AFC Module 25 - Insurance Products Flashcards
ADLs
Activities of Daily Living - 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.
Actual Cash Value (of personal property)
the purchase price of any property, less any depreciation that has occured
Any-occupation policy
a type of coverage providing full benefits only if the insured cannot perform any occupation
Automobile bodily injury liability
the responsibility a driver or car owner has when they are legally accountable for bodily injury losses that other people, including pedestrians, suffer
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
Automobile medical payments insurance
a type of coverage that covers bodily injury losses suffered by the driver of the insured vehicle and any passengers, regardless of who is at fault
Automobile property damage liability
the responsibility a driver or car owner has when they are legally accountable for damage to others’ property
Beneficiary
a person who receives life insurance proceeds as per the policy’s terms
Benefit Period
the maximum period of time for which benefits will be paid under a disability income or other insurance policy
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
Coinsurance
a method by which the insured and the insurer share proportionately in the payment for a loss
Collision insurance
a type of coverage that reimburses the insured for losses to their vehicles resulting from a collision with another car or object, or from a rollover
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
Contents replacement-cost protection
an insurance option, sometimes available in homeowner’s insurance policies, that covers the full replacement cost of any personal property
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
Custodial care
a level of care suitable for people who do not need skilled nursing care, but who
nevertheless do require supervision
Death Benefit
the amount that will be paid to the beneficiary when the insured dies
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
Elimination Period
the time period between the onset of a disability and the date that disability benefits begin
Health Insurance
a type of coverage that provides protection against direct medical expenses resulting from illness and injury, based on the concept of payment after an expense occurs
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
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
Insured policy
a contract between the person buying insurance (the insured) and the insurance company (the insurer)
Insured
the individual covered by an insurance policy and, in the case of life insurance, is the person whose life is insured
Life Insurance Policy
an insurance contract that promises to pay a dollar benefit to a beneficiary upon the death of the insured person
Long-term care insurance
a type of coverage providing reimbursement for cost associated with custodial care in a nursing facility or at home
Medicaid
a government health care program for low-income people, funded jointly by the federal and state governments
Medicare
the federal government’s health care program for the elderly
Needs-based approach
a method of calculating the amount of insurance needed, based on consideration of all factors that might potentially affect the level of need
Owner/policy holder
the party who retains all rights and privileges granted by the policy, including the right to amend the policy as well as the right to designate who receives the proceeds
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
Policy Limits
the aspect of a policy specifying the maximum dollar amounts that will be paid under the policy’s terms
Preferred provider organization (PPO)
a group of health care providers contracting with a health insurance company to provide services at a discount
Premium
the fee paid for insurance
Term life insurance
a type of coverage that provides “pure protection” against early death
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
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, along with face amount variability, rate of cash value accumulation, premiums, and rate of return
Variable-universal life insurance
a type of universal insurance coverage that gives the policyholder some choices in the investments made with the cash value accumulated by the policy
Whole Life Insurance
a type of cash-value life insurance coverage that provides lifetime life insurance protection and expects the insured to pay premiums for life
