A's of Life Insurance

Question 1

Accelerated Benefits

Answer 1

Riders attached to life insurance policies that allow death benefits to be used to pay for nursing or convalescent home expenses.

Question 2

Convalescent

Answer 2

Convalescent homes, commonly called Inpatient Rehabilitation Facilities, are designed to provide care for senior patients who are recovering from surgeries or long-term illnesses.

Question 3

Accident

Answer 3

An unforeseen, unplanned traumatic injury to the body.

Question 4

Accident Insurance

Answer 4

A type of insurance that protects the insured against loss caused by accidental bodily injury.

Question 5

Accidental Bodily Injury

Answer 5

An unforeseen, unplanned traumatic injury to the body.

Question 6

Accidental Death and Dismemberment (AD&D)

Answer 6

An insurance policy that pays a specific amount or a specific multiple of the insured benefit if the insured dies or loose 2 LIMBS or Looses their sight due to an accident.

Question 7

Accidental Death Benefits

Answer 7

This is a policy rider specifying that the cause of death will be examined to conclude if it complies with the policy description of accidental death.

Question 8

Accidental Death Insurance

Answer 8

An insurance policy that provides payment if the insureds death is caused by an accident.

Question 9

Accumulation Period

Answer 9

The period when the annuitant makes investments or payments in an annuity and when those payments earn tax deferred interest. (The Pay-in Period)

Question 10

Acquired Immunity Deficiency Syndrome (AIDS)

Answer 10

An incurable and infectious disease caused by the Human Immunodeficiency Virus (HIV)

Question 11

Activities of Daily Living (ADL’s)

Answer 11

Activities individuals need to do everyday. such as getting dressed, moving about, eating, and bathing.

Question 12

Actual Cash Value (ACV)

Answer 12

The required amount for property lose or to pay damages. Which is calculated by subtracting DEPRECIATION from the properties CURRENT REPLACEMENT VALUE.

Question 13

Actual Charge

Answer 13

The amount a supplier or physician bills for a particular suppliers service.

Question 14

Actuary

Answer 14

An individual trained the technical aspects of insurance and related fields. Particularly in the mathematics of insurance; an individual on behalf of the insurer, determines the mathematical probability of loss.

Question 15

Adhesion

Answer 15

An insurance provider offers a contract on a take it or leave it basis. The insureds only option is to ACCEPT or REJECT the agreement period. Any ambiguities in the contract will be settled in the insurers favor.

Question 16

Adjustable Life

Answer 16

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

Question 17

Adjuster

Answer 17

A representative of an insurance carrier who investigates and acts on the insurer behalf to obtain agreements on the amounts of insurance claims.

Question 18

Administrator

Answer 18

A person appointed by a court as a fiduciary to settle a deceased individuals financial affairs and estate.

Question 19

Admitted (Authorized) Insurer

Answer 19

An insurer authorized to conduct business in a particular STATE.

Question 20

Adult Daycare

Answer 20

A program for impaired adults that attempts to meet their functional , social and health needs in a setting away from their homes.

Question 21

Agency

Answer 21

An insurance company or sales office.

Question 22

Agent

Answer 22

A person with a license to negotiate , sale or effect insurance contracts on behalf of an insurer.

Question 23

Agent Authority

Answer 23

Special powers granted to an agent by their agency contract.

Question 24

Aleatory

Answer 24

An unequal EXACHANGE. A contract in which the participating parties agree to an exchange of unequal amounts. Insurance contracts are aleatory.

Question 25

Alien Insurer

Answer 25

An insurance provider who is incorporated outside the United States.

Question 26

Alzheimer’s Disease

Answer 26

A disease that cause the individual to become dysfunctional because of the reduction of brain cells that cause memory loss.

Question 27

Ancillary

Answer 27

Additional miscellaneous services provided by a hospital such as LAB WORK, X-RAYS and ANESTITIA. This does not apply to Hospital Room and Board Expenses.

Question 28

Annual Statement

Answer 28

An insurer must submit a detailed financial report each year to the department of insurance in any state where it conducts business.

Question 29

Annuity

Answer 29

A contract that provides income for life or for a specified period of years.

Question 30

Apparent Authority

Answer 30

The appearance or assumption of authority based on the the principles words, actions, or deeds or due to circumstances the principle created.

Question 31

Applicant

Answer 31

A person making an application for themselves or another to be insured under an insurance contract.

Question 32

Application

Answer 32

A document that gather information for underwriting purposes once a policy is issued and unanswered questions are considered waived by the insurance company.

Question 33

Approved Amount

Answer 33

The amount Medicare decides to be reasonable for a service covered under PART B of medicare.

Question 34

Assignment (LIFE)

Answer 34

The transfer of a life insurance policy ownership rights from one person to another.

Question 35

Assignment (HEALTH)

Answer 35

A claim to a medical supplier or provider to receive payments directly from Medicare.

Question 36

Attained Age

Answer 36

The age of the insured at specified date

Question 37

Attending Physicians Statement (APS)

Answer 37

A statement commonly obtained from the applicants doctor.

Question 38

Authorized (ADMITTED - INSURER)

Answer 38

An insurance provider authorized to conduct insurance in a particular STATE.

Question 39

Avoidance

Answer 39

A method of dealing with risk by deliberately avoiding it.

Question 40

Adverse Selection

Answer 40

The tendency of risk with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.

Question 41

Agent Appointment

Answer 41

The authorization of an agent to act for or represent an insurer.