contract terms Flashcards
Insurable interest
a financial interest in the life of another person. In a position to loose something of value if the insured should die.
Human Life value approach
In determining how much life insurance is needed by the workers annual earnings are multiplied by the number of years remaining until he/she retires. From the resulting figure taxes and expenses are subtracted.
Commissioner
public official in charge of the states department of inurance. charged with regulating the insurance industry in his/her state by enforcing the insurance laws.
Representations
Statements made by an applicant or an insured that are true to the best of his or her knowledge and belief.
Risk Classifications
Standard : no special requirements
Preferred: Less risky, discount on premium
substandard: a high risk, rated premium
Underwriting
The process of by which an insurer evaluates, classifies, and ultimately either accepts or rejects risks.
Warranty
Statements made that are guaranteed to be absolutely true. Statements made by the insurer must be warranties.
Needs Approach
In Determining how much life insurance is needed the needs of the surviving family are the focus.
Adhesion
take it or leave it
Buy - Sell Agreement
Business use
They agree that when one of them dies the survivors have the right to purchase the deceased partners share of the business. The death benefit from the insurance is used to finance the purchase.
Agents report
a written report from the agent submitted to the insurer along with the application disclosing what the agent knows, observed, or learned about the proposed insureds risks.
Aleatory
Unequal exchange of value.
What coexhists to the word Dime?
Needs approach
Dime =
Debt
Income
Mortgage
solvent
has $$$
