C's of Life Insurance

Question 1

Cafeteria Plan

Answer 1

A selection of health care benefits from which employees can select the ones they need.

Question 2

Capital Amount

Answer 2

A percentage of a policy’s principal amount paid to the insured if they suffered the loss of an appendage.

Question 3

Carriers

Answer 3

Entities that process claims and pay benefits in a insurance policy.

Question 4

Cash Value

Answer 4

The amount to which an policy owner is entitled when the policy is surrendered before maturity.

Question 5

Cease and Desist Order

Answer 5

A demand of an individual to stop committing an action violating a provision.

Question 6

Certificate

Answer 6

A statement (or booklet) that confirms that a policy has been written and describes the coverage in general.

Question 7

Certificate of Authority

Answer 7

A document that authorizes a company to begin conducting business and specifies the kind of insurance a company can transact. It is illegal for an insurer to transact insurance without this certificate.

Question 8

Certificate of Insurance

Answer 8

A legal document that indicates an insurance policy has been issued. It specifies both the types and amounts of insurance provided.

Question 9

Claim

Answer 9

A request for the payment of benefits provided by an insurance policy.

Question 10

Coercion

Answer 10

An unfair trade practice in which an insurance company uses physical or mental force to persuade an applicant to purchase insurance.

Question 11

Coinsurance

Answer 11

An agreement between insureds and insurers in which both parties are expected to pay a portion of the potential loss and other expenses.

Question 12

Coinsurance Clause

Answer 12

A provision that specifies the insured and the insurer will share the losses covered by the policy. These proportions are agreed upon in advance.

Question 13

Commingling

Answer 13

A practice in which individuals in a fiduciary capacity illegally mix their personal funds with funds they hold in a trust.

Question 14

Commission

Answer 14

The payment made by insurers to agents or brokers for the sale and service of policies.

Question 15

Commissioner (Director, Superintendent)

Answer 15

The CHIEF EXECUTIVE and ADMINITRATIVE OFFICER of a state Department of Insurance.

Question 16

Comprehensive Policy

Answer 16

A plan that provides health care services, including immunization, routine physicals, preventative care, outpatient services, and hospitalization.

Question 17

Comprehensive Major Medical

Answer 17

A combination of basic coverage and major medical coverage that features high maximum benefits, low deductibles, and coinsurance.

Question 18

Concealment

Answer 18

The act of intentionally withholding known facts that can void a contract if the facts are material.

Question 19

Conditional Contract

Answer 19

An agreement in which both parties must perform specific duties and follow rules of a contract.

Question 20

Controlled Business

Answer 20

An entity that obtains and possesses a license solely to write business on the owner, relatives, immediate family, employer, and employees.

Question 21

Convertible

Answer 21

A policy that can be exchanged for another type of policy by a contractual provisions, at the option of the policy owner, and without evidence of insurability (e.g. term life converted to a form of permanent life)

Question 22

Coordination of Benefits

Answer 22

A provision that determines the primary provider in situations where an insured is covered by more than one policy, ultimately avoiding claims overpayments.

Question 23

Co-pay

Answer 23

An arrangement in which an insured has to pay a specified amount for services “up front” and the insurance provider pays the remainder of the cost.

Question 24

Countersignature

Answer 24

The act of signing an insurance contract by a licensed agent.

Question 25

Coverage

Answer 25

The inclusion of perils (causes of loss) covered within a policy’s scope.

Question 26

Credit Life Insurance

Answer 26

A special type of insurance written to pay off a loan balance in the event of the debtors death.

Question 27

CSO Table

Answer 27

(The Commissioner’s Standard Ordinary Table) A mortality table used in life insurance that mathematically predicts the probability of death.

Question 28

Custodial Care

Answer 28

Care given to help an insured complete their activities of daily living.

Question 29

Consideration

Answer 29

The binding force in a contract that requires something of value to be exchanged for the transfer of risk. The consideration on the part of the insured is the representations made in the application and the payment of premium.; the consideration on the part of the insurer is the promise to pay in the event of loss.

Question 30

Consumer Report

Answer 30

A written and / or oral statement regarding a consumer’s credit, character, reputation , or habits collected by a reporting agency from employment records, credit reports, and other public sources.

Question 31

Contract

Answer 31

An agreement between two or more parties enforceable by law.

Question 32

Contributory

Answer 32

A group insurance plan that requires the employees to pay part of the premium.