performance and has a separate account
Variable
41
Medical plan where is paid in return for service provided
Fee for service
42
Medical plan where individuals pay health pay maintenance organizations specified amount and HMO agrees to provide needed care
Pre-paid
43
What type of whole life insurance has the same premiums for the life of the policy and pays the cash value if the premiums are stopped
Continuous Premium Whole Life
44
What type of whole life insurance allows for a lifetime of premiums to be paid in a shorter period of time (10 or 20 level annual installments)
Limited Payment Whole life
45
What type of whole life insurance policy has only one payment made at the time of purchase and creates immediate cash value
Single premium whole life
46
What type of whole life insurance policy has lower premiums in the first 3-5 years but then increase and become more level? (End up being more expensive)
Modified Premium Whole Life
47
What type of whole life policy insurance has a lower initial premium than modified whole life and increases every 5-10 years as long as the policy remains in force
Graded Premium Whole Life
48
What type of whole life insurance policy is similar to a non-participating policy policy but allows foe adjustable premiums
Indeterminate Premium Whole Life
49
What type of life insurance gives the policyowner power to adjust the face value and death benefit, premium, and length if coverage without have to change the policy
Adjustable Life Insurance
50
What of life insurance insurance was designed for flexible premiums and flexible coverage for the life of the policy where death benefits can be altered. Premiums accumulate as interest within this policy's cash value
Universal Life insurance
51
What type of life insurance policy has a separate account instead of a guaranteed cash value with numerous death benefit options
Variable Life Insurance
52
Agent who sells insurance products of several other companies and works for themselves or other agents
Independent Agent
53
Agent who represents only one one company (insurance company) compensated by commission
Exclusive or Capitve Agent
54
What of annuity provides an individual with an income within a month or up to 12 months
Immediate Annuity
55
What type annuity doesn't provide an immediate income and the owner choose the amount and the frequency of payments with funds to be withdrawn
Deferred Annuity
56
What type of annuity has values guaranteed against loss and never be less than what is paid into the contract
Fixed Annuity
57
What type of annuity has the potential to keep pace with inflation because they are supported by stocks and bonds and have an investment risk
Variable Annuity
58
What type of annuity is also tax-deferred and its interest is linked to S&P 500 index
Equity Indexed Annuity
59
What type of disability rider waives the premium if the interest is 100 percent disabled with a 6 month waiting period
Waiver of Premium
60
What type of disability rider replaces lost income if one cannot work and premiums are waived
Disability Income
61
What type of disability rider is used for for juvenile policies
Payor Benefit Life
62
Type of disability insurance defined as the inability to perform any duties of own occupation
Total Disability
63
Type of disability insurance defined as one can perform some but not all essential duties of their occupation
Partial Disability
64
Type of disability insurance defined as the loss of 2 limbs, total and permanent blindness, total loss of speech, and loss of hearing
Presumptive Disability
65
Type of disability insurance defined as one that is paid when insured cannot perform the same duties as before as based on income lost
Residual Disability
66
Type of disability insurance as one for employees who return to work but becomes disabled again within 90 days
Recurrent Disability
67
Type of disability insurance defined as requiring 40 quarters completed with a 5 month waiting period ceases when retirements starts
Social Security Disability
68
Type of long term care that refers to skilled medical and therapy services performed by individuals home home by visiting home health aids
Home Health Care
69
Type of long term care that provides company supervision along with social and recreational support for people whose grown children care for them at home but work during the day
Adult Day Care
70
Type of long term care that is similar to hospice care where professionals care for someone who temporarily in order to give few days rest to family members who provide care
Respite Care
71
Type of long term care for people who need assistance from time to time but can live independently compared to those who receive custodial care
Assisted Living
72
Level of long term care that requires 24/7 nursing by a medical professional
Skilled Care
73
Level of long term care that requires occasional nursing or rehab by medical professional
Intermediate Care
74
Level of long term care that requires help with activities of daily living not performed by a medical professional
Custodial Care
75
Type of limited health policy that pays a flat dollar amount as a daily benefit for each day the insured is hospitalized as an inpatient where payment is made directly to the insured not the hospital
Hospital Indemnity
76
Type of limited health policy that only covers accidents as peril and excludes any type of sickness or disease
Accident Only
77
Type of limited health policy that was developed to cover one or one type of catastrophic illness in the policy such as cancer or heart disease
Specified or Dread Disease
78
Type of limited health policy that covers routine eye and vision correction
Vision Care
79
Type of limited health policy that covers hearing exams and some or all hearing aids
Hearing Insurance
80
Type of limited health policy where group policy has retailer as master policyowner and the debtors are group members. If debtor becomes disabled then policy benefits are paid to the creditor
Creditor Disability Insurance
81
Type of of limited health where group members engage in similar activity and members are automatically covered when part of the (no application or certificate)
Blanket Coverage
82
Type of limited health policy which which is sold as a means of temporary health coverage which are not renewable and must be qualified for
Short-Term Medical Expenses
83
What is the use of annuity uses settlement to make big deposit into annuity
Lump Sum
84
What use of annuity allows IRS to accept annuity as a retirement option
Retirement Plan
85
What use of annuity allows one to have income during retirement as a supplemental income
Retirement Income
86
What use of annuity allows for money to be put away for educational purposes
Education
87
Types of of specialized life policy that has more than one person but the benefit is paid after the first death
Joint Life
88
Type of of specialized policy that has more than one person but the death benefit extends to the last death
Survivorship
89
Type of business disability insurance where important member of business loss could cause financial incapability to cover the expenses for business
Key Person Disability
90
Type of business disability insurance to cover overhead expenses while owner is disabled but doesn't cover the owner/partner salary
Business Overhead Expense
91
Type of disability insurance used to fund agreement to buy out interest of business owner/partners
Disability Buy-Sell
92
Type of life insurance policy rider where policyholder becomes disabled premiums are paid so coverage continues
Waiver of Premium
93
Type of life insurance policy rider that provides insured with monthly benefit
Disability Income
94
Pays a large portion of healthcare bills for people for 65 and older, have end-stage renal failure, or have been receiving social security disability for at least 24 months. Individual must be fully insured with 40 credits and funded by the branch of the Department of Human Health Services
Medicare
95
Medical plan that includes HMO allows subscribers to use providers outside of HMO, no gatekeeper for out of network services, subscribers pay more of the cost, called an open-ended HMO
Position of Service (POS)
96
Medical plan that includes managed care, fee for service, pre-negotiated rates, insured pay less when using in network providers
Preferred Provider Organization (PPO)
97
Medical plan that includes managed care, prepaid services, co-pays, gatekeeper, limited choice of providers, limited service area, emergency care, preventive care, hospital care, office based care, and outpatient services
Health Maintenance Organization (HMO)
98
Includes a size of group, composition of group, contributory/non-contributory, persistency, administrative capability
Enrollment Card in Group Health
99
What are the 2 annuity phases
Accumulation: Pay in
Annuitization: Pay out
100
Illness or disease or that existed before individual's health insurance went into effect
Pre-existing Condition
101
What are the 2 types of perils covered by health insurance
Accident and Sickness
102
Assignment that transfers all rights of ownership to another person or entity
Absolute/Permanent Assignment
103
Assignment does not change ownership of a policy and is common within loans
Collateral Assignments
104
Health insurance coverage that offers benefits for only particular type of loss and are number of special insurance policies
Limited Coverage
105
Health insurance coverage that offers broad services
Comprehensive Coverage
106
Cause of loss that insurer agrees to cover caused by a specific one
Peril
107
Include evidence of coverage, who is covered by plan and summary of benefits
Certificated of Coverage in Group Health
108
Risk assumed by insurer amount is responsible for paying out
Exposure
109
Designed to provide steady cashflow during retirement years and protect against someone living too long
Annuity
110
Death within 24 months
Terminally Ill
111
Inability to perform 2 activities of daily living (ADLs)
Chronically Ill
112
What are 5 types of beneficiaries
Individuals, Classes, Estates, Trusts, Minors
113
Hazard that involves one's state of mind or careless attitude
Morale Hazard
114
Hazard that arises from individual's character
Moral Hazard
115
Hazard that is physical identifiable using equipment that produces tangible evidence of existence
Physical Hazard
116
Type of life insurance policy rider which changes insured to a different person
Exchange Privilege
117
Type of life insurance policy rider with convertible term insurance spouse or immediate family member of primary insured
Other Insured Term
118
Type of life insurance policy rider where if person responsible for the premiums becomes disabled/deceased premiums are waived until child is 18-21 years of age
Payor Benefit Life
119
Medical supplement insurance that is sold by private companies to help cover some health care cost that original medicare does not cover and is designed to to fill the gaps in Parts A and B, but cannot be purchased by someone in Part C
Medigap
