Terms to Know

Question 1

Agent/Producer

Answer 1

A legal representative of an insurance company; Producer includes agents and brokers; agents of the insurer

Question 2

applicant or proposed insured

Answer 2

person applying for insurance

Question 3

consent

Answer 3

permission to do something

Question 4

insurable interest

Answer 4

the policy owner facing the possibility of losing something of value in the event of loss

Question 5

insurance policy

Answer 5

contract between policy owner (and/or insured) and an insurance company agrees to pay the insured or beneficiary for loss caused by specific events

Question 6

insured

Answer 6

person covered by the insurance policy (may/maynot be the policy owner)

Question 7

insurer (principle)

Answer 7

company who issues an insurance policy

Question 8

policyowner

Answer 8

a person entitled to exercise the rights and privileges in the policy

Question 9

premium

Answer 9

the money paid to the insurance company for the insurance policy

Question 10

accidental bodily injury

Answer 10

an unforseen and unintended injury that results from an accident rather than sickness

Question 11

cafeteria plan

Answer 11

type of employee benefit plan that allows insureds to choose between different types of benefits

Question 12

cancellation

Answer 12

termination of an in-force insurance policy, by either the insured or insurer, prior to the expiration date on policy

Question 13

comprehensive coverage

Answer 13

health insurance that provides coverae for mot types of medical expenses

Question 14

deductible

Answer 14

a specified dollar amount that the insured must pat first before the insurance company will pay the policy benefits

Question 15

lump sum

Answer 15

a payout method that pays the beneficiary the entire benefit in one payment

Question 16

nonrenewal

Answer 16

termination of an insurance policy at its expiration fate y not offering a continuation of the existing policy or a replacement policy

Question 17

riders

Answer 17

added to the basic insurance policy to add, modify, or delete policy provisions

Question 18

sickness

Answer 18

an illness, which first manifests itself while the policy is in formce

Question 19

tax exempt

Answer 19

not subject to taxation

Question 20

taxable

Answer 20

subject to taxation

Question 21

underwriting

Answer 21

risk selection and classification process

Question 22

Guaranteed renewable

Answer 22

a policy that is written on a noncancellable basis with the right to renew guaranteed

Question 23

irrevocable beneficiary

Answer 23

beneficiary who has vested interest in the policy resulting in the policy owner not being able to exercise certain rights without beneficiaries consent

Question 24

NAIC (National Association of Insurance Commissioners)

Answer 24

An organization composed of insurance commissioners from all 50 States

Question 25

total disability

Answer 25

inability of the insured to preform any occupation for which the insured is reasonably suited by education, training, or experience.

Question 26

waiver

Answer 26

relinquishment of a right or interest

Question 27

Adjusted gross income

Answer 27

gross income (all income) minus adjustments to income

Question 28

Affordable care act (ACA or PPACA)

Answer 28

a federal law that mandates increased preventive, educational, and community-based health care services, and that established the health insurance marketplace to make health coverage available to any uninsured individuals.

Question 29

Estate

Answer 29

a persons net worth

Question 30

overinsurance

Answer 30

insurance that exceeds in amount the actual value of the person or property insured or insurance in a greater amount than the insured can afford

Question 31

tax deductible

Answer 31

a qualified expense that may reduce the amount of income subject to taxation

Question 32

taxable

Answer 32

subject to taxation

Question 33

aggregate

Answer 33

combined;total

Question 34

authorized insurer

Answer 34

insurer who has received a certificate of authority from the department of insurance to transact insurance in this state

Question 35

business entity

Answer 35

corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

Question 36

cease and desist

Answer 36

to stop; discontinue

Question 37

commission

Answer 37

payment to the agent by the insurance company for placing insurance, usually percentage of the policy premiumm

Question 38

commissioner

Answer 38

the head of the division of insurance

Question 39

disclosure

Answer 39

revealed information to help someone make an intelligent and educated decision

Question 40

exempt

Answer 40

not subject to an obligation

Question 41

immunity

Answer 41

exemption from a duty or legal obligation or protection against a liability

Question 42

inducement

Answer 42

an offer that attempts to influence the other party

Question 43

moral turpitude

Answer 43

conduct that is contrary to community standards of justice, honesty, or good morals

Question 44

promulgate

Answer 44

to make public, to put into action (laws, court decrees)

Question 45

solvency

Answer 45

ability to meet financial obligations

Question 46

salute

Answer 46

a formal written law enacted by legislature, insurance statutes can be found i the state insurance code

Question 47

subpoena

Answer 47

an order for someone to appear as a witness or submit testimony or evidence

Question 48

benefit period

Answer 48

a period of time during which benefits are paid under the policy

Question 49

enrollee

Answer 49

a person enrolled in a health insurance plan, an insured. (doesn't include dependents of the insured)

Question 50

pre-existing conditions

Answer 50

conditions for which the insured has received a diagnosis, advice care, or treatment during a specific time period prior to the application for health coverage

Question 51

premium

Answer 51

money paid to the insurance company for the insurance coverage

Question 52

Social Security Disability insured Status

Answer 52

fully insured or currently insured, depending on the number of coverage credits earned

Question 53

waiting period

Answer 53

a period of time that must pass after a loss occurs before the insurer start paying policy benefits

Question 54

dependent

Answer 54

someone relying on the insured for support

Question 55

nonrenew

Answer 55

terminate an insurance policy at its expiration date

Question 56

PPACA (Patient Protection and Affordable Care Act)

Answer 56

a federal law that mandated health care services for all eligible U.S. citizen and nationals

Question 57

solicitation

Answer 57

an attempt to persuade a person to buy an insurance policy, and it can be orally or in writting

Question 58

suitability

Answer 58

a requirement to determine if an insurance product is appropriate for a customer

Question 59

warranty

Answer 59

Absolutely true statement upon which the validity of the insurance policy depends

Question 60

Representations

Answer 60

statements believed to be true to the best of ones knowledge