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Life Insurance Flashcards

(65 cards)

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1
Q

Insurance

A

Transfer of the risk of financial loss from an individual to an insurance company in exchange for a premium.

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2
Q

Elements of a Legal Contract

A

Agreement (offer and acceptance), Consideration, Competent parties, and Legal purpose.

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3
Q

Aleatory Contract

A

Unequal exchange of value or amounts between insurer and insured.

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4
Q

Unilateral Contract

A

Only the insurer makes a legally enforceable promise.

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5
Q

Representation

A

Statements believed to be true to the best knowledge of the applicant.

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6
Q

Conditional Receipt

A

Coverage begins if initial premium is paid and applicant qualifies under the insurer’s underwriting guidelines.

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7
Q

MIB (Medical Information Bureau)

A

Organization that provides health information to insurers to prevent fraud.

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8
Q

Preferred Risk

A

Lower-than-average risk

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9
Q

Standard Risk

A

Average risk

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10
Q

Substandard Risk

A

Higher-than-average risk

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11
Q

Entire Contract (Life Insurance)

A

Life insurance policy + application + riders/amendments.

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12
Q

Free Look (Life Insurance)

A

10 days to return policy for a full refund

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13
Q

Grace Period (Life)

A

31 days after premium due date to pay premium before lapse.

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14
Q

Incontestability Clause (Life)

A

After 2 years, insurer cannot contest policy based on misstatements (except fraud).

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15
Q

Absolute Assignment

A

Permanent transfer of all ownership rights in the policy.

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16
Q

Collateral Assignment

A

Temporary transfer of some rights to secure a loan.

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17
Q

Waiver of Premium Rider

A

Premiums waived during total disability after a waiting period.

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18
Q

Accelerated Death Benefit Rider

A

Pays a portion of death benefit early if insured is terminally ill or severely chronically ill.

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19
Q

Term Life Insurance

A

Temporary protection with no cash value

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20
Q

Level Term

A

Death benefit stays the same throughout the term.

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21
Q

Decreasing Term

A

Death benefit decreases over time.

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22
Q

Whole Life Insurance

A

Permanent protection with level premiums and guaranteed cash value.

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23
Q

Universal Life

A

Flexible premium and adjustable death benefit policy with cash value account.

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24
Q

Variable Life

A

Fixed premium, investment-based cash value with variable death benefit.

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25
Joint Life Policy
Covers two people, pays upon first death.
26
Survivorship Life Policy
Covers two people, pays upon second death.
27
Annuity
Contract that provides income for life or a specific period.
28
Major Medical Insurance
Health insurance with high maximum limits and broad coverage.
29
HMO (Health Maintenance Organization)
Emphasizes preventive care with network providers and PCP gatekeeper.
30
PPO (Preferred Provider Organization)
Health plan allowing out-of-network use with higher costs.
31
POS (Point of Service Plan)
Hybrid of HMO and PPO
32
Elimination Period (Disability Insurance)
Waiting period before benefits are payable.
33
Residual Disability
Pays partial benefit based on income lost due to disability.
34
Accidental Death and Dismemberment (AD&D)
Pays full or partial sum for accidental death or loss of limbs.
35
Long-Term Care Insurance (LTC)
Covers chronic care services like skilled nursing and custodial care.
36
Medicare Part A
Hospital insurance covering inpatient hospital care and hospice.
37
Medicare Part B
Medical insurance covering outpatient services and doctor visits.
38
Medicare Part C (Medicare Advantage)
Private plan alternative to Original Medicare offering additional benefits.
39
Medicare Part D
Prescription drug coverage through private plans.
40
Medicaid
Joint federal-state program offering health coverage to low-income individuals.
41
Social Security Disability Insurance (SSDI)
Benefits for people who cannot work due to a severe disability.
42
Workers' Compensation
State-mandated program providing benefits for work-related injuries.
43
Coordination of Benefits (COB)
Determines order of payment when insured has multiple health policies.
44
Subrogation
Insurer’s right to recover claim costs from third parties responsible for loss.
45
Grace Period (Health Insurance)
7 days (weekly premium), 10 days (monthly), 31 days (other modes).
46
Time Limit on Certain Defenses (Health)
After 2 years, insurer cannot contest policy except for fraud.
47
Proof of Loss
Insured must submit within 90 days after a loss occurs.
48
Misstatement of Age or Gender (Health)
Benefits adjusted to reflect correct age or gender.
49
Guaranteed Renewable Policy
Insurer must renew policy but may adjust premiums by class.
50
Noncancellable Policy
Insurer must renew and cannot raise premiums.
51
Life Insurance Replacement
Replacing an existing policy with a new one
52
Life Settlement
Sale of an existing life policy to a third party for cash.
53
Buy-Sell Agreement
Business agreement to buy out deceased partner’s share funded by insurance.
54
Key Person Insurance
Protects a business against loss of a crucial employee.
55
Indiana Department of Insurance
Regulates insurance transactions and enforces state insurance laws.
56
Certificate of Authority
License allowing an insurer to legally operate in the state.
57
Insurance Guaranty Association
Protects policyholders if an insurer becomes insolvent.
58
Free Look (Health Policies Indiana)
10 days for health insurance
59
Mammogram Coverage (Indiana)
Required coverage for breast cancer screening.
60
Dependent Coverage (Indiana)
Required coverage for dependent children up to age 26.
61
LTC Free Look (Indiana)
30 days to cancel for a full refund.
62
Medicare Supplement Open Enrollment
6 months after enrolling in Medicare Part B without underwriting.
63
HIV/AIDS Testing Rules
Requires consent and confidentiality.
64
Genetic Testing Rules
Cannot use genetic test results unfairly in underwriting.
65
CHIP (Children’s Health Insurance Program)
Provides healthcare to children in low-income families.

Life Insurance (1 decks)

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