Life Vocab Flashcards
(20 cards)
Morbidity Table
Table showing the average number of sicknesses and accidents by various ages.
Insurable interest
What’s insured to live.
Financial interest in having the insured live.
Contract
Agreement outlining the rules and responsibilities of the insure and insured.
Valid contracts 4 requirements
- Mutual assets
- Consideration
- Competent parties
- Legal purposes
Conditional
“On one condition”
Certain conditions needed to be met to make the contract.
Adhesion
Any ambiguous language in a contract, the court would side with the policy owner.
Dividend
Return of a portion of the premiums paid on your policy.
-not guaranteed-
Nonparticipating life
Policy not designed to pay dividends to the policy owner.
Participating life
Policy which pays owner a dividend.
Foreign insurance
An insurance company that is incorporated outside of the state where it is conducting business.
Domestic insurer
Insurance company organized in the state where it is conducting business.
Agent
Appointed by a insurance company to sell its products and represent its insured.
Fiduciary
Person in position of financial trust.
Errors & Omissions
Liability insurance while provides coverage for any act, errors, or omissions.
Decreasing Term Insurance
Life policy where the face amount decreases by a specific amount over time.
Term life
Life insurance designed for a number of years.
Renewable term insurance
Term policy where the insured has the option of continuation coverage for a period of time but with an increase in premiums based on age.
Life Paid-up
Type of policy where the the premiums are paid in full within a started period of time.
Endow
“End”
The cash value/face amount of the life policy.
Ordinary insurance
Policy written on an individual basis.
Either term, permanently or endowment.
