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95 Cards in this Set
- Front
- Back
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OTHER STATES INSURANCE
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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 |
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VOLUNTARY COMPENSATION ENDORSEMENT
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iR agrees to pay workers comp benefits to eEs not covered under the law
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ISO BUSINESS AUTO COVERAGE
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widely used by bus firms to insure commercial auto exposures
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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
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Commercial Auto Insurance:
SPECIFIED CAUSES-OF-LOSS COVERAGE |
Only losses from certain specified perils are covered
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Commercial Auto Insurance:
COLLISION COVERAGE |
loss caused by covered auto's collision w/another object or its overturn is covered
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Commercial Auto Insurance:
GARAGE COVERAGE FORM |
specialized form for auto dealers
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Commercial Auto Insurance:
Garagekeepers Coverage: DIRECT COVERAGE OPTION |
indeminifies customers for their losses even though garage has no legal liability to do so
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Commercial Umbrella Policy:
ULTIMATE NET LOSS |
total sum iD is legally obligated to pay
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Commercial Umbrella Policy:
RETAINED LIMIT |
1) available limits of underlying insurance listed in declarations
2) self insurance retention |
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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
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COMMERCIAL CRIME COVERAGE FORM
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can be added to package policy to cover crime exposures of bus firms
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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
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Commercial Crime Coverage Form:
SAFE BURGLARY |
unlawful taking of property from within a locked safe or vualt
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Commercial Crime Coverage Form:
THEFT |
unlawful taking of money, or other property. includes robberty and burglary as well as shoplifting and employee theft
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Commercial Crime Coverage Form:
OTHER PROPERTY |
any tangible property other than money or securities that has intrinsic value
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Commercial Crime Coverage Form:
CYBER RISK INSURANCE |
tailored to meet specific computer loss exposures of bus firms
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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
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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
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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
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Commercial Crime Coverage Form:
STANDARD FORM NO. 24, FINANCIAL INSTITUTION BOND |
widely used and designed for banks
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Commercial Crime Coverage Form:
Financial Insitution Bonds: FIDELITY COVERAGE |
covers losses resulting directly from the dishonest or fraudulent acts of eE(s)
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SURETY BONDS
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provides monetary compensation if the bonded party fails to perform certain promised acts
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Surety Bonds:
PRINCIPAL |
party who agrees to perform certain acts or fulfill certain obligations
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Surety Bonds:
OBLIGEE |
party who receives the proceeds of bond if principal fails to perform
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Surety Bonds:
SURETY (OBLIGOR) |
party who agrees to answer for the debt, default, or obligation of another
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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
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Surety Bonds:
PERFORMANCE BOND |
type of contract bond. owner is guaranteed that work will be completed according to the contract specifications.
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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.
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Surety Bonds:
MAINTENANCE BOND |
type of contract bond. guarantees that poor workmanship by the prinicipal will be corrected, or defective materials replaced.
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Surety Bonds:
LICENSE AND PERMIT BOND |
guarantees that the person bonded will comply with all laws and regulations that govern his or her activities.
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Surety Bonds:
PUBLIC OFFICIAL BONDS |
guarantees that public officials will faithfully perform their duties for the protection of the public
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Surety Bonds:
JUDICIAL BONDS |
guarantee that the party bonded will fulfill certain obligations specifid by law
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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.
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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
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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.
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Surety Bonds:
FEDERAL SURETY BONDS |
guarantees that bonded party will comply w/federal standards.
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PREMATURE DEATH
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death of a family head w/outstanding unfulfilled financial obligations
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HUMAN LIFE VALUE APPROACH
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present value of family's share of deceased breadwinner's future earnings
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NEEDS APPROACH
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analyzes various needs that must be met if family head should die
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Needs Analysis:
ESTATE CLEARANCE FUND |
cleanup fund when family head dies. burial expenses, uninsured medical bills, installment debts, estate admin expenses
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Needs Analysis:
READJUSTMENT PERIOD |
one or two year period following breadwinner's death
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Needs Analysis:
DEPENDENCY PERIOD |
period until youngest child reaches 18
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Needs Analysis:
BLACKOUT PERIOD |
period from time that social security survivor benefits terminate to the time the benefits are resumed
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CAPITAL RETENTION APPROACH/CAPITAL NEEDS ANALYSIS
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capital rentention approach preserves capital needed to provide income to family
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YEARLY RENEWABLE TERM INSURANCE
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provides life insurance protection for only one year
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LEVEL PREMIUM METHOD
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premiums do not increase from year to year but remain level throughout the policy paying period
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LEGAL RESERVE
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redundant or excessive premiums paid under the level premium method during the early years.
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NET AMOUNT AT RISK
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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 |
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CASH VALUE
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not legal reserve
cash values are initially below the legal reserve because loading for expenses and high first year acquisition expenses |
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TERM INSURANCE
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provides temporary protection
most renewable w/o evidence of insurability most convertible to cash value policy w/o evidence of insurability |
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Term Policy Conversion:
ATTAINED AGE METHOD |
premium charged based on insured's attained age at the time of conversion
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Term Policy Conversion:
ORIGINAL AGE METHOD |
premium based on insured's original age when term was first purchased
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DECREASING TERM INSURANCE
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face amt gradually declines, premium level
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REENTRY/REVERTIBLE TERM
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renewal premiums based on select (lower) mortality rates if insured can demonstrate acceptable evidence of insurability
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WHOLE LIFE INSURANCE
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cash value policy that provides lifetime protection
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ORDINARY LIFE INSURANCE/STRAIGHT LIFE/CONTINOUS PREMIUM WHOLE LIFE
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provides lifetime protection to age 100
if insured is still alive, face amt is paid level premiums |
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Whole Life Insurance:
LIMITED PAYMENT POLICY |
insurance is permanent, lifetime protection,
premiums level, but paid only for a certain period |
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Whole Life Insurance:
SINGLE PREMIUM WHOLE LIFE |
provides lifetime protection w/a single premium
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ENDOWMENT INSURANCE
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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 |
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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
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Whole Life Insurance:
UNIVERSAL LIFE INSURANCE/FLEXIBLE PREMIUM LIFE INSURANCE |
provides protection under a contract that unbundles the protection and savings components
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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
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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
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MODIFIED LIFE POLICY
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whole life policy in which premiums are lower for the first three to five years and higher thereafter
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PREFERRED RISKS
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lower rates to those whose mortality experience is expected to be lower than avg
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SECOND TO DIE LIFE INSURANCE
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insures 2 ore more lives and pays the death benefit upon the death of the second or last insured
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JUVENILE INSURANCE
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life insurance purchased by a parent or adult on the lives of children younger than a certain age
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SAVINGS BANK LIFE INSURANCE
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type of life insurance that was sold originally by mutual savings banks in three states
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INDUSTRIAL LIFE INSURANCE/HOME SERVICE LIFE INSURANCE
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issued in small amts
premiums payable weekly or monthly |
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OWNERSHIP CLAUSE
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policyowner possesses all contractual rights in the policy while insured is living
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ENTIRE CONTRACT CLAUSE
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life insurance policy and attached app constitute the entire contract between the parties
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INCONTESTABLE CLAUSE
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insurer cannot contests the policy after in has been in force two years during the insured's lifetime
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SUICIDE CLAUSE
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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 |
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GRACE PERIOD
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policy owner has 31 days to pay an overdue premium
universal and other flex premum policies have longer grace periods |
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REINSTATEMENT PROVISION
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permits owner to reinstate a lapsed policy
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MISSTATEMENT OF AGE OR SEX CLAUSE
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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
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CHANGE OF PLAN PROVISION
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allows policyowners to exchange their present policies for different contracts
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ABSOLUTE ASSIGNMENT
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all ownership rights in policy are transferred to new owner
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COLLATERAL ASSIGNMENT
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policyowner assigns a life insurance policy as collateral for a loan
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AUTOMATIC PREMIUM LOAN PROVISION
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an verdue premium is automatically borrowed from the cash value after the grace period expires
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PAID UP ADDITIONS OPTION
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dividends used to purchase a small amt of paid up whole life insurance
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REDUCED PAID UP INSURANCE
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cash surrender value applied as a net single premium to purchase a reduced paid up policy
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EXTENDED TERM INSURANCE
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net cash surrender value used as a net single premium to extend full face amt of policy into the future as term insurance
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INTEREST OPTION
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policy proceeds are retained by insurer and interest is periodically paid to beneficiary
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FIXED PERIOD OPTION
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policy proceeds are paid to beneficiary over some fixed period of time
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FIXED AMOUNT OPTION
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fixed amt is periodically paid to beneficiary
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LIFE INCOME
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installment payments are paid only while beneficiary is alive and cease on the beneficiary's death
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LIFE INCOME WITH PERIOD CERTAIN
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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 |
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LIFE INCOME WITH REFUND
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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
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JOINT AND SURVIVOR INCOME
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income pmts paid to two persons during their lifetimes such as husband and wife
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WAIVER OF PREMIUM PROVISION
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if insured becomes totally disabled from bodily injury or disease before some stated age, all premiums coming due during disability period are waived
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GUARANTEED PURCHASE OPTION
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permits policyowner to purchase add'l amts of life insurance t s[ecified times in the future w/o evidence of insurability
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ACCIDENTAL DEATH BENEFIT RIDER (DOUBLE INDEMNITY)
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doubles the face amt of life insurance if death occurs as a result of an accident
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COST OF LIVING RIDER
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allows policyowner to purchase one-year term insurance equal to the percentage change in the CPI with no evidence of insurability
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