General Insurance Vocab Flashcards
Facility of Payment Provision
The payout of benefits to any relative appearing entitled if there is no assigned beneficiary.
Graded Premium Whole Life
Version of a traditional whole life policy where the first couple of years are cheaper in premium cost and then increase after the initial years to then level out premium payments.
HMO’s (Health Maintenance Organization)
Stresses the importance of preventive health care. Fixed fee is paid periodically.
Indexed Whole Life
Where the death benefit increases based of off inflation..
Installment Refund Annuity
Provides the funds remaining to be payed to the beneficiary at the annuitants death.
Integrated Deductible
Paying down a medical deductible with a basic plan and then the leftover with a major medical plan.
Interest adjusted net cost method
Comparing cost of similar policies by using indexes that calculate the value of money throughout time (Interest - Inflation)
Lien System
Lein put on a substandard rated insurance policy so that if the insured died due to the cause of the substandard rating the death benefit is less.
Loading
Amount added to net premiums to cover company expenses and contingencies payed from gross premiums
McCarran-Ferguson Act
Also known as public law, returned the power to regulate insurance to state governments from federal.
Medical Expense Insurance
Pays benefits to non surgical doctors sometimes pays for home and office calls.
Medicare Part A
Hospital benefits
Medicare Part B
Supplementary medical insurance covers physician services, medical services, and supplies not covered A
Minimum Premium Plan (MPP)
Designed as a self-insured plan that helps insure against large unpredictable losses.
Modified Endowment Contract
A life insurance policy where in the initial years payments exceed the sum of net level premium.
(MET) Multiple Employer Trust
Small group of people that would have unfavorable premiums individually so they come together to get more favorable premium prices.
Multiple Protection Policy
A mix of life and term insurance that during the term portion multiples are payed out if the insured dies. If not during the term then the regular death benefit is payed out
Non-Duplication Provision
Stipulates the insurer from receiving benefits from group plan if covered by (reimbursed) under their spouses plan.
Non-Medical insurance
Insurance issued without the need of a regular medical examination.
Non-Qualified plan
A retirement plan that does not meet the federal requirements therefore un-qualified.
Optionally renewable
Insurer reserves the right to insure and can only not secure on two dates: 1. The Premium Due Date 2. Any anniversary date of the policy.
Parol Evidence Rule
Brings all verbal statements into written ones in contract disallowing any change verbally.
Permanent Flat Extra Premium
A fixed charge applied to the premium due to having a substandard rating.
Policy-owner (Policyholder)
Used interchangeably as the person who simply pays on the policy.
PPO’s Proffered Provider Organizations
Group of care providers that agree to give coverage to a certain group at fees negotiated in advanced
Premium Factors
Three factors considered when calculating a premium: Mortality, Expense, and Interest
Producer
Another title for insurance agent
Re-Entry Option
At the renewal time of the policy it guarantees coverage without needing evidence of insurability.
SEPA Simplified Employee Pension
Pension insurance payed for pre-tax income for smaller groups of workers (Helping to guarantee pension)
Section Plans aka Cafeteria Plan aka Section 125
Multiple plan riders (a menu) that can be chosen and added to ones policy
Sliding
Telling the applicant a feature on the insurance must be purchased when it does not or saying something can be added “free of charge” when there is in fact a charge aka U sliding on em
Split-Dollar Life Insurance
An agreement between two parties where the insured and the other party pay the premium split and the other party receives the cash value while the insured can still choose the beneficiary of the death benefits.
Stock Redemption Plan
An agreement where a corporation purchases a deceased stockholders interest.
(STOLI) Stranger Originated Life Insurance
Where an agent gets consumers usually (older) to buy another insurance policy that they will help pay the premiums for in return receiving the death benefit and being named the beneficiary
Surgical Schedule
The surgical expenses said to be covered.
Taxable wage bases
The maximum amount of earnings FICA taxes must be paid
Tax-Sheltered Annuity
Annuity plan reserved for non profit organizations and their employees tax differed until benefits are received.
Trustee
One holding legal title title to property for the benefit of another such as a bank.
Twisting / Churning
Inducing a policy owner to allow a policy to lapse and have them buy into another one (Illegal)
