25 Insurance Products Flashcards
What are Activities of Daily Living (ADLs)?
A criterion by which insurance companies determine when the insured becomes eligible for long-term care benefits, based on the inability to perform a certain number of basic activities.
What is the actual cash value of personal property?
The purchase price of any property, less any depreciation that has occurred.
What is an any-occupation policy?
A type of coverage providing full benefits only if the insured cannot perform any occupation.
What does automobile bodily injury liability cover?
The responsibility a driver or car owner has when they are legally accountable for bodily injury losses that other people, including pedestrians, suffer.
What is automobile insurance?
A type of coverage that combines the liability and property insurance coverages that most car owners and drivers need into a single-package policy.
What does automobile medical payments insurance cover?
Bodily injury losses suffered by the driver of the insured vehicle and any passengers, regardless of who is at fault.
What is automobile property damage liability?
The responsibility a driver or car owner has when they are legally accountable for damage to others’ property.
Who is a beneficiary in a life insurance policy?
A person who receives life insurance proceeds as per the policy’s terms.
What is the benefit period in an insurance policy?
The maximum period of time for which benefits will be paid under a disability income or other insurance policy.
What is cash value life insurance?
A type of coverage that pays benefits at death and includes a savings/investment element providing a defined level of benefits to the policyholder prior to the death of the insured person.
What is coinsurance?
A method by which the insured and the insurer share proportionately in the payment for a loss.
What does collision insurance cover?
Reimburses the insured for losses to their vehicles resulting from a collision with another car or object, or from a rollover.
What is comprehensive automobile insurance?
A type of coverage that protects against property damage losses to an insured vehicle caused by perils other than collision and rollover.
What is contents replacement-cost protection?
An insurance option that covers the full replacement cost of any personal property.
What is a co-payment?
A variation of a deductible that requires the insured to pay a specific dollar amount each time claims are made to use benefits for a specific covered expense item.
What is custodial care?
A level of care suitable for people who do not need skilled nursing care, but who nevertheless do require supervision.
What is a death benefit?
The amount that will be paid to the beneficiary when the insured dies.
What is disability income insurance?
A type of coverage that provides a portion of the income lost when the insured cannot work because of illness or injury.
What is the elimination period in insurance?
The time period between the onset of a disability and the date that disability benefits begin.
What is health insurance?
A type of coverage that provides protection against direct medical expenses resulting from illness and injury.
What are Health Maintenance Organizations (HMOs)?
A type of health insurance plan that provides a broad range of healthcare services for a set monthly fee on a prepaid basis.
What is homeowner’s insurance?
A type of coverage that combines liability and property insurance coverages that homeowners and renters typically need into a single-package policy.
What is an insurance policy?
A contract between the person buying insurance (the insured) and the insurance company (the insurer).
Who is considered the insured in an insurance policy?
The individual covered by an insurance policy and, in the case of life insurance, is the person whose life is insured.
What is a life insurance policy?
An insurance contract that promises to pay a dollar benefit to a beneficiary upon the death of the insured person.
What is long-term care insurance?
A type of coverage providing reimbursement for costs associated with custodial care in a nursing facility or at home.
What is Medicaid?
A government health care program for low-income people, funded jointly by the federal and state governments.
What is Medicare?
The federal government’s health care program for the elderly.
What is a needs-based approach in insurance?
A method of calculating the amount of insurance needed, based on consideration of all factors that might potentially affect the level of need.
Who is the owner/policyholder in an insurance policy?
The party who retains all rights and privileges granted by the policy, including the right to amend the policy.
What is an own-occupation policy?
A type of coverage providing benefits if the insured can no longer perform the occupation held at the onset of the disability.
What are policy limits in insurance?
The aspect of a policy specifying the maximum dollar amounts that will be paid under the policy’s terms.
What is a Preferred Provider Organization (PPO)?
A group of health care providers contracting with a health insurance company to provide services at a discount.
What is a premium in insurance?
The fee paid for insurance.
What is term life insurance?
A type of coverage that provides ‘pure protection’ against early death.
What is uninsured and underinsured motorist insurance?
A type of coverage that protects the insured in the case of an accident where the fault/liability lies with an uninsured or underinsured driver.
What is universal life insurance?
A type of coverage that provides both the pure protection of term insurance and the cash-value buildup of whole life insurance.
What is variable-universal life insurance?
A type of universal life insurance coverage that gives the policyholder some choice in the investments made with the cash value accumulated by the policy.
What is whole life insurance?
A type of cash-value life insurance coverage that provides lifetime life insurance protection.
