Texas Life Health And Accident Insurance Exam

Front 1

Reduced Paid Up

Back 1

The reduced paid-up non forfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy.

Front 2

Free Look Provision

Back 2

A period of time, usually required by law, during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason.

Front 3

4 Personal Uses of Life Insurance

Back 3

Estate creation and conservation, survivor protection, cash accumulation, and liquidity.

Front 4

Adjustable Life Insurance

Back 4

Life insurance which permits changes in the face amount, premium amount, period of protection and the duration of the premium payment period.

Front 5

Cash Value

Back 5

The amount to which a policyowner is entitled if the policy is surrendered before maturity.

Front 6

Coinsurance

Back 6

An agreement betweeen an insurer and insured in which both parties are expected to pay a certain portion of the potential loss and other expenses.

Front 7

Coinsurance Clause

Back 7

A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance.

Front 8

Whole Life Insurance

Back 8

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

Front 9

Term Insurance

Back 9

Insurance that provides protection for a specific period of time.

Front 10

Peril

Back 10

The cause of possible loss.

Front 11

Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986

Back 11

The law that provides for the continuation of group health care benefits for the insured for up to 18 months if he or she terminates employment or is no longer eligible, and for the insured's dependents for up to 36 months in cases of loss of eligibility due to death of the insured, divorce or attainment of the limiting age.

Front 12

Omnibus Budget Reconciliation Act (OBRA)

Back 12

A federal law which extends the minimum COBRA continuation of group health coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.

Front 13

Reinsurance

Back 13

A form of insurance whereby one insurance company (the reinsurer( in consideration of premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued.

Front 14

Contributory Plan

Back 14

A group insurance plan that requires the employees to pay part of the premium.

Note:75% of eligible employees must be enrolled in this plan

Front 15

Estate Conversion

Back 15

Life insurance policies sometimes help offset the tax burden of their own estate.

Front 16

Consideration Clause

Back 16

A part of the insurance contract that states that both parties must give something of value for the transfers of risk, and gives the conditions of the exchange i.e. the statements and representations made by the insurance company and the payment of premium made by the applicant.

Front 17

Actual Charge

Back 17

The amount a physician or supplier actually bills for a particular service or supply.

Front 18

Elimination Period

Back 18

A waiting period that is imposed on the insured from the onset of disability until benefit payments begin.

Social Security Disability- 5 months

Front 19

Immediate Annuity

Back 19

A type of annuity that can be purchased with a single premium and provides benefit payments immediately.

Front 20

Cash Refund Annuity

Back 20

A type of annuity promises to pay to a beneficiary, in a lump sum, the difference between the amount paid into the contract and the benefits received prior to the annuitant's death.