Chapter 21 vocab Flashcards
An agreement in which one party (the insurer) compensates another party (the insured) or any losses.
Insurance
The amount of money an insured pays for insurance coverage.
Premium
The person named in a life insurance policy to receive the proceeds.
Beneficiary
The financial interest (or possible loss) that a policy-holder has in the insured person or property.
Insurable Interest:
Life insurance that requires the payment of premiums until the face value is reached or the insured is deceased.
Straight Life Insurance
Life insurance issued for a particular period, usually five or ten years.
Term Life Insurance
A document that is signed during your lifetime that provides for the distribution of your property until death.
Will
Person who dies with a will.
Testator/Testatrix
The intention that the document is meant to be a last will and testament.
Testamentary Intent
The mental ability to create a will.
Testamentary Capacity
Means to be without a will.
Intestate
The process of validating and executing a will.
Probate
The person designated in the will to carry out the terms.
Executor/Executrix
Legal device by which property is held by one person for the benefit of another.
Trust
A person who holds title to the property for another’s benefit.
Trustee
