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15 Cards in this Set

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  • Back
ABSOLUTE ASSIGNMENT
The policyowner assigns all control and rights to a third party
ACCEPTANCE
When an insurance policy is delivered or issues (company usually gives the acceptance
ACCIDENTAL DEATH INSURANCE
A type of insurance that provides payment if death of the insured results from an accident. Accidental death insurance is often combined with a dismemberment insurance, thus forming an Accidental Death & Dismemberment Policy
ACCIDENTAL MEANS
The unexpected cause of an accidental bodily injury. Under the accidental means definition, the mishap itself must be accidental
ACCUMULATION UNIT
A share of a variable annuity fund, the value of whichis calculated to be the value of the entire fund, divided by the number ofaccumulation units
ACQUISITION COSTS
The immediate costs to an insurance company to put a policy on the books. This could include clerical work, commissions inspection costs, medical examiner's fee, underwriting costs, etc
ACTUARY
A person who specializes in the mathematics of insurance to calculate rates, reserves, etc
ADHESION
The client can take or leave a contract of adhesion. The is no provision for compromise
ADVERSE SELECTION
Client selection that is against the insurance company. The tendency of more poor risks to buy or maintain insurance than good risks
AGENT
The person appointed by the insurance company to represent them to solicit, negotiate, effect or countersign insurance contracts on their behalf
AMORTIZATION
The reduction of a debt by regular payments of interest andprincipal sufficient to pay off a loan by maturity. Accounting procedure that gradually reduces the cost value of a limited life or intangible asset through periodic charges to income in accordance with a predetermined schedule
ANNUITIZE
To begin a series of payments from an Annuity. When a person who has been investing in an annuity retires, the built-up capital is annuitized and a pay out schedule is selected. The insurance company thatsold the annuity then pays a dollar (may be fixed or variable) amount for an extended period of time, often for the rest of the policyholders life.
ANNUITY
A form of contract sold by life insurance companies that guarantees a fixed or variable payment to the annuitant at some future time, usually retirement. All capital and investment proceeds that remaininside the annuity, accumulate tax-deferred
APPLICANT
Life insured responsible for filling out the application for life insurance policy (unless a minor child). The applicant is sometimes referred to as a client, prospect or insured
ASSIGNMENT
To transfer the rights in a policy to another person other than the policyowner