C's of Life Insurance Flashcards
Cafeteria Plan
A selection of health care benefits from which employees can select the ones they need.
Capital Amount
A percentage of a policy’s principal amount paid to the insured if they suffered the loss of an appendage.
Carriers
Entities that process claims and pay benefits in a insurance policy.
Cash Value
The amount to which an policy owner is entitled when the policy is surrendered before maturity.
Cease and Desist Order
A demand of an individual to stop committing an action violating a provision.
Certificate
A statement (or booklet) that confirms that a policy has been written and describes the coverage in general.
Certificate of Authority
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.
Certificate of Insurance
A legal document that indicates an insurance policy has been issued. It specifies both the types and amounts of insurance provided.
Claim
A request for the payment of benefits provided by an insurance policy.
Coercion
An unfair trade practice in which an insurance company uses physical or mental force to persuade an applicant to purchase insurance.
Coinsurance
An agreement between insureds and insurers in which both parties are expected to pay a portion of the potential loss and other expenses.
Coinsurance Clause
A provision that specifies the insured and the insurer will share the losses covered by the policy. These proportions are agreed upon in advance.
Commingling
A practice in which individuals in a fiduciary capacity illegally mix their personal funds with funds they hold in a trust.
Commission
The payment made by insurers to agents or brokers for the sale and service of policies.
Commissioner (Director, Superintendent)
The CHIEF EXECUTIVE and ADMINITRATIVE OFFICER of a state Department of Insurance.
Comprehensive Policy
A plan that provides health care services, including immunization, routine physicals, preventative care, outpatient services, and hospitalization.
Comprehensive Major Medical
A combination of basic coverage and major medical coverage that features high maximum benefits, low deductibles, and coinsurance.
Concealment
The act of intentionally withholding known facts that can void a contract if the facts are material.
Conditional Contract
An agreement in which both parties must perform specific duties and follow rules of a contract.
Controlled Business
An entity that obtains and possesses a license solely to write business on the owner, relatives, immediate family, employer, and employees.
Convertible
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)
Coordination of Benefits
A provision that determines the primary provider in situations where an insured is covered by more than one policy, ultimately avoiding claims overpayments.
Co-pay
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.
Countersignature
The act of signing an insurance contract by a licensed agent.
Coverage
The inclusion of perils (causes of loss) covered within a policy’s scope.
Credit Life Insurance
A special type of insurance written to pay off a loan balance in the event of the debtors death.
CSO Table
(The Commissioner’s Standard Ordinary Table) A mortality table used in life insurance that mathematically predicts the probability of death.
Custodial Care
Care given to help an insured complete their activities of daily living.
Consideration
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.
Consumer Report
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.
Contract
An agreement between two or more parties enforceable by law.
Contributory
A group insurance plan that requires the employees to pay part of the premium.
