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95 Cards in this Set

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OTHER STATES INSURANCE
one or more state must be shown on info page

if so, if eR begins work in any of the states listed, policy applies as if that state werre listed in policy for workers comp purposes
VOLUNTARY COMPENSATION ENDORSEMENT
iR agrees to pay workers comp benefits to eEs not covered under the law
ISO BUSINESS AUTO COVERAGE
widely used by bus firms to insure commercial auto exposures
Commercial Auto Insurance:

COMPREHENSIVE COVERAGE
iR will pay for loss to covered auto or its equipment from any cause except the covered auto's collision w/another object or its overturn
Commercial Auto Insurance:

SPECIFIED CAUSES-OF-LOSS COVERAGE
Only losses from certain specified perils are covered
Commercial Auto Insurance:

COLLISION COVERAGE
loss caused by covered auto's collision w/another object or its overturn is covered
Commercial Auto Insurance:

GARAGE COVERAGE FORM
specialized form for auto dealers
Commercial Auto Insurance:
Garagekeepers Coverage:

DIRECT COVERAGE OPTION
indeminifies customers for their losses even though garage has no legal liability to do so
Commercial Umbrella Policy:

ULTIMATE NET LOSS
total sum iD is legally obligated to pay
Commercial Umbrella Policy:

RETAINED LIMIT
1) available limits of underlying insurance listed in declarations
2) self insurance retention
Commercial Umbrella Policy:

SELF INSURED RETENTION (SIR)
insured musts satisfy this if loss is not covered by any underlying insurance but is covered by the umbrella policy
COMMERCIAL CRIME COVERAGE FORM
can be added to package policy to cover crime exposures of bus firms
Commercial Crime Coverage Form:

ROBBERY
unlawful taking of property from the care and custody of a person by someone who 1)has caused or threatens to cause bodily harm or 2)has committed an obviously unlawful act witnessed by that person
Commercial Crime Coverage Form:

SAFE BURGLARY
unlawful taking of property from within a locked safe or vualt
Commercial Crime Coverage Form:

THEFT
unlawful taking of money, or other property. includes robberty and burglary as well as shoplifting and employee theft
Commercial Crime Coverage Form:

OTHER PROPERTY
any tangible property other than money or securities that has intrinsic value
Commercial Crime Coverage Form:

CYBER RISK INSURANCE
tailored to meet specific computer loss exposures of bus firms
Commercial Crime Coverage Form:

DISCOVERY FORM
covers losses that are discovered during the policy period or w/in 60 days after the policy's expiration date regardless of when the loss occurred
Commercial Crime Coverage Form:

LOSS-SUSTAINED FORM
covers losses that occur during the policy period and are discovered during policy period or w/in one year after policy expires
Commercial Crime Coverage Form:

LOSS SUSTAINED DURING PRIOR INSURANCE
current policy provides covg for a loss that occured during the term of the prior plicy but was discovered only after the discovery period uner the prior policy had expired
Commercial Crime Coverage Form:

STANDARD FORM NO. 24, FINANCIAL INSTITUTION BOND
widely used and designed for banks
Commercial Crime Coverage Form:
Financial Insitution Bonds:

FIDELITY COVERAGE
covers losses resulting directly from the dishonest or fraudulent acts of eE(s)
SURETY BONDS
provides monetary compensation if the bonded party fails to perform certain promised acts
Surety Bonds:

PRINCIPAL
party who agrees to perform certain acts or fulfill certain obligations
Surety Bonds:

OBLIGEE
party who receives the proceeds of bond if principal fails to perform
Surety Bonds:

SURETY (OBLIGOR)
party who agrees to answer for the debt, default, or obligation of another
Surety Bonds:

BID BONDS
type of contract bond. owner is guaranteed that the party awarded a bid on a project will sign a contract and furnish a performance bond
Surety Bonds:

PERFORMANCE BOND
type of contract bond. owner is guaranteed that work will be completed according to the contract specifications.
Surety Bonds:

PAYMENT BOND
type of contract bond. guarantees that the bills for labor and materials used in building the project will be paid by contractor when bills are due.
Surety Bonds:

MAINTENANCE BOND
type of contract bond. guarantees that poor workmanship by the prinicipal will be corrected, or defective materials replaced.
Surety Bonds:

LICENSE AND PERMIT BOND
guarantees that the person bonded will comply with all laws and regulations that govern his or her activities.
Surety Bonds:

PUBLIC OFFICIAL BONDS
guarantees that public officials will faithfully perform their duties for the protection of the public
Surety Bonds:

JUDICIAL BONDS
guarantee that the party bonded will fulfill certain obligations specifid by law
Surety Bonds:

FIDUCIARY BOND
type of judicial bond. guarantees that the person who is responsible for the property of another will faithfully perform all required duites, give an accounting of all property and make up any deficiency for which the courts hold the fiduciary liable.
Surety Bonds:

COURT BOND
type of judiciary bond. designed to protect one person (obligee) against loss in the event that the person bonded does not prove that he or she is legally entitled to the remedy sought against the obligee
Surety Bonds:

ATTACHMENT BOND
type of judicial bond. guarantees that if the court rules against the plaintiff who has attached the property of the defendant in a lawsuit, the defendant will be reimbursed for damages as a result of having the prperty attached.
Surety Bonds:

FEDERAL SURETY BONDS
guarantees that bonded party will comply w/federal standards.
PREMATURE DEATH
death of a family head w/outstanding unfulfilled financial obligations
HUMAN LIFE VALUE APPROACH
present value of family's share of deceased breadwinner's future earnings
NEEDS APPROACH
analyzes various needs that must be met if family head should die
Needs Analysis:

ESTATE CLEARANCE FUND
cleanup fund when family head dies. burial expenses, uninsured medical bills, installment debts, estate admin expenses
Needs Analysis:

READJUSTMENT PERIOD
one or two year period following breadwinner's death
Needs Analysis:

DEPENDENCY PERIOD
period until youngest child reaches 18
Needs Analysis:

BLACKOUT PERIOD
period from time that social security survivor benefits terminate to the time the benefits are resumed
CAPITAL RETENTION APPROACH/CAPITAL NEEDS ANALYSIS
capital rentention approach preserves capital needed to provide income to family
YEARLY RENEWABLE TERM INSURANCE
provides life insurance protection for only one year
LEVEL PREMIUM METHOD
premiums do not increase from year to year but remain level throughout the policy paying period
LEGAL RESERVE
redundant or excessive premiums paid under the level premium method during the early years.
NET AMOUNT AT RISK
diff between the face amt of the policy and the legal reserve

represents the pure insurance portion of the policy

declines as legal reserve decreases
CASH VALUE
not legal reserve

cash values are initially below the legal reserve because loading for expenses and high first year acquisition expenses
TERM INSURANCE
provides temporary protection

most renewable w/o evidence of insurability

most convertible to cash value policy w/o evidence of insurability
Term Policy Conversion:

ATTAINED AGE METHOD
premium charged based on insured's attained age at the time of conversion
Term Policy Conversion:

ORIGINAL AGE METHOD
premium based on insured's original age when term was first purchased
DECREASING TERM INSURANCE
face amt gradually declines, premium level
REENTRY/REVERTIBLE TERM
renewal premiums based on select (lower) mortality rates if insured can demonstrate acceptable evidence of insurability
WHOLE LIFE INSURANCE
cash value policy that provides lifetime protection
ORDINARY LIFE INSURANCE/STRAIGHT LIFE/CONTINOUS PREMIUM WHOLE LIFE
provides lifetime protection to age 100

if insured is still alive, face amt is paid

level premiums
Whole Life Insurance:

LIMITED PAYMENT POLICY
insurance is permanent, lifetime protection,

premiums level, but paid only for a certain period
Whole Life Insurance:

SINGLE PREMIUM WHOLE LIFE
provides lifetime protection w/a single premium
ENDOWMENT INSURANCE
pays face amt of insurance if insured dies within a specified period

if insured survives to the end of endowment period, face amt paid to policyowner
Whole Life Insurance:

VARIABLE LIFE INSURANCE
fixed premium policy in which the death benefit and cash values vary according to the investment experience of a separate acct maintained by insurer
Whole Life Insurance:

UNIVERSAL LIFE INSURANCE/FLEXIBLE PREMIUM LIFE INSURANCE
provides protection under a contract that unbundles the protection and savings components
Whole Life Insurance:

VARIABLE UNIVERSAL LIFE INSURANCE
like universal except policyowner determines how premius are invested, and policy does not guarantee a minimum interest rate or minimum cash value
Whole Life Insurance:

CURRENT ASSUMPTION WHOLE LIFE INSURANCE/INTEREST-SENSITIVE WHOLE LIFE
nonparticipating whole life policy in which cash values based on insurer's current mortality, investment, and expense experience
MODIFIED LIFE POLICY
whole life policy in which premiums are lower for the first three to five years and higher thereafter
PREFERRED RISKS
lower rates to those whose mortality experience is expected to be lower than avg
SECOND TO DIE LIFE INSURANCE
insures 2 ore more lives and pays the death benefit upon the death of the second or last insured
JUVENILE INSURANCE
life insurance purchased by a parent or adult on the lives of children younger than a certain age
SAVINGS BANK LIFE INSURANCE
type of life insurance that was sold originally by mutual savings banks in three states
INDUSTRIAL LIFE INSURANCE/HOME SERVICE LIFE INSURANCE
issued in small amts

premiums payable weekly or monthly
OWNERSHIP CLAUSE
policyowner possesses all contractual rights in the policy while insured is living
ENTIRE CONTRACT CLAUSE
life insurance policy and attached app constitute the entire contract between the parties
INCONTESTABLE CLAUSE
insurer cannot contests the policy after in has been in force two years during the insured's lifetime
SUICIDE CLAUSE
if insured commits suicide w/in 2 years after the policy is issued, face amount of insurance will not be paid

there will be a refun of premiums paid
GRACE PERIOD
policy owner has 31 days to pay an overdue premium

universal and other flex premum policies have longer grace periods
REINSTATEMENT PROVISION
permits owner to reinstate a lapsed policy
MISSTATEMENT OF AGE OR SEX CLAUSE
if insured's age or sex is misstated, amt payable is the amt that the premiums paid would have purchased at the correct age and sex
CHANGE OF PLAN PROVISION
allows policyowners to exchange their present policies for different contracts
ABSOLUTE ASSIGNMENT
all ownership rights in policy are transferred to new owner
COLLATERAL ASSIGNMENT
policyowner assigns a life insurance policy as collateral for a loan
AUTOMATIC PREMIUM LOAN PROVISION
an verdue premium is automatically borrowed from the cash value after the grace period expires
PAID UP ADDITIONS OPTION
dividends used to purchase a small amt of paid up whole life insurance
REDUCED PAID UP INSURANCE
cash surrender value applied as a net single premium to purchase a reduced paid up policy
EXTENDED TERM INSURANCE
net cash surrender value used as a net single premium to extend full face amt of policy into the future as term insurance
INTEREST OPTION
policy proceeds are retained by insurer and interest is periodically paid to beneficiary
FIXED PERIOD OPTION
policy proceeds are paid to beneficiary over some fixed period of time
FIXED AMOUNT OPTION
fixed amt is periodically paid to beneficiary
LIFE INCOME
installment payments are paid only while beneficiary is alive and cease on the beneficiary's death
LIFE INCOME WITH PERIOD CERTAIN
life income is paid to beneficiary with certain number of guaranteed payments

if primary beneficiary dies before receiving the gruaranteed number of pmts, remaining pmts paid to contingent
LIFE INCOME WITH REFUND
if beneficiary dies before receiving pmts equal to the amt of insurance, difference is refunded in installments or in a lump sum to another beneficiary
JOINT AND SURVIVOR INCOME
income pmts paid to two persons during their lifetimes such as husband and wife
WAIVER OF PREMIUM PROVISION
if insured becomes totally disabled from bodily injury or disease before some stated age, all premiums coming due during disability period are waived
GUARANTEED PURCHASE OPTION
permits policyowner to purchase add'l amts of life insurance t s[ecified times in the future w/o evidence of insurability
ACCIDENTAL DEATH BENEFIT RIDER (DOUBLE INDEMNITY)
doubles the face amt of life insurance if death occurs as a result of an accident
COST OF LIVING RIDER
allows policyowner to purchase one-year term insurance equal to the percentage change in the CPI with no evidence of insurability