Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
382 Cards in this Set
- Front
- Back
401K Plan |
In the US, a type of savings plan that allows employees to make contributions on a pre-tax basis |
|
absolute assignment |
an assignment of a life insurance policy under which the policy owner transfers all of his/her policy ownership rights to the assignee |
|
accelerated death benefit |
a supplemental life insurance policy benefit which provides that a policyowner may elect to receive all or part of the policy's death benefit before the insured's death if certain conditions are met. Also known as a living benefit |
|
acceptance |
the offer's unqualified agreement to be bound to the terms of the offer |
|
accidental death and dismemberment (AD&D) benefit |
a supplemental life insurance policy benefit that provides an accidental death benefit and provides a dismemberment benefit payable if an accident causes the insured to lose any two limbs or sight in both eyes |
|
accidental death benefit |
a supplemental life insurance policy benefit that provides a death benefit in addition to the policy's basic death benefit if the insured dies as a result of an accident |
|
accumulated value |
during a deferred annuity's accumulation period, the amount paid for the deferred annuity, plus the investment earnings, minus the amount of any withdrawals and fees. Also known as accumulation value or income value |
|
accumulation at interest dividend option |
a policy dividend option under which the policy dividends are left on deposit with the insurer to accumulate at interest |
|
accumulation period |
the period between the contract owner's purchase of a deferred annuity and the beginning of the payout period |
|
actively-at-work provision |
a group insurance policy provision which states that, in order to be eligible for coverage, an employee must be actively at work - rather than ill on leave - on the day the insurance coverage is to take effect |
|
activities of daily living (ADLs) |
the activities of eating, bathing, dressing, continence, toiling, or transferring into or out of a bed, chair, or wheelchair |
|
actuarial assumptions |
the assumed values used in the financial design of a product |
|
actuary |
an expert in financial risk management and the mathematics and modeling of insurance, annuities, and financial instruments |
|
additional term insurance dividend option |
a policy dividend option under which the insurer uses each policy dividend to purchase one-year term insurance of the insured's life |
|
administrative services only (ASO) contract |
a contract under which an insurer or other organization agrees to provide some or all administrative services for a self-insured group health insurance plan |
|
aggregate stop-loss insurance |
stop-loss insurance under which the stop-loss insurer begins to reimburse the employer for claims when the employer's total claims exceed a stated dollar amount within a stated period of time |
|
aleatory contract |
a contract under which one party provides something of value to another party in exchange for a conditional promise |
|
allowable expenses |
those reasonable and customary expenses than an insured incurred and that are covered under the insured's group medical expense plans |
|
annual statement |
an accounting report which every US insurer prepares each calendar year and files with the insurance department in each state in which it operates |
|
annuitant |
the person whose lifetime is used to determine the amount of benefits payable under an annuity contract |
|
annuity |
a series of periodic payments |
|
annuity contract |
a contract under which an insurer promises to make a series of periodic payments to a named individual in exchange for a premium or series of premiums |
|
annuity period |
the time span between each of the payments in the series of periodic annuity payments |
|
anti-selection |
the tendency of individuals who believe they have a greater-than-average likelihood of loss to seek insurance protection to a greater extent than do other individuals. Also known as adverse selection or selection against the insurer |
|
applicant |
the person or business that applies for an insurance policy |
|
asset |
an item of value that a company owns. Examples of assets include cash, buildings, and investments |
|
assignee |
the party to whom life insurance property rights are transferred |
|
assignment |
an agreement under which an insurance policy owner transfers some or all of his ownership rights in the policy to another party |
|
assignment provision |
a life insurance policy provision which describes the roles of the insurer and the policy owner when the policy is assigned |
|
assignor |
the policy owner who makes an assignment of a life insurance policy |
|
attachment point |
For stop-loss insurance, the total dollar amount of claimsthat the employer must pay within a stated period of time before the stop-lossinsurer begins to reimburse the employer. Sometimes referred to as the aggregate deductible. |
|
attained age |
The age an insured has reached (attained) on a specified date |
|
attained age conversion |
A conversion of a term life insurance policy to a cashvalue life insurance policy in which the premium rate for the cash value policyis based on the insured’s age at the time the policy is converted |
|
automatic dividend option |
A specified policy dividend option that the insurerwill apply if a policyowner does not choose an option |
|
automatic nonforfeiture benefit |
A specific nonforfeiture benefit that becomeseffective automatically when a renewal premium for a cash value life insurancepolicy is not paid by the end of the grace period and the policyowner has notelected another nonforfeiture option |
|
automatic premium loan (APL) option |
A cash value life insurance policy nonforfeiture option under which the insurer will automatically pay an overdue premium for the policyowner by making a loan against the policy’s cash value aslong as the cash value equals or exceeds the amount of the premium due |
|
back-end sales charge |
An amount charged to an annuity contract owner whenshe withdraws money from an contract. Also known as a surrender charge |
|
bargaining contract |
A contract in which both parties, as equals, set the termsand conditions of the contract |
|
basic medical expense coverage |
Medical expense insurance coverage provid-ing separate benefits for each type of covered medical care cost. Basic coverage typically provides benefits for hospital, surgical, and physicians’ expenses |
|
beneficiary |
The person or party the policyowner names to receive the life insurance policy benefit |
|
benefit formula |
A formula that describes the calculation of the a plan’s financialobligation to participants in a retirement plan |
|
benefit period |
The time during which the insurer agrees to pay income benefitsto the insured under a disability income or long-term care insurance policy |
|
benefit schedule |
A schedule included in a group life insurance policy that definesthe amount of life insurance the policy provides for each insured |
|
benefit trigger |
A long-term care insurance policy requirement specifyingthe conditions that establish an insured’s eligibility to receive long-term carebenefits |
|
bilateral contract |
A contract in which both parties make legally enforceablepromises when they enter into the contract |
|
blended rating |
A method of setting group insurance premium rates under whichthe insurer uses a combination of manual rating and experience rating |
|
block of policies |
A group of policies issued to insureds who are all the same age,the same sex, and in the same risk classification |
|
board of directors |
A group of individuals who are responsible for overseeing themanagement of a corporation |
|
business continuation insurance plan |
An insurance plan designed to enable abusiness owner (or owners) to provide for the business’ continued operation ifthe owner or another key person dies |
|
buy-sell agreement |
An agreement in which (1) one party agrees to purchase thefinancial interest that a second party has in a business following the secondparty’s death and (2) the second party agrees to direct his estate to sell his inter-est in the business to the purchasing party |
|
calendar-year deductible |
A deductible that applies to the total of all allowableexpenses an insured incurs during a given calendar year |
|
capital |
An amount of money that a company’s owners invested in the company,usually through the purchase of company stock |
|
cash dividend option |
A policy dividend option under which the insurance company sends the policyowner a check in the amount of the policy dividend thatwas declared |
|
cash payment nonforfeiture option |
A cash value life insurance policy nonforfeiture option under which the policyowner discontinues premium payments andreceives the policy’s cash surrender value in a lump-sum payment |
|
cash surrender value |
The amount of the cash value that a policyowner is entitledto receive upon surrender of the policy. Also known as the surrender value orsurrender benefit |
|
cash value life insurance |
Life insurance that provides insurance coveragethroughout the insured’s lifetime and provides a savings element, known as thecash value. Sometimes referred to as permanent life insurance |
|
certificate holder |
An individual who is insured under a group insurance plan and who has received a certificate of insurance |
|
certificate of authority |
A document that grants an insurer the right to conduct aninsurance business and sell insurance products in the jurisdiction that grants thecertificate. Also known as a license |
|
certificate of insurance |
A document that describes the coverage that the groupinsurance contract provides and a group insured’s rights under the contract |
|
children's insurance rider |
A supplemental life insurance policy benefit that provides term life insurance coverage on the insured’s children |
|
claim |
A request for payment under the terms of an insurance policy |
|
claim costs |
The costs the insurer predicts that it will incur to provide the policy benefits promised under a health insurance policy |
|
class designation |
A beneficiary designation that identifies a certain group of persons, rather than naming each person |
|
closed contract |
A contract for which only those terms and conditions that areprinted in—or attached to—the contract are considered to be part of the con-tract |
|
cognitive impairment |
A reduction in a person’s ability to think, reason, or remember |
|
coinsurance |
An expense participation requirement imposed by many medicalexpense plans; the requirement, generally, is a specified percentage of all allowable expenses that remain after the insured has paid the deductible and thatmust be paid by the insured |
|
collateral assignment |
A temporary assignment of the monetary value of a lifeinsurance policy as collateral—or security—for a loan |
|
commutative contract |
A contract under which the parties specify in advance thevalues that they will exchange. Moreover, the parties generally exchange itemsor services that they think are of relatively equal value |
|
compounding |
Calculating an interest amount on both the principal and theaccrued interest |
|
compound interest |
Interest on both the principal and the accrued interest |
|
comprehensive major medical policy |
A medical expense insurance policy thatcombines the coverages provided by both a supplemental major medical policyand an underlying basic medical expense policy |
|
conditional promise |
A promise to perform a stated act if a specified, uncertainevent occurs. If the event does not occur, the promise will not be performed |
|
consideration |
A requirement for the formation of a valid informal contract thatis met when each party gives or promises something that is of value to the otherparty |
|
consolidation |
As it relates to the financial services industry, the combination offinancial services institutions within or across sectors |
|
contingent beneficiary |
The party named to receive the policy proceeds if theprimary beneficiary should die before the insured. Sometimes referred to as asecondary beneficiary or successor beneficiary |
|
contingent payee |
(1) The person or party who will receive any life insurance pro-ceeds still payable at the time of the payee’s death. Also known as the successorpayee. (2) The person or other entity who will receive any remaining annuitypayments upon the death of the payee |
|
continuous-premium whole life policy |
A whole life insurance policy underwhich premiums are payable until the death of the insured. Sometimes referredto as a straight life insurance policy or an ordinary life insurance policy |
|
contract |
A legally enforceable agreement between two or more parties |
|
contract of adhesion |
A contract that one party prepares and that the other partymust accept or reject as a whole, generally without any bargaining between theparties to the agreement |
|
contract of indemnity |
An insurance policy under which the amount of the policybenefit payable for a covered loss is based on the actual amount of financial lossthat results from the covered event, as determined at the time of the event |
|
contract owner |
The person or other entity who owns and exercises all the rightsand privileges of an annuity contract |
|
contractual capacity |
The legal capacity to make a contract |
|
contributory plan |
A group insurance plan under which insured group membersmust pay part or all of the premium for their coverage |
|
convergence |
The movement toward a single financial institution being able toserve a customer’s banking, insurance, and securities needs |
|
conversion privilege |
Principles of Insurance (1) A term life insurance policy provision that allows thepolicyowner to change (convert) the policy to a cash value policy without providing evidence that the insured is an insurable risk. (2) A group life insurance policy provision that allows a group insured whose coverage terminatesfor certain reasons to convert her group life insurance coverage to an individuallife insurance policy, usually without presenting evidence of her insurability |
|
conversion provision |
A group medical expense insurance policy provision thatgives an insured group member who is leaving the group a limited right topurchase an individual medical expense policy without presenting evidence ofinsurability |
|
convertible term insurance policy |
A term life insurance policy that gives thepolicyowner the right to convert the term policy to a cash value life insurancepolicy |
|
coordination of benefits (COB) provision |
A group medical expense insurancepolicy that is designed to prevent a group insured who is covered under morethan one group medical expense policy from receiving benefit amounts thatare greater than the amount of medical expenses the insured actually incurred |
|
copayment |
A specified, fixed amount paid by a managed care plan member to anetwork provider when she receives services from the provider |
|
corporation |
A legal entity that is created by the authority of a governmental unit,through a process known as incorporation, and is separate and distinct from thepeople who own it |
|
cost of benefits |
The value of all benefits under a product. Sometimes referred toas the cost of insurance |
|
cost-of-living adjustment (COLA) benefit |
A disability income insurance benefitthat provides for periodic increases in the disability income benefit amount thatthe insurer will pay to a disabled insured; these increases usually correspond toincreases in the cost of living |
|
credit life insurance |
A type of term life insurance designed to pay the balancedue on a loan if the borrower dies before the loan is repaid |
|
daily benefit amount |
Under a long-term care insurance policy, the maximumamount the insurer will pay for each day of an insured’s long-term care at a carefacility or in the patient’s home |
|
death benefit |
An amount of money payable to a beneficiary designated by adeferred annuity contract owner if the contract owner dies before the annuitypayments begin. Also known as a survivor benefit |
|
declined risk |
A proposed insured who is considered to present a risk that is toogreat for the insurer to cover |
|
decreasing term life insurance |
Term life insurance that provides a policy benefitthat decreases in amount over the term of coverage |
|
deductible |
A flat dollar amount of eligible medical expenses that the insured mustpay before the insurer begins making any benefit payments under a medicalexpense insurance policy |
|
deferred annuity |
An annuity under which periodic income payments are scheduled to begin more than one annuity period after the date on which the annuitywas purchased |
|
defined benefit formula |
A retirement plan benefit formula that specifies theamount of retirement benefit a plan sponsor promises to provide to each planparticipant |
|
defined benefit plan |
A retirement plan structured according to a defined benefitformula |
|
defined contribution formula |
A retirement plan benefit formula that specifiesthe level of contributions that the plan sponsor promises to make to the plan |
|
defined contribution plan |
A retirement plan structured according to a definedcontribution formula |
|
dental expense coverage |
Medical expense insurance coverage that provides benefits for routine dental examinations, preventive dental work, and dental procedures needed to treat tooth decay and diseases of the teeth and jaw |
|
direct writer |
In a reinsurance transaction, the insurance company that purchasesreinsurance to transfer all or part of the risks on insurance policies the companyissued |
|
disability buyout coverage |
Disability income insurance coverage that providesbenefits designed to fund the buyout of a partner’s or owner’s interest in a business should he become disabled |
|
disability income benefit |
A supplemental life insurance policy benefit that provides a monthly income benefit to the policyowner-insured if she becomestotally disabled while the policy is in force |
|
disability income coverage |
Health insurance coverage that provides incomereplacement benefits to an insured who is unable to work because of sicknessor injury |
|
dividend options |
Specified methods by which the owner of a participating lifeinsurance policy or participating annuity may receive policy dividends |
|
divisible surplus |
A portion of an insurance company’s surplus set aside specifically for distribution to owners of participating policies |
|
domicile |
The jurisdiction in which a company incorporates |
|
dread disease (DD) benefit |
An accelerated death benefit under which the insureragrees to pay a portion of the policy’s face amount to the policyowner if theinsured suffers from one of a number of specified diseases. Also known as acritical illness benefit |
|
eligibility period |
A specified period of time, usually 31 days, during which a newgroup member may first enroll for group insurance coverage. Also known as anenrollment period |
|
elimination period |
The specific amount of time that the insured must be disabledbefore becoming eligible to receive disability income benefits or the specificamount of time the insured must be receiving long-term care before becomingeligible to receive long-term care benefits |
|
endowment insurance |
Insurance that provides a policy benefit payable eitherwhen the insured dies or on a stated date if the insured is still alive on that date |
|
entire contract provision |
An insurance and annuity policy provision that definesthe documents that constitute the contract between the insurance company andthe policyowner |
|
equity-indexed annuity (EIA) |
A type of annuity that offers certain principal andearnings guarantees, but also offers the possibility of additional earnings bylinking the contract to a published index |
|
estate |
The accumulated assets that an individual owns when he dies |
|
estate plan |
A plan that considers the amount of assets and debts that a person islikely to have when she dies and how best to preserve those assets so that theycan be distributed as she desires |
|
evidence of insurability |
Proof that a given person is an insurable risk |
|
exclusion |
An insurance policy provision that describes circumstances underwhich the insurer will not pay the policy proceeds following an otherwise cov-ered loss |
|
experience rating |
A method of setting group insurance premium rates underwhich the insurer considers the particular group’s prior claims and expenseexperience |
|
extended term insurance nonforfeiture option |
A cash value life insurance policy nonforfeiture option under which the policyowner discontinues paying pre-miums and uses the policy’s net cash surrender value to purchase term insur-ance for the full coverage amount provided under the original policy, for as longa term as the net cash surrender value can provide |
|
face amount |
The amount of the policy benefit that is payable if the insured dieswhile the policy is in force |
|
family income coverage |
A plan of decreasing term life insurance that providesto the beneficiary a stated monthly income benefit amount if the insured diesduring the term of coverage |
|
family income policy |
A cash value life insurance policy with a family incomecoverage rider |
|
family policy |
A whole life insurance policy that includes term life insurance coverage on the primary insured’s spouse and children |
|
federal system |
A system of government in which a federal government and anumber of lower level governments share governmental powers |
|
financial design |
A set of values for the numerous elements of a life insuranceproduct |
|
financial institution |
A business that owns primarily financial assets, such asstocks and bonds, rather than fixed assets, such as equipment and raw materials |
|
financial intermediary |
An organization that collects funds from one group ofpeople, businesses, and governments, known as suppliers, and channels themto another group, known as users |
|
financial model |
A computer-based mathematical model that approximates theoperation of real-world financial processes |
|
financial services industry |
The industry that is made up of various kinds offinancial institutions that help people, businesses, and governments save, borrow, invest, and otherwise manage money |
|
first-dollar coverage |
Medical expense coverage under which the insurer beginsto reimburse the insured for eligible medical expenses without first requiring anout-of-pocket contribution from the insured |
|
fixed amount annuity |
An annuity that guarantees the payment of periodic incomepayments of a specified minimum dollar amount for as long a period as theannuity’s accumulated value will provide, regardless of whether the annuitantlives or dies |
|
fixed amount option |
(1) A life insurance policy settlement option under whichthe insurance company pays equal installments of a stated amount until the policy proceeds, plus the interest earned, are exhausted. (2) An annuity contractpayout option under which the insurer provides periodic income payments of atleast a specified minimum amount for as long a period as the annuity’s accumulated value will provide, regardless of whether the annuitant lives or dies |
|
fixed annuity |
An annuity contract under which the insurer guarantees the minimum interest rate that will be applied to the annuity’s accumulated value during the accumulation period and the minimum amount of the periodic incomepayments that will be made during the payout period |
|
fixed period option |
(1) A life insurance policy settlement option under which theinsurance company agrees to pay policy proceeds in equal installments to thepayee for a specified period of time. (2) An annuity contract payout optionunder which the insurer makes annuity payments for a specified period of time |
|
fixed premium universal life insurance policy |
A universal life insurance policythat requires a series of scheduled premium payments of a specified amount fora specified length of time (typically 8 to 10 years) or until the insured’s death,whichever comes first |
|
fixed subaccount |
A subaccount that guarantees payment of a fixed rate of interestfor a specified period of time |
|
flexible-premium annuity |
An annuity that is purchased by the payment of periodic premiums that can vary between a set minimum amount and a set maximum amount |
|
flexible premium universal life insurance policy |
A universal life insurance policy that allows the policyowner to alter the amount and frequency of premiumpayments, within specified limits |
|
formal contract |
A contract that is enforceable because the parties met certainformalities concerning the form of the agreement |
|
fraternal benefit society |
A nonprofit organization that is operated solely for thebenefit of its members and that provides social, as well as insurance, benefits toits members |
|
fraudulent misrepresentation |
A misrepresentation that was made with the intentto induce the other party to enter into a contract and that did induce the innocentparty to enter into the contract |
|
free-look provision |
An insurance and annuity policy provision that gives thepolicyowner a stated period of time—usually at least 10 days—after the policyis delivered in which to examine the policy |
|
front-end sales charge |
An amount charged to an annuity contract owner at thetime she pays for the annuity. The front-end charge compensates the insurer forsales commissions and other expenses associated with acquiring the business |
|
fully insured plan |
A group health insurance plan under which the group policyholder makes periodic premium payments to an insurance company, and theinsurance company bears the responsibility for all claim payments |
|
fully self-insured plan |
A group insurance plan under which the group policyholder—usually an employer—takes complete responsibility for all claim payments and related expenses |
|
funding mechanism |
The way in which a group insurance plan’s claim costs and administrative expenses are paid |
|
funding vehicle |
An arrangement for investing a retirement plan’s assets asthose assets are accumulated |
|
future purchase option benefit |
A disability income benefit that grants theinsured the right to increase the benefit amount in accordance with increases inthe insured’s earnings |
|
general account |
An undivided investment account in which an insurer maintainsfunds that support its contractual obligations to pay benefits under its guaran-teed insurance products, such as whole life insurance and other nonvariableproducts |
|
grace period |
A specified length of time within which a renewal premium that isdue may be paid |
|
grace period provision |
An insurance policy provision that specifies a length oftime following each renewal premium due date within which the premium maybe paid without loss of coverage |
|
graded-premium policy |
A whole life insurance policy that calls for three ormore levels of annual premium payment amounts, increasing at specified pointsin time—such as every three years—until reaching the amount to be paid as alevel premium for the rest of the life of the policy |
|
group creditor life insurance |
Group life insurance issued to a creditor, such as abank, to insure the lives of the creditor’s current and future debtors |
|
group insurance |
A method of providing life or health insurance coverage for agroup of people under one insurance contract |
|
group insurance policy |
A policy that is issued to insure the lives or health of aspecific group of people, such as a group of employees |
|
group insured |
An individual covered by a group insurance policy |
|
guaranteed insurability (GI) benefit |
A supplemental life insurance policy benefit that gives the policyowner the right to purchase additional insurance ofthe same type as the basic life insurance policy—for an additional premiumamount—on specified option dates (typically every three years) during the lifeof the policy without supplying evidence of the insured’s insurability |
|
guaranteed minimum accumulation benefit (GMAB) |
A variable annuity contract feature which guarantees that the accumulated value will be at least a min-imum amount if the contract remains in force for a specified period of time—typically 7 to 10 years |
|
guaranteed minimum death benefit (GMDB) |
A variable annuity contract feature which guarantees that, if the annuitant dies before periodic income payments begin, the beneficiary will receive at least a stated amount, regardless ofthe contract’s accumulated value at that time |
|
guaranteed minimum income benefit (GMIB) |
A variable annuity contract feature that guarantees a minimum periodic income payment regardless of theannuity’s investment performance if the contract remains in force for a specified period of time—typically 7 to 10 years |
|
guaranteed minimum withdrawal benefit (GMWB) |
A variable annuity contract feature which guarantees that up to a certain percentage of the amountpaid into the contract will be available for withdrawals annually during theaccumulation period, even if subaccount investments perform poorly |
|
health maintenance organization (HMO) |
A health care financing and delivery system that provides comprehensive health care services to plan members,often referred to as subscribers, in a particular geographic area |
|
immediate annuity |
An annuity that provides periodic income payments that generally are scheduled to begin one annuity period after the date the contract isissued |
|
incontestability provision |
An insurance and annuity policy provision thatdescribes the time limit within which the insurer has the right to avoid the contract on the ground of material misrepresentation in the application |
|
increasing term life insurance |
Term life insurance that provides a death benefitthat starts at one amount and increases by some specified amount or percentageat stated intervals over the policy term |
|
indemnity benefits |
Contractual benefits that are provided under insurance policies based on the actual amount of the insured’s financial loss |
|
indemnity method |
A method of determining the amount of benefit payable undera long-term care insurance policy under which the insurer pays the insured thedaily benefit amount regardless of the actual expenses for long-term care of theinsured |
|
individual deductible |
For stop-loss insurance, the dollar amount of claims thatan employer must pay for any individual in a stated period of time before thestop-loss insurer reimburses the employer for any excess amount |
|
individual retirement annuity |
An individual deferred annuity that qualifies forfavorable federal income tax treatment because it meets the requirements specified in the federal tax laws for individual retirement arrangements |
|
individual retirement arrangement (IRA) |
A tax-deferred savings arrangementthat an individual establishes and that meets certain requirements specified inthe U.S. federal tax laws |
|
individual stop-loss coverage |
Stop-loss insurance under which insurer reim-burses the employer for all claims paid for any individual that exceed astated amount in a stated period of time. |
|
inflation protection provision |
A long-term care insurance policy provision thateither automatically increases the benefit amount each year by a specified percentage or allows the insured to opt for a higher daily benefit amount at specified intervals during the lifetime of the policy without having to show evidenceof insurability |
|
informal contract |
A contract that is enforceable because the parties to thecontract met requirements concerning the substance of the agreement ratherthan requirements concerning the form of the agreement |
|
insurable interest |
The interest an insurance policyowner has in the risk that isinsured. A policyowner has an insurable interest if he is likely to suffer a genu-ine loss or detriment should the event insured against occur |
|
insurance commissioner |
The individual who is responsible for directing theoperations of the state insurance department |
|
insurer-administered group plan |
A group insurance plan for which the insureris responsible for handling the administrative and recordkeeping aspects of theplan |
|
intangible property |
Property that represents ownership of a legal right, such asa contractual right |
|
interest option |
A life insurance policy settlement option under which the insurance company invests the policy proceeds and periodically pays interest onthose proceeds to the payee |
|
investment earnings |
The money an insurer earns from investing the funds itreceives from customers |
|
investment management fee |
A fee charged the owner of a variable annuity whichcovers the costs of managing and operating the investment funds underlying thevariable subaccounts |
|
joint and survivor life annuity |
A life annuity that provides periodic income pay-ments to two or more annuitants, and those payments continue until both or allof the annuitants die |
|
joint mortgage life insurance |
A variation of mortgage life insurance that pro-vides the same benefit as a mortgage life insurance policy except the joint policyinsures the lives of two people |
|
joint whole life insurance |
A plan of whole life insurance that has the same features and benefits as individual whole life insurance, except that it insures twopeople under the same policy |
|
juvenile insurance policy |
An insurance policy that is issued on the life of a childbut owned and paid for by an adult, usually the child’s parent or legal guardian |
|
key person |
Any person or employee whose continued participation in a businessis vital to the success of the business and whose death would cause the businessto incur a significant financial loss |
|
key person disability coverage |
Disability income coveragee that provides ben-efit payments to a business if an insured key person becomes disabled |
|
key person life insurance |
Individual life insurance that a business purchases onthe life of a key person |
|
lapse rate |
The percentage of a specified group of policies in force at the beginning of a specified period, such as a year, that are terminated by the end of thatperiod for reasons other than the death of the insured |
|
last survivor life insurance |
A variation of joint whole life insurance under whichthe policy benefit is paid only after both people insured by the policy have died |
|
law of large numbers |
A mathematical theory which states that, typically, themore times we observe a particular event, the more likely that our observedresults will approximate the true probability that the event will occur |
|
legal actions provision |
A health insurance policy provision that limits the timeduring which a claimant who disagrees with the insurer’s claim decision has theright to sue the insurer to collect the amount the claimant believes she is owedunder the policy |
|
legal reserve system |
The system insurers use to set financial values for life insurance products |
|
level premium system |
A life insurance premium system that allows a policyowner to pay the same premium amount each year a policy is in force |
|
level premium term life insurance |
Term life insurance that provides a policybenefit that remains the same over the term of the policy |
|
liability |
A company’s debt or future obligation |
|
life annuity |
An annuity that provides periodic income payments for at least thelifetime of a named individual |
|
life annuity with period certain |
A life annuity which guarantees that the insurerwill make periodic income payments throughout the annuitant’s life and guarantees that the payments will be made for at least a certain period, even if theannuitant dies before the end of that period |
|
life income option |
A life insurance policy settlement option under which theinsurance company agrees to pay the policy proceeds in periodic installmentsover the payee’s lifetime |
|
life insurance |
Insurance that pays a benefit upon the death of a named person |
|
life with refund annuity |
A life annuity that provides periodic income paymentsthroughout the lifetime of the annuitant and guarantees that at least the purchaseprice of the annuity will be paid out |
|
limited-payment whole life policy |
A whole life insurance policy for which pre-miums are payable only for a stated period of time or until the insured’s death,whichever occurs first |
|
long-term care (LTC) coverage |
Health insurance that provides benefits for med-ical and other services to insureds who need care for an extended period in theirown homes or in a qualified facility |
|
long-term care (LTC) insurance benefit |
An accelerated death benefit underwhich the insurer agrees to pay a monthly benefit to a policyowner if the insuredrequires constant care for a medical condition |
|
long-term group disability income coverage |
Group disability income coveragethat provides a maximum benefit period of more than one year |
|
long-term individual disability income coverage |
Individual disability incomecoverage that provides a maximum benefit period of five years or more |
|
loss ratio |
The ratio of benefits an insurer paid out for a block of policies to thepremiums the insurer received for those policies |
|
lump-sum distribution |
The distribution of the accumulated value of an annuityin a single payment |
|
major medical expense coverage |
Medical expense insurance coverage thatprovides substantial benefits for (1) basic hospital, surgical, and physicians’expenses, (2) additional medical services related to illness or injuries, and(3) preventive care |
|
managed care |
A method of integrating the financing and delivery of health careservices within a system that manages the access to health care services and thecost of those services |
|
managed care plan |
An arrangement that integrates the financing and management of health care with the delivery of health care services to a group of individuals who have enrolled in the plan |
|
manual rating |
A method of establishing group insurance premium rates that arebased on the experience of a broad class of groups rather than on a particulargroup’s claims and expense experience |
|
market conduct law |
A law that regulates how insurance companies conductbusiness |
|
market value adjusted (MVA) annuity |
An annuity that offers multiple guar-antee periods and multiple fixed interest rates |
|
master group insurance contract |
An insurance contract that insures a numberof people |
|
material misrepresentation |
A misrepresentation that is relevant to an insurancecompany’s evaluation of the proposed insured |
|
maturity date |
(1) The date on which the insurer will pay an endowment policy’sface amount to the policyowner if the insured is still living. (2) The date onwhich the insurer begins to make the periodic income payments under an annuity contract |
|
maximum out-of-pocket provision |
A major medical expense insurance policyprovision which states that the policy will cover 100 percent of allowable medical expenses after the insured has paid a specified amount out-of-pocket tosatisfy deductible and coinsurance requirements |
|
McCarran-Ferguson Act |
A U.S. federal law under which the U.S. Congress leftinsurance regulation to the state governments, as long as Congress determinesthat regulation to be adequate |
|
Medicaid |
In the United States, a joint federal and state program that providesbasic medical expense and nursing home coverage to low-income individualsand to certain aged and disabled individuals |
|
medical expense coverage |
A type of health nsurance coverage that provides benefits to pay for the treatment of an insured’s illnesses and injuries |
|
Medicare |
In the United States, a federal government program that provides medical expense benefits to persons age 65 and older and persons with certain disabilities |
|
misstatement of age or sex provision |
A life insurance or annuity policy provi-sion that describes the action the insurer will take to adjust the amount of thepolicy benefit in the event that the age or sex of the insured is incorrectly stated |
|
modified coverage policy |
A whole life insurance policy under which the amountof insurance provided decreases by specific percentages or amounts either whenthe insured reaches certain stated ages or at the end of stated time periods |
|
modified-premium whole life policy |
A whole life insurance policy for which theannual premium amount changes after a specified initial period (typically 5 or10 years) |
|
moral hazard |
A characteristic that exists when the reputation, financial position, or criminal record of an applicant or a proposed insured indicates that theperson may act dishonestly in the insurance transaction |
|
morbidity rate |
The rate at which sickness and accidents occur among a givengroup of people |
|
morbidity tables |
Charts that show the incidence of sickness and accidents, byage, occurring among a given group of people |
|
mortality and expense risk (M&E) charge |
A fee charged the owner of a variable annuity which covers various risks and expenses assumed by the insurer,including the risk involved in providing the annuity death benefit and certainother guarantees |
|
mortality experience table |
A type of mortality table that is compiled from acompany’s own records, reflecting its insureds’ actual mortality |
|
mortality rate |
The rate at which death occurs among a specified group of peopleduring a specified period, typically one year |
|
mortality tables |
Charts that indicate the number of people in a large group whoare likely to die at certain ages |
|
mortgage life insurance |
A plan of decreasing term insurance designed to provide a benefit amount that corresponds to the decreasing amount owed on amortgage loan |
|
mutual assent |
A meeting of the minds about the terms of an agreement |
|
mutual insurance company |
An insurance company that is owned by its policyowners |
|
National Association of Insurance Commissioners (NAIC) |
In the United States,a nongovernmental association of the insurance commissioners of all the stateswhose primary function is to promote uniformity of state insurance regulationby developing model laws and regulations as guidelines for the states |
|
net cash surrender value |
The amount the owner of a cash value life insurancepolicy actually receives—after the insurer makes any additions or subtractionsto the cash surrender value—upon surrendering the policy |
|
network |
A group of physicians, hospitals, and ancillary services providers that aspecific managed care plan has contracted with to deliver health care servicesto plan members |
|
noncontributory plan |
A group insurance plan under which insured group members are not required to pay any part of the group insurance premium |
|
non duplication of benefits provision |
A coordination of benefits provision that, ifincluded in a secondary provider’s plan, limits the amount payable by the secondary plan to the difference, if any, between the amount paid by the primaryplan and the amount that would have been payable by the secondary plan hadthat plan been the primary plan |
|
nonforfeiture provision |
A cash value life insurance policy provision that setsforth the options available to the owner of a cash value policy if the policy lapsesor if the policyowner decides to surrender—or terminate—the policy |
|
nonparticipating policy |
A type of insurance policy in which the policyownerdoes not share in the insurer’s surplus |
|
offer |
A proposal to enter into a binding contract with another party |
|
open contract |
A contract that identifies the documents that constitute the contract between the parties, but all the enumerated documents are not necessarilyattached to the contract |
|
open enrollment period |
A period of time—typically a specified 30 or 31 daysper year—during which eligible people who did not join a group insuranceplan at the first opportunity subsequently may join the plan without providingevidence of insurability |
|
operating expenses |
The expenses that arise in the normal course of an insurer’soperations |
|
original age conversion |
A conversion of a term life insurance policy to a cashvalue life insurance policy in which the premium rate for the cash value policyis based on the insured’s age when the original term policy was issued |
|
overinsurance provision |
An individual health insurance provision which statesthat the benefits payable under the policy will be reduced if the insured is over-insured |
|
overinsured person |
A person who is entitled to receive either (1) more in medical expense benefits than the actual costs incurred for treatment or (2) a greaterincome amount during disability than the amount that would have been earnedfrom working |
|
owners' equity |
The owners’ financial interest in a company, which is the difference between the amount of the company’s assets and the amount of its liabilities |
|
ownership of property |
The sum of all the legal rights that exist in a piece ofproperty |
|
paid-up additional insurance dividend option |
A policy dividend option underwhich the insurer uses any declared policy dividend to purchase paid-up additional insurance on the insured’s life |
|
paid-up additions option benefit |
A supplemental life insurance policy bene-fit that allows the owner of a whole life insurance policy to purchase single premium paid-up additions to the policy on stated dates in the future withoutproviding evidence of the insured’s insurability |
|
paid-up policy |
A life insurance policy that requires no further premium payments but continues to provide coverage |
|
partial disability |
A disability that prevents the insured either from performingsome of the duties of his usual occupation or from engaging in that occupationon a full-time basis |
|
participating policy |
A type of insurance policy under which the policyownershares in the insurance company’s divisible surplus |
|
payout annuity |
An annuity in the payout period |
|
payout options |
The choices an annuity contract owner has as to how the insurerwill distribute the funds in an annuity during the payout period |
|
payout options provision |
An annuity contract provision that lists and describeseach of the payout options from which the contract owner may select |
|
payout period |
The period during which the insurer makes periodic income payments under an annuity contract |
|
pension |
A lifetime monthly income benefit that begins at retirement |
|
period certain |
The stated period over which the insurer will make periodicincome payments for a period certain annuity |
|
period certain annuity |
An annuity that is payable for a stated period of time,regardless of whether the annuitant lives or dies |
|
periodic fee |
An amount charged the owner of an annuity contract at predetermined intervals—for example, every year or every month. A periodic fee typically compensates the insurer for its administrative expenses |
|
personal property |
All property other than real property |
|
personal risk |
The risk of economic loss associated with death, poor health, injury, and outliving one’s economic resources |
|
physical examination provision |
A disability insurance policy provision whichstates that the insurer has the right to have an insured who has submitted a claimexamined by a physician of the insurer’s choice, at the insurer’s expense |
|
plan administrator |
The party that is responsible for the administrative aspects ofa retirement plan’s operation |
|
plan document |
A detailed legal agreement that establishes the existence of anemployer-sponsored retirement plan and specifies the rights and obligations ofvarious parties to the plan |
|
point-of-service (POS) plan |
A managed care plan that combines features ofHMOs and PPOs; plan members who need medical care choose, at the point ofservice, whether to seek care in-network or out-of-network |
|
policy benefit |
A specific amount of money an insurer agrees to pay under aninsurance policy when a specific loss occurs |
|
policy dividend |
A life insurance policyowner’s or annuity contract owner’s shareof the divisible surplus |
|
policy loan |
A loan a policyowner receives from an insurer using the cash value ofa life insurance policy as security |
|
policy loan provision |
A cash value life insurance provision that specifies theterms on which the policyowner can obtain a loan against the policy’s cashvalue |
|
policy loan repayment dividend option |
A policy dividend option under whichthe insurer applies policy dividends toward the repayment of an outstandingpolicy loan |
|
policy reserves |
Liabilities that represent the amount an insurer estimates it needsto pay future benefits |
|
policy rider |
An amendment to an insurance policy that becomes part of the insurance contract and either expands or limits the benefits payable under the contract |
|
policy withdrawal provision |
A universal life insurance policy provision thatpermits the policyowner to reduce the amount of the policy’s cash value bywithdrawing up to the amount of the cash value in cash |
|
portability provision |
A provision in a group insurance policy that allows a groupinsured whose coverage terminates for certain reasons to continue her coverage under the group plan, typically without presenting evidence of insurability |
|
portable coverage |
Group insurance coverage that can be continued if an insuredemployee leaves the group |
|
preference beneficiary clause |
A policy provision included in some life insurancepolicies which states that if the policyowner does not name a beneficiary, thenthe insurer will pay the policy proceeds in a stated order of preference |
|
preferred premium rate |
A lower-than-standard premium rate charged insuredswho are classified as preferred risks |
|
preferred provider organization (PPO) |
A health care benefit arrangement thatprovides incentives for plan members to use network providers, but also provides at least some coverage for services rendered by non-network providers |
|
preferred risk |
A proposed insured who presents a significantly lower-than-average likelihood of loss |
|
premium reduction dividend option |
A policy dividend option under which theinsurer applies policy dividends toward the payment of renewal premiums |
|
prescription drug coverage |
Medical expense insurance coverage that providesbenefits for the purchase of drugs and medicines that are prescribed by a physician and are not available over-the-counter |
|
presumptive disability |
A stated condition that, if present, automatically causesthe insured to be considered totally disabled |
|
primary care provider (PCP) |
In a managed care plan, a network member whocoordinates plan members’ medical care and treatment |
|
principal |
The sum of money originally invested, loaned, or borrowed |
|
profit sharing plan |
A retirement savings plan that is funded primarily by cashcontributions payable from the employer’s profits |
|
property/casualty (P&C) insurance company |
An insurer that issues and sellsinsurance policies that cover property damage risk and liability risk. Alsoknown as property and liability insurer |
|
pure risk |
A risk that involves no possibility of gain; either a loss occurs or noloss occurs |
|
rate of return |
The investment earnings expressed as a percentage relative to theprincipal |
|
real property |
Land and whatever is growing on or attached to the land |
|
reduced paid-up insurance nonforfeiture option |
A cash value life insurancepolicy nonforfeiture option under which the policyowner discontinues payingpremiums and uses the policy’s net cash surrender value as a net single premiumto purchase paid-up life insurance of the same plan as the original policy |
|
reimbursement method |
A method of determining the amount of benefits payable under a long-term care insurance policy under which the insurer pays theinsured the amount of covered LTC expenses per day up to the stated maximumdaily benefit amount |
|
reinstatement |
The process by which an insurer puts back into force a life insurance policy that either has been terminated because of nonpayment of renewalpremiums or has been continued under the extended term or reduced paid-upinsurance nonforfeiture option |
|
reinstatement provision |
An individual life insurance policy provision thatdescribes the conditions that the policyowner must meet to put back into force alife insurance policy that either has been terminated because of nonpayment ofrenewal premiums or has been continued under the extended term or reducedpaid-up insurance nonforfeiture option |
|
reinsurance |
Insurance that one insurance company, known as the direct writeror ceding company, purchases from another insurance company, known as thereinsurer or assuming company, to transfer all or part of the risk on insurancepolicies that the direct writer issued |
|
reinsurer |
An insurance company that accepts risks transferred from anotherinsurer in a reinsurance transaction |
|
renewable term insurance policy |
A term life insurance policy that gives thepolicyowner the option to continue the coverage at the end of the specified termwithout presenting evidence of insurability |
|
renewal premium |
An insurance policy premium payable after the initial premium |
|
renewal provision |
The provision in a renewable term insurance policy that givesthe insured the right to continue coverage without presenting evidence of insur-ability |
|
return of premium (ROP) term insurance |
A form of term life insurance thatprovides a death benefit if the insured dies during the policy term and promisesa return of premiums if the insured does not die during the policy term |
|
revocable beneficiary |
A life insurance beneficiary who has no right to the policyproceeds during the insured’s lifetime because the policyowner has the unrestricted right to change the designation during the life of the insured |
|
right of revocation |
The life insurance policyowner’s right to change the beneficiary designation |
|
risk |
The chance or possibility of an unexpected result, either a gain or a loss |
|
risk class |
A grouping of insureds who represent a similar level of risk to the insurer |
|
risk management |
The process by which individuals and businesses identify andassess the risks they face and take measures to eliminate or reduce their expo-sure to those risks |
|
Roth IRA |
An IRA in which contributions are not tax-deductible, but qualifiedwithdrawals are tax-free |
|
salary continuation plan |
A fully self-insured group short-term disability incomeplan that typically provides 100 percent of the insured employee’s salary, beginning on the first day of the employee’s absence resulting from illness or injuryand continuing for a specified period |
|
savings plan |
A retirement plan to which a plan sponsor may make contributionson behalf of a plan participant if the participant makes contributions to the plan |
|
second insured rider |
A supplemental life insurance policy benefit that providesterm insurance coverage on the life of a person other than the policy’s insured |
|
security |
A certificate that represents either an ownership interest in a business(for example, a share of stock) or a debt owed by a business, government, oragency (for example, a bond) |
|
self-administered group plan |
A group insurance plan for which the grouppolicyholder is responsible for handling the administrative and recordkeepingaspects of the plan |
|
self-insurance |
A risk-management technique by which a person or businessaccepts financial responsibility for losses associated with specific risks |
|
separate account |
An investment account the insurer maintains separately fromits general account to isolate and help manage the funds placed in its variableproducts |
|
service fee |
A one-time fee charged an annuity contract owner for specific services |
|
settlement option |
Alternative methods that the owner or beneficiary of a lifeinsurance plicy can elect for receiving payment of the policy proceeds |
|
settlement options provision |
A life insurance policy provision that grants a policyowner or a beneficiary several choices as to how the insurance company willdistribute the proceeds of a life insurance policy |
|
short-term group disability income coverage |
Group disability income cover-age that provides a maximum benefit period of one year or less; such coveragecommonly specifies a maximum benefit period of 13, 26, or 39 weeks |
|
short-term individual disability income coverage |
Individual disability incomeinsurance coverage that provides a maximum benefit period ranging from one tofive years |
|
simple interest |
Interest on the original principal only |
|
simultaneous death act |
A law in many jurisdictions that governs how insurancecompanies are to evaluate common-disaster situations |
|
single-premium deferred annuity (SPDA) contract |
A deferred annuity thatis purchased with a lump-sum premium payment and provides periodicincome payments that begin more than one annuity period after the annuity ispurchased |
|
single-premium immediate annuity (SPIA) contract |
An immediate annuitythat is purchased with a lump-sum premium payment and provides periodicincome payments that begin one annuity period after the annuity is purchased |
|
social insurance program |
A welfare plan that is established by law and administered by a government and that provides the population with income security |
|
Social Security |
In the United States, a federal program that provides specifiedbenefits, including monthly retirement income benefits, to people who havecontributed to the plan during their income-earning years |
|
sole proprietorship |
A business that is owned and operated by one person |
|
solvent |
A term used to describe an insurance company that is able to meet its debts and to pay policy benefits when they come due |
|
speculative risk |
A risk that involves three possible outcomes: loss, gain, or nochange |
|
spouse and children's insurance rider |
A supplemental life insurance policybenefit offered by some insurers that provides term life insurance coverage onthe insured’s spouse and children |
|
spouse insurance rider |
A supplemental life insurance policy benefit that provides term life insurance coverage on the insured’s spouse |
|
standard premium rate |
A premium rate charged insureds who are classified asstandard risks |
|
standard risk |
A proposed insured who has a likelihood of loss that is not significantly greater than average |
|
state insurance code |
A set of laws in each state that regulate insurance in thatstate |
|
state insurance department |
An administrative agency in each state that isresponsible for making sure that companies operating in the state comply withapplicable regulatory requirements |
|
stock bonus plan |
A retirement plan into which a plan sponsor that is a stockcompany makes contributions on behalf of plan participants in the form of thecorporation’s stock |
|
stock corporation |
A corporation whose ownership is divided into units known asshares or shares of stock |
|
stockholder dividend |
A portion of a corporation’s earnings paid to the owners ofits stock |
|
stock insurance company |
An insurance company that is owned by the people andorganizations that own shares of the company’s stock |
|
stop-loss insurance |
Insurance purchased by an employer that self-insures a grouphealth insurance plan which enables the employer to place a maximum dollarlimit on its liability for paying health insurance claims |
|
straight life annuity |
A life annuity which provides periodic income payments foronly as long as the annuitant lives |
|
subaccount |
One of several alternative pools of investments to which the owner ofa variable life insurance policy or variable annuity allocates the premiums shehas paid and the cash values that have accumulated under her policy |
|
substandard premium rate |
A higher-than-standard premium rate chargedinsureds who are classified as substandard risks |
|
substandard risk |
A proposed insured who has a significantly greater-than-average likelihood of loss but is still found to be insurable |
|
suicide exclusion provision |
A life insurance policy provision which states thatpolicy proceeds will not be paid if the insured dies as the result of suicide asdefined by the policy within a specified period following the date of policyissue |
|
supplemental major medical policy |
An insurance policy issued in conjunctionwith an underlying basic medical expense insurance policy to provide benefitsfor expenses that exceed the benefit levels of the underlying basic plan and,often, for expenses that are not covered by the underlying plan |
|
surplus |
For an insurer, the amount by which the company’s assets exceed itsliabilities and capital |
|
surrender charge |
Principles of Insurance (1) A specific charge imposed if the owner of a cash valueinsurance policy surrenders the policy for its cash surrender value. (2) A feetypically imposed if a deferred annuity contract is surrendered within a statednumber of years after it was purchased |
|
surrender value |
The accumulated value of a deferred annuity less any surrendercharges included in the contract |
|
survivorship clause |
A policy provision included in some life insurance policieswhich states that the beneficiary must survive the insured by a specified period,usually 30 or 60 days, to be entitled to receive the policy proceeds |
|
tangible property |
Property that has physical form, such as automobiles, jewelry,or clothing |
|
terminal illness (TI) benefit |
A supplemental life insurance policy benefit underwhich the insurer pays a portion of the policy’s death benefit to a policyowner-insured who suffers from a terminal illness and has a physician-certified lifeexpectancy of less than a stated time, generally 12 or 24 months |
|
term life insurance |
Life insurance that provides a death benefit only if theinsured dies during the period specified in the policy |
|
third-party administrator (TPA) |
An organization other than an insurancecompany that provides administrative services to the sponsors of group benefitplans |
|
third-party policy |
A policy purchased by one person or business on the life ofanother person |
|
total disability |
A disability that meets the requirements of a disability benefitprovision in an insurance policy or policy rider and that qualifies a coveredperson to receive disability income benefits |
|
traditional IRA |
An IRA in which contributions may be tax-deductible and investment earnings are tax-deferred until the funds are withdrawn |
|
underwriter |
An insurance company employee who is responsible for evaluatingproposed risks |
|
underwriting |
The process of identifying and classifying the degree of risk represented by a proposed insured |
|
underwriting guidelines |
The general rules that an insurer uses when assigningproposed insureds to an appropriate risk class |
|
unilateral contract |
A contract in which only one of the parties makes a legallyenforceable promise when entering into the contract |
|
universal life (UL) insurance |
A form of cash value life insurance that is char-acterized by its flexible premiums, its flexible face amount and death benefitamount, and its separation of the three primary policy elements |
|
usual, customary, and reasonable (UCR) fee |
The amount that medical care providers within a particular geographic region commonly charge for a particularmedical service |
|
valued contract |
An insurance policy that specifies the amount of policy benefitthat will be payable when a covered loss occurs, regardless of the actual amountof loss that was incurred |
|
variable annuity |
An annuity under which the amount of the accumulated valueand the amount of the periodic income payments fluctuate in accordance withthe performance of one or more specified investment funds |
|
variable life (VL) insurance |
A form of cash value life insurance in which pre-miums are fixed, but the death benefit and other values may vary, reflecting theperformance of investment subaccounts that the policyowner selects |
|
variable universal life (VUL) insurance |
Cash value life insurance that combines the premium and death benefit flexibility of universal life insurancewith the investment flexibility and risk of variable life insurance |
|
vested interest |
A property right that has taken effect and cannot be altered orchanged without the consent of the person who owns the right |
|
vesting |
A retirement plan’s right to receive partial or full benefits under the planeven if he terminates employment prior to retirement |
|
vision care coverage |
Medical expense coverage that provides the insured withbenefits for expenses incurred in obtaining eye examinations and correctivelenses |
|
voidable contract |
A contract under which one party has the right to avoid hisobligations under the contract |
|
waiver of premium for disability (WP) benefit |
A supplemental life insurancepolicy benefit under which the insurer promises to give up— to waive—its rightto collect premiums that become due while the insured is totally disabled |
|
waiver of premium for payor benefit |
A supplemental life insurance policy benefit which provides that the insurance company will waive its right to collect apolicy’s renewal premiums if the policyowner dies or becomes totally disabled |
|
whole life insurance |
A type of cash value life insurance that provides lifetimeinsurance coverage usually at a level premium rate that does not increase as theinsured ages |
|
withdrawal charge |
A charge imposed on the owner of a deferred annuity whenthe owner withdraws more than a stated percentage of the annuity contract’saccumulated value in one year |
|
withdrawal provision |
A deferred annuity contract provision that gives the contract owner the right to withdraw all or part of the contract’s accumulated valueduring the accumulation period |
|
yearly renewable term (YRT) insurance |
A plan of term life insurance that pro-vides coverage for one year and is renewable for a stated number of years |