1 - An Overview Flashcards
Who is the policy owner?
The one who pays the premiums.
What type of contract is an insurance contract?
It is a unilateral contract with the insurer being the offeror.
What are policy premiums?
The amounts that the policy owner pays to the insurance company to get the coverage.
When is a claim filed?
When the event insured against occurs (death, disability, old age, etc.)
What is the face amount?
The amount payable to the beneficiary should the event insured against occur.
Who is the life insured?
The person identified in the insurance policy as the life insured. It can be the policy owner, or another person.
What is a beneficiary?
The person to whom the face amount is owed by the insurance company.
Define “coverage.”
Coverage is the face amount from a life insurance, the benefit received from a disability income insurance policy, or the reimbursement amount from a health insurance policy.
What is underwriting?
It is the process of assessing risk for the insurer. Premiums are based on this assessment.
What is Disability Income Insurance?
It pays a monthly sum to a person who is unable to work due to sickness or injury.
What is Health Insurance?
It covers a broad range of policies that pertain to health. Some examples are dental plans, and prescription drug plans.
What are the key components of the agency contract?
- Solicit insurance (help fill out application)
- Collect initial premium
- Deliver the policy
What are the four main types of regulatory bodies?
- CLHIA
- Courts
- Government
- OFSI
What 2 acts are important to the insurance industry?
- Uniform life insurance act
2. Uniform accident and sickness act
