Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
what's a nonparticipating
policy? |
Life insurance that
does not provide policy dividends; also called a nonpar policy. participating po |
|
|
what's a participating policy?
|
Life
insurance that provides policy dividends; also called a par policy |
|
|
what's term insurance?
|
Life insur-
ance protection for a specified period of time; sometimes called tempo- rary life insurance. |
|
|
what's a whole life policy?
|
An
insurance plan in which the policyholder pays a specified premium each year for as long as he or she lives; also called a straight life policy, cash-value life policy, or ordinary life policy. |
|
|
what is cash value?
|
The amount
received after giving up a life insurance policy. |
|
|
what kind of insurance is universal life?
|
A whole life
policy that combines term insurance and investment elements. |
|
|
what is a beneficiary?
|
A person
designated to receive something, such as life insurance proceeds, from the insured. |
|
|
what is a nonforfeiture clause?
|
A
provision that allows the insured not to forfeit all accrued benefits. |
|
|
what is a incontestability clause ?
|
A
provision stating that the insurer cannot dispute the validity of a policy after a specified period. |
|
|
what is the suicide clause?
|
A provision
stating that if the insured dies by suicide during the first two years the policy is in force, the death benefit will equal the amount of the premium paid. |
|
|
what is a rider?
|
A document
attached to a policy that modifies its coverage. |
|
|
double indemnity ?
|
A
benefit under which the company pays twice the face value of the policy if the insured’s death results from an accident. |
|
|
what is a chartered life underwriter?
|
otherwise known as a CLU, its A life insurance
agent who has passed a series of college-level examinations on insurance and related subjects. |
|
|
what is a interest-adjusted index ?
|
A
method of evaluating the cost of life insurance by taking into account the time value of money. |
|
|
what is a annuity?
|
A contract that
provides a regular income for as long as the person lives. |
