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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Absolute Assignment |
A transfer by the policyholder of all control and rights to a thrid party. |
transfer |
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Accumulation at Interest Option |
A divided or settlement option under which the policy holder allows his dividends or proceeds to accumulate interest with the company. Although the divideds or proceeds are not generally taxable, interest earned is. |
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Actuary |
Once concerned with application of probability and statisical theory to insurance, utilizing the law of large numbers. |
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ADB Accidental Death Benfit Double Indemnity |
A rider added to a life policy that will pay double the face amount if the insured dies as a result of accident, generally within 90 days of the accident. |
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Adverse Selection |
Selcection not in favor of the company. Thendency of pooper ricks to want insurance more often than standard risk. Example a person who is ready sick would like to buy health insurance. |
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Adverse underwriting Decisions, Consumer Rights: |
Under the fair credit reporting act, when an adverse underwriting decision is made, the insurer must provide the applicatant or polocyholder with specific written reasons for the decision, or advise the individual that specific reasons are avaiable upon written request. Upon receipt of the written request, the insurer must specific reasons for the adverse decision and the names and addresses ofthe sources that provided the information. |
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Agent / Producer |
The individual appointed by an insurance company to solicit and neqotate insurance contracts on its behalf. Agents or Produccers represent th company, not th client. |
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Alien Company |
An insurer organized and domiciled in a country other than the United States |
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Annuitant |
An agreement by an insurer to make periodic payments that continue durning the lifetime of the annuities pay while your alive and life insurance pays when you die. Life insurance procedds create an estate, while annunities are used to liquidate an estate over a period of time. All annuities are insurance products and a life insurance licenese is required. |
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Application |
A form on which the prospective insured states facts requested by the insurer and on the basis of which (together with any information from medical examiners, attending physcians, hospitals. |
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Applicant |
The party making application to the insurance company for the policy. Applicants muse provide the insurer with the truth to the best of knowledge, which is known as a "respresentation." |
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Assignee |
The person to whom policy rights are assigned in whole or in part by the policyholder, who is known as the Assignor. On Life insurance there are 2 types of assignment. Absolute and Collateral |
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Assignment |
Transfer of rights in a policy to another by policyholder. For example, if you brought a life insurance policy on minor child, you are the owner and child is the insured. When the child reach age 21, you could assign all rights of ownership in the policy to the child. This is an absolute assignment. |
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Attained Age |
The present or current age of the insured. Upon convesion, premiums are based on the current age of the insured. |
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Authorized Company |
An insurer premitted to sel insurance within a state. Must obtain a Certificate of Authority from the Commissioner or Director of Insurance of every state they sell in. |
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