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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Absolute assignment |
Assignment by the policy owner of all control and rights to a third party |
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Accumulation at Interest Option |
A dividend or settlement option under which the policyholder allows his/her dividends or policy proceeds to accumulate interest with the company. Although the dividends or proceeds are not generally taxable, the interest earned is. |
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Actuary |
one concerned with the application of probability and statistical theory to insurance, Ultilizing the law of large numbers |
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ADB |
Accidental death benefit. Double/ triple indemnity. Rider added to a life polity that will pay will pay double the face amount if the insured dies as a result of accident, geberall within 90 days of the accident |
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Administrator |
Person appointed by a court to settle a deceased's estate, sometimes called an executor |
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Adverse seletion |
Selection not on favor of the company. The tendency of poorer risks to want insurance more often than standard risks. Adverse selection occurs when a person who is already sick purchases health insurance |
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Adverse underwriting decisions, consumer rights |
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Agent/ producer |
The individual appointed by an insurance company to solicit and negotiate insurance contracts on it's behalf. Agents or producers represent the company, not the 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 |
The party receiving the benefits of an annuity, similar tor he insured on an insurance polity the annuitant usually also owns the annuity, although you can buy an annuity to benefit another party, who would then be the annuitant. |
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Annuity |
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Applicant |
The party making application to the insurance company for the policy. Applicants must provide the insurer with the truth to the best of their knowledge, which is known as a "representation" |
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Classification |
The grouping of persons for the purpose of determining an underwriting or rating group into which a participating risk must be placed. For example, on whole life, the "standard" rate flour the average person at age 30 might be $10 per $1,000 of face amount. If the insured is "substandard" the rate will be higher. A preferred risk receives a discount from the standard risk. |
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Collateral assignment |
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 insureds death |
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Common disaster provision |
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. If not, the contingent beneficiary receives proceeds. The proceeds is designed to protect the rights of the contingent beneficiary in the event of simultaneous (or nearly simultaneous) death of the insured and the primary beneficiary. The time limit is usually 10, 15, or 30 days, depending on state law |
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