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248 Cards in this Set

  • Front
  • Back
The assingment by the policyowner of all control and rights to a third party.
Absolute Assignment
A fortuitous event; unforeseen and unintended
Accident
A form of Health Insurance that provides payment if death of the insured results from accident.
Accidental Death Insurance
Insurance against bodily injury, disability, or death by accident or accidental means, or expense thereof, or against disability or expense resulting from sickeness and
Accident and Sickness
The unexpected cause of an accidental bodily injury.

-If a person does something to contribute to the accident, the calim would not be paid under this restrictive definition.
Accidental Means
A dividend option under which the policyowner allows dividends to accumulate at interest with the company
Accumulation at Interest Option
One concerned with the application of probability and statistical theory to insurance.
Actuary
Accidental Death Benefit, also known as double indemnity. There is another variation called triple indemnity
ADB
Accidnetal and Death Dismemberment Insurance
AD&D
The person appointed by a court to settle a deceased's estate, sometimes called a executor
Administrator
Selection against the insurance company. The tendency of poorer risks to want insurance more often than standard risks.
Adverse Selection
When an adverse underwriting decision is made, the institution or agent responsible must provide the applicant or policyowner with specific written reason for the decision, or advise the individual that specific reasons are available
Adverse Underwriting Decisions, Consumer Rights
The individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance contracts on its behalf
Agent
Something that depends upon chance or is random.

It is derived from the Latin idea of "rolling the dice"
Aleatory
A contract in which both parties know that one or the other may receive more than paid in.

This payment is dependent upon a fortuitous event.
Aleatory contract
An insurer organized and domiciled in a country other than the United States
Allen Contract
The one receiving the Annuity and on whose life expectancy the rates are figured.
Annuitant
An amount of money, payable monthly or yearly, which liquidates a financial asset..


2. An agreement by an insurer to make periodic payment that continue during the survival of the annuitant
Annuity
The party making application to the insurance company for the policy
Applicant
A form on which the prospective insured states facts requested by the insurer and on the basis of which the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk.
Application
The person to whom policy rights are assigned in whole or in part by the policyowner
Assignee
The transfer of rights in a policy to someone other than the policyowner
Assignment
The present age of the insured ...
This is a facotr when a person converts Term Insurance to Whole Life Insurance or buys added Disability under a GIR provision
Attained Age
A person to whom authorization is given by an individual to exchange insurance with other persons.

Always present in a reciprocal insurance company
Attorney-In-Fact
An insurer permitted to sell insurance within a state, evidenced by a certificate of authority from the Insurance Commissioner, also called Admitted
Authorized Company
A provision in a Life policy authorizing the insurance company to use the loan value to pay premiums not paid by the end of the grace period
Automatic Premium Loan
Limits or excludes coverage when the insured is participating in specified types of air travel, such as private planes..

Coverage is usually fully in force for people on regularly scheduled commercial flights.
Aviation Clause
A person who may become eligible to recieve, or is receiving, benefits under an insurance plan, other that as a participant
Beneficiary
A contract of Health Insuracne that covers all of a class of persons not individually identified.
Blanket Insurance Contract
The generic term for those insurers who are authorized to use the designation Blue Cross or Blue Shield and the insignia of either.
Blue Plan
One who represents an insured in the solicitation, negotitation, or procurement of contracts of insurance, and who may render services incidental to those functions.
Broker
Life or health insurance written to cover business situations, such as key person, sole proprietor, partnership, corporations, etc.
Business Insurance
A contract of insurance that may be terminated by the insurance company or insured at any time.

Virtually every form of insurance is cancelable except Life Insurance and those health policies designated as guarranteed renewable, or non-cancelable and guaranteed renewable.
Cancelable
The termination of a contract of insurance in force by voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.
Cancellation
The maximum amount payable in one sum in the event of acccidental dismemberment. It is typically half of the face amount or principal sum.
Capital Sum
A dividend option under which the policyowner of a mutual contract receives the dividends in cash.

Not subject to tax.
Cash Dividend Option
The value reposing in a policy that is the legal property of the policyowner and that may be expected should the policy be surrendered for cash.
Cash Surrender Value
A statement evidencing that a policy has been written and stating the coverage in general. Often used with group coverage.
Certificate
A demand for payment under the insurance policy
Claim
The grouping of persons for the purpose of determining an underwriting or rating group into which a particular risk must be placed
Classification
In health insurance, a provision that the insured and insuracne company will share covered losses in agreed proportion.
Co Insurance
The assignment of part of the proceeds of an insurance policy to a bank as collateral to settle the loan balance that may exist at the insured's death. This agreement is temporary.
Collateral Assignment
A provision that can be included in a Life contract that provides that the primary beneficiary must outlive the insured by a specified period of time in order to receive the proceeds.
Common Disaster Provision
A form of health insurance that combines the coverage of Major Mediacl and Basic Medical Expense contracts into one broad contract that provides coverage for almost all types of medical expense with few internal limits.
Comprehensive Health or Major Medical Insurance
The withholding of facts by an applicant for insurance that materially affect an insurance risk or loss
Concealment
A provision that, if premium settlement accompanies the application, coverage shall be in force from the date of application provided the insurance company would have issued the coverage on the basis of facts as revealed by the application and other ususal sources of underwriting information.
Conditional Receipt
a contract of health insurance that provides that the insured may renew the contract to a stated date or an advanced age, subject to the right of the insurer to decline renewal only under conditions defined in the contract
Conditionally renewable
The part of an insurance contract setting out the responsibilities of both the insured and the insurer.
Conditions
The exchange of value on which a contract is based. In life and health insurance, the consideration is the premium plus the statements in the application
Consideration
A clause in a life policy specifying the premium due for the insurance protection and the frequency of payment....also called MODE
Consideration clause
The person or persons named to receive benefits if the primary beneficiary is not alive
Contingent Beneficiary
A legal agreement between two parties for consideration, such as an insurance policy
Contract
Group insurance for which the employees pay part of the premium
Contributory Group
Life Insurance coverage written on the agent's own life and on the lives of such persons as the agent's relatives and business associates, or employees of a company in which an agent has an interest
Controlled Business
A term policy that can be converted to a permanent type of coverage without proof of insurability
Convertible Term Insurance
A deductible used only in Comprehensive Major Medical that applies between benefits paid by the basic plan and the start of the major medical benefits
Corridor Deductible
Insurance on a debtor in favor of a lender, intended to pay off a loan or the balance due if the insured dies or is disabled
Credit Insurance
The policy proceeds to be paid on the death of the insured
Death Benefit
Dollars or percentage of expense that will not be reimbursed by the insurer
Deductible
Term insurance whose amount of coverage starts out at the full amount, then gradually decreases until the expiration date of the policy
Decreasing Term Insurance
An annuity on which payments to the annuitant are delayed until a specified future date
Deferred Annuity
An insurance company that sells its policies through licensed agents who represent the inmsurere exclusively, rather than through independent local agents who represent several insurance companies
Direct Writer
A form of health insurance that provides periodic payments to replace income, actually or presumpotively lost, when the insured is unable to work as a result of sickness or injury
Disability Income Insurance
Benefits paid for the loss of eyesight or limbs
Dismemberment Benefits
The return of part of the premium paid for a participating policy
Dividend
Ways an insured may receive policy dividends
Dividend Options
An insurance company formed under the laws of the state in which the insurance is written
Domestic Insurance Company
A policy, usually offering blanket coverage up to a very high maximum, for certain specified diseases only, such as cancer
Dread Disease Policy
Payment of twice the basic benefit in the event of loss resulting from specified cause or under specific circumstances
Double Indemnity
The portion of the premium for which policy protection has already been given during the now-expired poriton of the policy term
Earned Premium
The date on which an insurance policy or bond goes into effect and from which protection is furnished
Effective Date
The period following the probationary period, during which the employee is eligible to obtain non-medical coverage under the Group Life plan
Eligibility Period
A form attached to an insurance contract changing part of the contract...

Sometimes called a RIDER
Endorsement
A permanent life policy for which premiums are paid for a limited number of years, such as endowment at age 65.
Endowment Policy
The concept is related to waiver.

Once a person or company waives a known right, the waiver cannot be reversed.
Estoppel
Causes, conditions, or property listed in the policy that are not covered and for which no benefits are payable
Exclusions
The loss record of an insured, a class of coverage, or an insurance company
Experience
A life insurance non-forfeiture option, under which the insured uses the policy's cash value accumulation to purchase single-premium Term Insurance in an amount equal to the original policy face amount
Extended Term Option
The amount indicated on the face of the policy that will be paid at death or when the policy matures
Face Amount
A person who occupies a position of special trust and confidence - for example, in handling or supervising the affairs of another
Fiduciary
A settlement option under which the beneficiary receives a fixed amount for an unspecified period of time.

Payments continue until the principal and interest are depleted
Fixed Amount Option
A settlement option under which the beneficiary receives a regular income for a specified period of time.

At the end of the period, all principal and interest have been paid out.
Fixed Period Option
An insurer organized under laws of a state other than the state in which the insurance is writtern
Foreign Company
An intentional misrepresentation made by a person with intent to take advantage of another
Fraud
An individual appointed by an insurere to administer its business in a given territory.

Responsible for building the agency and service force.
General Agent
A period of time after the premium due date during which a policy remains in force without penalty, even though the premium due has not been paid
Grace Period
A contract of insurance made with an employer or other entity taht covers a group of people identified as individuals by reference to their relationship to the entity.
Group Contract
Life insurance that a person is eligible to purchase through membership in a group. The group may not be formed just to buy insurance.
Group Life Insurance
A rider in Life and Health Insurance contracts that permits the insured to buy additional prescribed amounts of insurance, at prescribed intervals, without evidence of insurability
Guaranteed Insurability
A contract that gives the insured continued coverage in return for the timely payment of premiums for a substantial period of time.

During that period of time, the insurer has no no right to make any change in any provision of the contract other than a change in the premium rater for all insureds in the same class
Guaranteed Renewable
Any factor tending to make a policyowner a less desirable risk for the insuring company.
Hazard
Broadly, coverage to provide benefits on the occurrence of disabling sickness or accident, accidentally death or dismemberment, or loss of income due to disability
Health Insurance
An organization of health providers' this is the Ohio term for an HMO
Health Insuring Corporation
A policy that pays a stated amount per week or month while the insured is hospitalized, without reference to expenses actually incurred.
Hospital Expense or Income Policy
A policy that covers daily hospital room and board charges and also covers miscellaneous hospital expenses ( X -rays),. It also covers emergency treatment charges and many times will also includee a surgical benefit
Hospitalization Expense Policy
A lump-sum Annuity on which the income payments to the annuitant begin at once
Immediate Annuity
Provides that, after the policy has been in force a certain length of time, the company can no longer contest or void it, expect for nonpayment of premiums or the insurer proving fraud. The time period is usually two years
Incontestable Clause
To restore the victim of a loss, in whole or in part, by payment, repaid, or replacement
Indemnify
Insurance is designed to restore the policyowner to the same financial condition enjoyed prior to a loss. The intent is to cover the aomunt of actual loss only; the insured should not profit from a loss situation
Indemnity
A contract of life or health insurance made with an individual that covers him, and in certain instances, specified members of the household
Individual Contract
Life insurance generally with a face amount of less that $1000, with premiums collected monthly or more frequently by the agent in person
Industrial Life
A patient admitted to a hospital as a resident patient
Inpatient
The acceptability of an applicant to the insurance company for insurance
Insurability
An interest in the case of an individual owning a policy on the life of another by which there will be a loss if the insured dies.
Insurable Interest
A contract or device for the transfer of pure risk to an insurer, who agrees, for a consideration, to indemnify or pay a specified amount for losses suffered by the insured.
Insurance
An age upon which current premium rates may be established. It is commonly based on age at last birthday, age at next birthday, or age at nearest birthday
Insurance Age
The common title for the head of a state Department of Insurance
Insurance Director
A contract or legal document that establishes the terms of agreement between the insurer and insured
Insurance Policy
A contract or legal document that establishes the terms of agreement between the insurer and insured
Insurance Policy
The party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits, or render service.

In prepaid hospital service plans, the insured is called the subscriber.
Insured
The insurance company assuming risk and agreeing to pay claims or provide services
Insurer
The clause in a policy that specifies, in brief, the contract's intent and benefits
Insuring Clause
A settlement option under which the insurer keeps the insurance proceeds and invests them on behalf of the beneficiary.
The beneficiary receives the interest from the investment. The proceeds remain the property of the beneficiary. The proceeds are not taxable but the interest is.
Interest Option
Cannot be charged without the named beneficiary's consent, and the irrevocable beneficiary takes over owner-like rights to the policy
Irrevocable Beneficiary
Payments are made to two annuitants, with the survivor continuing to receive payments after the first annuitant dies.
Joint and Survivorship Life Annuity
Payments continue to two annuitants for only as long as both live. On the death of either one, payments stop.
Joint life Annuity
Juvenile insurance on which the face amoutn increases by a multiple, usually five, of the original face amoutn when the insured reaches 21.
Jumping Juvenile
Life or health insurance on important employees whose death or disability would cause the employer financial loss. The insurance is usually owned by or paybale to the employer.
Key Person Insurance
The termination of a policy because of failure to pay the premium
Lapse
An insurance company must protect losses on a homogeneous group.
Risks are not usually considered insurable unless the insurere has a large enough base of previous loss experience to be able to accurately predict future losses.

It is the Law of Large Numbers that makes accurate predictions of similar risks possible. Mortality tables are based on groups of at least 10,000,000 people.
Law of Large Numbers
The amount required as a reserve to pay claims and benefits, using the mortality table and a maximum assumed interest rate prescribed by state law.
Legal Reserve
Life Insurance, the premium for which remains at the same level throughout the life of the policy
Level Premium Insurance
The amoutn of insurance protection in the Term policy remains constant during the policy period
Level Term Insurance
An annuity that provides a periodic income to the annuitant during the annuitant's lifetime
Life Annuity
An annuitant or a beneficiary is guaranteed to receive payments for a specified number of years or for life, whichever is longer. If the annuitant dies before all guaranteed payments have been made, the beneficiary receives the payments for the rest of the certain period
Life Annuity with Installments Certain
A settlement optiopn that provides for payments during the entire life of the payee. There are four methods:
Life Income Option
Insurance that pays a specified amount on the death of the insured, to his estate or to a beneficiary
Life Insurance
A permanent Life Insurane policy on which premiums are paid for a specified number of years or to a specified age of the insured.
Limited Pay life
The amount added to insurance costs to cover the operating expenses of the insurer
Loading
The amotn of cash value reposing in a policy that may be borrowed by the insured
Loan Value
A disability having duration longer than a short-term disability, which generally pays benefits from 13 weeks, 6 months, or 2 years . A 5 year payout would be called long term
Long Term Disability
An unpredictable reduciton in the quality, quantity, or value of something - for example, bodily injury, disease, property damage, physical disappearance of property, incurred expenses
Loss
Benefits paid for inability to work for remuneration because of disability resulting from accidental bodily injury or sickness. The loss of income may be real or presumptive
Loss of Income Benefits
The percentage of losses to premiums- usually losses incurred to premiums earned
Loss Ratio
The proceeds of a policy taken all at once
Lump Sum
A type of health insurance that provides benefits for most types of medical expenses incurred up to a high limit, subject to a deductible.
Major Medical Insurance
Insurance rates according to a company rate manual, which will vary from company to company
Manual Rates
The policy contract issued to the employer under a Group Insurance plan
Master Policy
A misrepresentation that would have been important or essential to the underwriter's decision to issue or rate the policy
Material Misrepresentation
A life policy is mature when the face amount is payable. Whole life matures at age 100.
Maturity
A medical benefits program administered by states and subsidized by the federal government.

Under this plan, various medical expenses will be paid to those who qualify, reagardless of age, subject to an income/asset test.
Medicaid
Benefits provided by a federal program as part of the Social Security program. They apply to persons over 65 years of age and certain disabled beneficiaries under the Social Security Disability Income program.
Medicare Benefits
Examination by a physician on behalf of an applicant for insurance or in substantiation of a claim
Medical Examination
A form of Health Insurance that provides benefits for medical, surgical, and hospital expenses. This term is used to include coverage under the names hospital-surgical expense insurance and medical insurance.
Medical Expense Insurance
Medical Information Bureau

An organization serving as a clearinghouse of medical information on risks reported to it by insurance companies that are members
MIB
Usually hospital charges other than room and board, such as X-rays, drugs, lab fees
Miscellaneous Expenses
The use of written or oral statements of the insured or insurance company misrepresenting the risk, terms, coverage, benefits, privileges, or estimated future dividends of any policy, or the health of the insured.
Misrepresentation
Provides that, if misstatement of age is discovered after policy issue, the company can, if the insured is currently alive, adjust the premium amount of future premiums and request payment of the additional premium the policyowner should have paid. If the insured has died, the company can adjust the face amount of the policy to fit the premium that was paid at the correct age before paying the claim.
Misstatement of Age Clause
The premium paid according to the mode of payment selcted by the policyyowner
Modal Premium
A condition of morals or habits that increases the probability of a loss from a peril
Moral Hazard
A table showing the incidence of sickness for a given group
Morbidity
A statistical table showing the number of deaths for all ages from 1 to 120
Mortality Table
In Life and Health Insurance, a policy from which the benefits are intended to pay off the balance due on a mortgage or meet the payments on a mortgage as they fall due upon or after the death or disability of the insured
Mortgage Insurance Policy
An incorporated insurance company whose governing body is elected by the policyowners. The policyowners share in the success of the company through possible receipt of policy dividends.
Mutual Insurance Company
An organization of insurance commissioners, designed to provide a way to exchange information and work toward uniformity of insurance regualtion among the states for the benefit of insureds.
National Association of Insurance Commissioners
The premiums paid minus cash value and any policy dividends paid as of the date the calculation is being made.
Net Cost
A contract of Health Insurance that the insured has a right to continue in force by payment of premiums, as set forth in the contract, for a substantial period of time, and that the insurere has no right to change
Non-cancelable
Any plan or program of insurance for which the employer pays the entire premium and the employee contributes no part of the premium
Non-contributory
A legal provision whereby the policyowner may take the accumulated values in a policy as

1. Piad up permanent insurance for a lesser amount
2. Extended Term Insurance
3. Lump sum payment of cash value, less any unpaid premiums or outstanding loans
Non-forfeiture Option
Insurance issued without a medical exam
Non-medical
A Health policy that covers off-the-job accident and sickness
Non-occupational
Insurance that does not pay policy dividends. Sometimes called NON-PAR
Non-participating
Companies organized under special state laws to supply Medical Expense Insurance, usually on a service basis. Blue plans, at the time of their inception, were an example
Non-profit Insurance Companies
An agent licensed in a state in which the agent is not a resident
Non-resident Agent
The impairment of health caused by accident related to conditions inherent in a person's occupation, or resulting from the nature of an employment
Occupation Accident
The impairment of health caused by continued exposure to condtions inherent in a person's occupation, or a disease caused by or resulting from the nature of an employment
Occupational Disease
A dividend option under which the insured has the company purchase one-year term insurance with the dividend
One-year term Dividend Option
A contract of Health Insurance in which the insurer reserves the unrestricted right to terminate coverage at any anniversary or, in some cases, at any premium due date, but does not have the right to terminate coverage between such dates
Optionally Renewable
Another term sometimes used interchangeably with Whole Life
Ordinary Life Insurance
The insured's age when the policy was initially purchased
Original Age
The existence of antoher contract covering the same interest and perils
Other Insurance
A patient who is not a bed patient in the hospital where he receives treatment
Outpatient
Life Insurance on which all premiums have been paid, but has not yet matured by death or endowment
Paid Up
The additional single-premium Life Insurance paid for by policy dividends and added to the policy's face amount
Paid-Up Additions
A condition in which, as a result of injury or sickness, the insured cannot perform all of the duties of his occupation. Partial disability follows a period of total disability
Partial Disability
Insurance that pays policy dividends. Issued by a mutual company. Sometimes called par.
Participating
Life Insurance sold to a partnership to protect against the loss of business continuity caused by the death or disability of a partner
Partnership Insurance
A rider or provision, usually found in juvenile policies, under which premiums are waived if the payor of the premium becomes disabled or dies while the child is still a minor
Payor Benefit
A contract provison that the company will share covered losses in agreed proportions. Also called co-insurance
Percentage Participation
Total disability from which the insured does not recover. When used as a definition of disability in a policy, permanent is presumed after a stated period of time
Permanent and Total Disability
Life Insurance with some type of cash value accumulation
Permanent Insurance
The written contact effecting insurance or the certificate thereof by whatever name called, and papers attached thereto and made a part thereof
Policy
The policyowner's share of a company's divisible surplus
Policy Dividends
A special, one time premium charge to offset, in whole or part, the first year acquisition cost rather than to amortize it over several years
Policy Fee
A loan taken by the policyowner from the insurere using the insurance cash value as collateral. Also called contract holder.
Policy Loan
The person who has the right to exercise the priviledges and rights in the policy contract. Also called contract holder
Policyowner
A conditoin of health or physical condition that existed before the policy was issued
Pre-existing Condtion
1. The consideration for the insurance

2. A periodic payment made to keep a policy in force
Premium
Provides comprehensive health care for members who pay a flat fee for services, regardless of whether outpatient or hospital treatment is needed
Prepaid Hospital Service Plan
The named beneficiary first to receive proceeds or benefits, if living, when proceeds or benefits are due
Primary Beneficiary
The full face amount payable in one sum in event of accidental death and severe accidental dismemberment
Principal Sum
Ther termination of a contact with premium charge being adjusted in proportion to the exact time the protection has been in force
Pro Rata Cancellation
A period of time between the effective date of a Health policy and the date coverage begins for sickness
The amount payable by a policy, usually used in reference to the face amount of a Life policy payable at death of the insured
A formal statement by the insured to the insurance company regarding a loss. The purpose is to place before the company sufficient information concerning the loss to enable it to determine its liability under the policy
Proof of Loss
This term is used interchangeably with coverage to denote insurance provided under the terms of a policy
Protection
A policy issued with an extra premium charge because of physical or moral impairment
Rated
The per-unit cost of insurance. Life Insurance is priced based on units of $1,000
Rate
A policy issued to an applicant that reflects a higher rate due to the presence of a greater risk, in the eyes of the underwriter. Rated up policies often often result from substandard health cases
Rated Up Policy
Any practice that involves the covert return of money or other valuable consideration to an applicant in ordre to induce a sale, it is considered an illegal act
Rebating
A health policy provision defining the duration of time during which the recurrence of a condition will be considered a continuation of a prior period of disability or confinement
Recurring Clause
A non-forfeiture option under which the insured uses the cash value of his present policy to purchase a single-premium Whole Life policy, at attained-age rates, for a reduced face amount. The policy will then stay in force to age 120
Reduced Paid-Up Insurance Option
A dividend option under which the policyowner has the dividend deducted from the next premium due on the policy
Reduced Premium Dividend Option
Provides Annuity payments for the annuitant's lifetime with the guarantee that, in no event, total income will be less than the purchase price of the contract.

If the annuitant dies before receiving this amount, the differnece is paid to a named beneficiary
Refund Life Annuity
The payment of an amount of money related to the amount of the loss to or on behalf of the insured upon the occurrence of a defined loss
Reimbursement
Provides the conditions under which a lapsed policy may be reinstated, if approved by the insurance company
Reinstatement Clause
The agreement between insurance companies under which one accepts all or part of the risk of loss of the other
Reinsurance
Term insurance that can be renewed without proff of the insured's insurability
Renewable Term
The continuation in full force and effect of a policy that is about to expire
Renewal
The facts that the applicant represents as true and accurate to the best of his knowledge and belief
Representations
The amount that, when increased by future premiums on outstanding policies and interest on those premiums, will enable the company to meet the future death claims that will arise because of those contracts of insurance
Reserve
A form attached to a policy that expands or decreases its benefits or excludes certain conditions from coverage
Rider
The uncertainty of loss that exists whenever more than one outcome is possible. In the area of Life Insurance, death is certain, but time is uncertain
Risk
The process of selecting insureds with a normal life expectancy
Risk Selection
A list of specified amounts payable for surgical procedures, dismemberment treatments, anciallary expenses
Schedule
An injury to the body of the insured inflicted by the insured, usually not covered
Self-inflicted Injury
An arrangement by the insurer to pay certain vendors of health care services for serving covered persons. These arrangements may preclude or limit any additional charges for the defined services.
Service Plans
A method of receiving Life Insurance proceeds other that in a lump sum
Settlement Option
A form of Health Insurance against loss by illness or disease. Illness or disease does not include accidental bodily injury. Sickness Insurance may provide benefits for lsos of time or expense incurred by pregnancy
Sickness Insurance
An annuity purchased with one lump sum payment
Single Premium Policy
A person who finds insurance prospects for an agent or broker
Solicitor
A risk that meets the same conditions of health, physical condition, and morals as the usual tabular risks on which the rate is based
Standard
A law adopted by most states that provides that any cash value accumulation or its equivalent must be made available to the policyowner should he stop paying the premiums
Standard Non-forfeiture Law
A set of statutory provisions required by most states to be included in every Health policy issued. Also called Uniform Policy provisions or Mandatory Policy provisions. Created with the cooperation of the NAIC.
Standard Provisions
A person entitiled to Life Insurance protections without extra rating or special restrictions
Standard Risk
The specified amount of money a policy will pay to or on behalf of the insured upon the occurrence of a defined loss
Stated Amount
An incorporated insurance company with capital divided inot shares and owned by the shareholders. Dividends are paid to stockholders and subject to income tax
Stock Insurance Company
A risk not acceptable at standard rates
Substandard Risk
A clasue stating that, if the insured commits suicide within a specified period of time, the policy will be voided. Paid premiums are refunded. The time limit is genreally two years
Suicide Clause
A list of specific maximum amounts payable for surgical procedures in Health policies
Surgical Schedule
Withdrawing the cash value of a policy and surrendering the policy to the insurer
Surrender
Life Insurance that does not have cash accumulation and is issued to remain in force for a specified period of time, following which it is subject to renewal or termination
Term Insurance
The next person/organization in line behind the contingent beneficiary to receive policy proceeds if both the primary and contingent beneficiaries are deceased. Also known as the final beneficiary.
Tertiary Beneficiary
A Uniform Provision on Health Insurance policies specifiying that, after a given number of years, no statements made in the applictation shall be used to deny a claim or void the policy and that no claim shall be denied or reduced on the grounds that a disease or physical condition not excluded at time of issue existed prior to effective date
Time limit on Certain Defenses
A degree of disability from injury or sickness that prevents the insured from performing duties for remuneration or profit. The definition in any given case depends on the wording in a covering policy
Total Disability
A form of Accident Insurance limiting coverage to accidents occurring while the insured is traveling
Travel Accident
Using misrepresentation to induce a policyowner to terminate an existing policy to take a new policy. In most states this is illegal
Twisting
An insurer not permitted to sell insurance within a state, except for surpllus lines or reinsurance
Unauthorized Company
A person trained in evaluating risks and determining the rates and coverage that will be used for them.

2. An agent, especially a Life Insurance agent, who might qualify as a field underwriter.
Underwriter
The process of evaluating a risk for the purpose of issuing insurance coverage
Underwriting
The portion of an advance premium payment that has not yet been used for coverage written.
Unearned Premium
A uniform law adopted by most states providing that, if the primary beneficiary and the insured die in the same accident and there is no proof that the beneficiary died first
Uniform Simultaneous Death Act
A distinguishing characteristic of Life Insurance. Unlike Health Insurance that reimburses for an actual loss, Life Insurance will pay, upon maturity, death, or any other time as stated in the contract, a fixed value as stated on the face page of the contract
Valued Contract
An annuity contract in which the amount of the periodic benefits varies, usually in relation to security market values, in contrast to a fixed or guaranteed return Annuity
Variable Annuity
A period of time between the beginning of a disability and the date benefits begin.

Elimination period
Waiting Period
A rider waiving liability for a stated cause of accident or sickness

2. A provision or rider agreeing to waive premium payment during a period of disability.

3. the giving up or surrender of a right or privilege that is know to exist
Waiver
This generally excludes coverage for persons serving in the armed forces during the time of war, whether on the battlefield or not.
War Clause
A statement made on an application for insurance that is warranted to be true in all respects.
Warranty
A life policy that runs for the insured's whole life - that is until death or the ultimate age on the mortality table being used.
Whole Life