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Licensing Adjuster > Glossary > Flashcards

Glossary Flashcards

1
Q

Accident Insurance

A

Covers expenses associated with a covered accident and can extend to ambulance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for loss of income, and a
death benefit if injuries prove fatal.

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2
Q

Accumulated Depreciation

A

The total decrease in an item’s value over a period of time. Formula: (annual depreciation x number of
years used). Subtract this number from the item’s replacement cost to get its actual cash value (ACV)

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3
Q

Acreage Reporting Date

A

In crop insurance, the deadline for providing the insurer with an acreage report, which is used to
determine the amount of coverage needed and the premium charged for a particular crop.

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4
Q

Actual Cash Value (ACV)

A

A valuation method used by insurers to reflect an item’s current market value right before being damaged
or destroyed. Formula: (replacement cost - accumulated depreciation)

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5
Q

Actual Production History

A

A history of a farmer’s crop yields over a multi-year period, which is used to determine the normal
production level of a farm.

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6
Q

Adhesion

A

Characteristic of an insurance contract. Means that one party (the insurer) sets the terms, and the other
(the policyholder) can “take it or leave it.”

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7
Q

Adjusted Gross Revenue

Crop Insurance

A

Narrowest (and least expensive) form of crop revenue insurance. Insures farm revenue as a whole
instead of individual crops. Guarantees a percentage of the insured farm’s average revenue.

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8
Q

Adjuster

A

An agent who, for compensation, processes insurance claims. The adjuster investigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the insurance contract. Can
represent either the insured or the insurer.

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9
Q

Adjuster – Emergency

A

Adjusters who are temporarily licensed by the insurance commissioner to handle claims during
catastrophes or emergencies that produce an overwhelming number of claims in a short period of time

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10
Q

Adjuster – Independent

A

Self-employed adjusters who contract with multiple insurers at the same time. Paid on a commission or
fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster.

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11
Q

Adjuster – Public

A

An adjuster who is hired to represent the claimant and help determine a fair indemnification. Usually
specializes in appraisals and negotiation. Paid commission, usually a percentage of final settlement.

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12
Q

Adjuster – Staff

A

Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called:
Company Adjuster.

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13
Q

Advance Payment

Settlement

A

A settlement option that lets the insurer offer some financial relief to the claimant before the claim has
been fully settled. The insurer makes advance payments to the claimant, which are then subtracted from
the final settlement amount. Often used when a claimant suffers bodily injury and is unable to work.

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14
Q

Agency Authority

A

The agent’s authority to act on behalf of someone else (the principal), usually an insurer. This authority is
derived from the agent’s contract with the principal. It can be apparent, express, or implied.

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15
Q

Agency Authority –

Apparent

A

Indirect authority that the agent can reasonably be assumed to have, based on appearances. If an
adjuster is equipped to represent an insurer (with the insurer’s permission), then an individual can assume
that the adjuster has the authority to act on the insurer’s behalf.

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16
Q

Agency Authority –

Express

A

Authority that is expressly given to the agent in writing. Allows the agent to act on behalf of the principal.

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17
Q

Agency Authority – Implied

A

Authority that an agent possesses by implication of her behavior, regardless of whether this authority is
granted in writing. For example, a person portraying herself as a representative for an insurance
company, even though she is not employed by that company.

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18
Q

Agent (Insurance)

A

Someone who has received authority from an insurer to sell or service insurance policies.

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19
Q

Agreed Value

A

A valued policy in which the insurer and the insured agree to a specific value for an item, appraised at the
inception of the policy. Often used to insure items whose value is difficult to quantify, such as antiques or
fine art. Also called a Guaranteed Value policy.

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20
Q

Agreement

A

One of the four requirements of a legally binding contract. All parties involved must agree to the terms of
the contract. Can also refer to a binder, which is the preliminary substance of a contract.

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21
Q

Agricultural Producer

A

A business that grows, harvests, and sells crops for profit.

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22
Q

Aleatory

A

A characteristic of an insurance contract. Means “depending on an unknown future event.” An insurance
contract will only pay IF and WHEN covered damages occur. Neither party knows how much the contract
will end up paying when they enter into the contract.

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23
Q

Answer

A

In liability cases, the defendant’s response to a complaint. There are three possible answers: 1) accept
complaint and pay for damages, 2) deny the complaint, or 3) accept the complaint with a right to insert
evidence into the case.

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24
Q

Annual Depreciation

A

An item’s replacement cost divided by the number of years in its expected lifespan.

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25
Q

Annual Transit

A

An uncontrolled inland marine form that covers loss of goods in transit. It applies to all of the insured’s
shipments during the year.

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26
Q

Appraisal

A

A dispute resolution method which allows the claimant and the insurer each to select an appraiser. The
two appraisers in turn select an umpire. The appraisers then work together to determine a settlement
amount. If they cannot agree, the umpire steps in. Agreement by any two of the three is binding.

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27
Q

Arbitration

A

A dispute resolution method in which the opposing parties each submit their evidence to a mutually-agreed-upon and neutral third party, called an arbitrator. The arbitrator reviews the positions of each
opposing side and makes a final and legally binding decision.

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28
Q

Arbitrator

A

The mutually-agreed-upon and neutral third party in an arbitration who reviews the positions of each
opposing side before making a final and legally binding decision.

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29
Q

Artificially Generated

Current

A

Also called “artificial current.” A peril covered in some property insurance policies. It includes sudden and
accidental damage from any electrical current, except currents that are naturally generated, such as
lightning or static electricity.

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30
Q

Auto Policy

A

Insurance policy designed to protect the policyholder while owning, occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.

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31
Q

Automobile

A

In insurance policies, automobile generally means any vehicle designed for use on public roads.

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32
Q

Automobile No-Fault Laws

A

Laws in effect in some states that require any owner of a vehicle to purchase no-fault insurance; that is,
insurance that indemnifies the insured, regardless of who was at fault in an accident. No-fault laws also
restrict the insured’s right to sue the at-fault party.

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33
Q

Aviation

A

Aviation insurance combines hull insurance for the aircraft and liability insurance for any damage to
others’ property or to people who are not passengers.

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34
Q

Average Weekly Wage

AWW

A

The average amount of income that an employee earns each week while able to perform normal job
duties. When an employee is injured on the job, his workers’ compensation income benefits will depend
on his AWW before the injury.

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35
Q

Bailee

A

An individual or company that receives the property of someone else for a special purpose and returns
the property after use.

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36
Q

Bailee Coverage

A

Reimburses a bailee’s customer for damage to the customer’s property while in the bailee’s control.

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37
Q

Binder

A

A temporary contract provided by an insurer, which ensures coverage until the complete, permanent
policy is issued.

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38
Q

Black Lung Benefits Act

A

Federal program that provides monthly payments and medical treatments to coal miners who become
totally disabled from black lung disease or pneumoconiosis.

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39
Q

Bodily Injury (BI)

A

Physical damage to someone’s person. Liability insurance covers bodily injury that the insured might
cause to another person through negligence.

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40
Q

Boiler & Machinery

A

Insurance coverage designed to indemnify a business for damages to, and damages by, boilers,
machinery, motors, generators, and a variety of other electrical devices and appliances.

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41
Q

Bond

A

A contract wherein one party guarantees the performance of a third party. Bonds involve three parties:
(1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal, neglects
to carry out an obligation it has to the obligee.

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42
Q

Breach of Product

Warranty

A

The failure or falsehood of a stated promise of a product stipulation.

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43
Q

Business Auto Policy

BAP

A

Provides property damage and liability insurance for automobiles used by a business.

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44
Q

Business Floater

A

Inland marine coverage form designed for items that are excluded from most property contracts, such as
accounts receivable records, manuscripts, blueprints, etc.

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45
Q

Business Interruption

Coverage

A

Commercial insurance form designed to indemnify a business if a covered peril leads to lost profits or
revenue. The most common type of Time Element Insurance.

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46
Q

Business Personal

Property

A

Moveable property used for business.

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47
Q

Cancellation and

Nonrenewal Condition

A

Establishes when and how the insurer or the insured can terminate an active insurance contract. The
policyholder can cancel at any time by giving a written notice. Typically, the insurer may only cancel the
policy for a few specific reasons, and it must give written notice of the cancellation or non-renewal
anywhere between 10 and 60 days in advance.

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48
Q

Capitation

A

An arrangement in which an insurer pays a certain healthcare provider up front, and in return, the
healthcare provider agrees to treat all of that insurer’s members.

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49
Q

Catastrophe

A

An occurrence or a sequence of occurrences that causes enormous property losses. Catastrophes are
normally uninsurable by private insurers.

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50
Q

Cause of Loss

A

A form included in a commercial package policy or a commercial property policy that lists the causes of
loss against which the insured property is covered.

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51
Q

Certificate of Insurance

A

An official document that contains the details of an insurance policy. It typically lists the insurance
company, the named insured, what is covered, and the dates of the policy period, among other things.
Policyholders may be required to present their certificate as proof that insurance coverage is in effect.

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52
Q

Commercial General

Liability (CGL)

A

A policy that protects a business against damages and injuries it may cause to third parties.

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53
Q

Civil Law

A

Observes court cases of one citizen charging another citizen for damages caused by tort. Differs from
criminal law.

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54
Q

Claim

A

The request for settlement that the policyholder files with an insurer after she experiences a loss.

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55
Q

Claims-Made Form

A

A liability policy in which the insurer covers claims that are filed during the policy period, no matter when
the loss occurred. The opposite of an occurrence form.

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56
Q

Claims Management

A

The practice of the insurance adjuster of managing a claim by processing it in a prompt and effective
manner from the time the claim is filed until a settlement is reached, while adhering to all local and federal
laws.

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57
Q

Claimant

A

One who files a claim with an insurer for a loss.

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58
Q

Coarse Grains

A

A provision in crop insurance that covers reduction in crop quality, as well as crop-yield losses. Coarse
grains are corn, grain sorghum, and soybeans

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59
Q

Code of Ethics

A

A set of governing professional standards of conduct, usually created by regulatory bodies or government
regulatory agencies. These standards may also be formally codified with statutes.

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60
Q

Coercion

A

The practice of forcing another party to behave in an involuntary manner (whether
through action or inaction) by use of threats, intimidation, or some other form of pressure or force.

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61
Q

Coinsurance

A

A property insurance provision that requires the policyholder to carry adequate coverage (typically at least 80% of the property’s value). If a property does not meet this requirement (i.e. if it is underinsured), the
insurer applies a penalty on claims for partial losses. The penalty requires the policyholder to pay a
percentage of the claim, depending on how underinsured the property is. To calculate: divide the actual coverage by the coinsurance requirement and then multiply that by the loss. In health insurance,
coinsurance refers to the portion of a covered claim that the insured is responsible for paying out-of-pocket, after the deductible

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62
Q

Coinsurance Payment

Health Insurance

A

A percentage of the total health care expenses that the insured must pay.

63
Q

Commerce

A

The exchange or transport of goods or property.

64
Q

Commercial

A

Having to do with commerce or business activity in general.

65
Q

Commercial Crime

Insurance

A

Commercial insurance that covers employee dishonesty and theft by employees or others.

66
Q

Commercial Lines

A

A variety of insurance coverages that protect those involved in the business of creating, selling,
displaying, evaluating, or shipping, etc. Examples include: business owner’s policy (BOP); commercial
property; commercial general liability (CGL); workers’ compensation (WC); professional liability, errors
and omissions (E&O); and employment-related practices liability.

67
Q

Commercial Property

Floater

A

A means of protecting a business’ property that is not in one fixed location. Includes domestic shipments,
instrumentalities of transportation and communication, and commercial property floater risks.

68
Q

Common Crop Insurance

Policy

A

A single uniform policy that combines crop revenue coverage, revenue assurance, income protection, and
indexed income protection.

69
Q

Common Law

A

Based on court decisions and customs when statutory law does not provide an answer; creates
precedent.

70
Q

Compensatory Damages

A

Money awarded in civil court for tangible and intangible damages caused by a policyholder. There are two types: general and special.

71
Q

Compensatory Damages –

General

A

Money awarded for the emotional losses of the plaintiff that will continue after the trial date. These are a subjective value and are determined by the court.

72
Q

Compensatory Damages –

Special

A

Money awarded for the exact value of the physical damage caused to the plaintiff up to the trial date. This is an objective value determined by receipts and medical bills.

73
Q

Competence

A

One of the four qualifications of a legally binding contract. All parties must be competent, with the
necessary legal and mental capacity.

74
Q

Complaint

A

A complaint initiates a civil lawsuit by one person (the plaintiff) requesting financial relief from damages
caused by someone else (the defendant).

75
Q

Concealment

A

The act of withholding relevant material facts from an insurer.

76
Q

Conditionally Renewable

Policy

A

A policy that gives the insurer the option to cancel coverage only if certain stated conditions are met.

77
Q

Conditions

A

The section of a policy that qualifies or limits an insurer’s promise to pay or perform.

78
Q

Consideration

A

One of the four qualifications of a legally binding contract. All parties must bring something of value to the contract.

79
Q

Contract

A

An agreement entered into voluntarily by two parties or more with the intention of creating a legal
obligation.

80
Q

Contribution by Equal

Shares

A

Each policy pays an equal share of the loss up to the lowest policy limit. If the loss is not fully covered, the
process is repeated among the remaining insurers with available coverage. As each policy limit is
reached, the remaining portion of the loss is split equally between the insurers with available coverage
until the loss is either fully covered or all of the policy limits have been reached.

81
Q

Controlled Line Floaters

A

Standardized forms provided by a bureau and filed with the state. These forms disclose the rates being
charged and can be used as both general property floaters (such as “personal effects” or “personal
property”) and specific property floaters that break down covered property by type.

82
Q

Copayment

A

The amount a policyholder must pay each time she accesses the benefits of a health insurance policy.

83
Q

Coverages

A

The amount and extent of protection provided by an insurance policy.

84
Q

Crime

A

An offense against the state or federal government, or a breach of law, for which the offender must make
satisfaction to the public.

85
Q

Criminal

A

Someone who has been convicted of a criminal act in a court of law.

86
Q

Crop Hail Insurance

A

A form of crop yield insurance that is usually provided by private insurers without government subsidy. It
offers named-peril protection on an acreage basis.

87
Q

Crop Insurance

A

Insurance coverage designed to protect a farmer’s financial investment in his crops. Covers losses to a
crop’s profitability.

88
Q

Crop Revenue Insurance

A

Crop insurance that combines crop-yield insurance and price insurance to protect against losses to crop
value

89
Q

Crop Yield Insurance

A

Crop insurance that covers physical losses to actual crops.

90
Q

Damages – General

A

Intangible losses, such as pain and suffering or mental anguish. See also: “Punitive Damages.”

91
Q

Damages – Special

A

Tangible, financial losses that can be documented.

92
Q

Dangerous Instrumentality

Doctrine

A

States that anyone involved in the use of inherently dangerous products or machines is held 100% liable
for their own damages.

93
Q

Declaratory Judgement

Action

A

As an alternative dispute resolution before litigation, the court can clarify the legal relationship and the
rights of both parties: the claimant and the principal. Does NOT decide how to resolve the case.

94
Q

Declarations Page

A

Also called the Dec page. First page of a policy, which provides a summary of the contract; includes
names of insured, addresses, coverage limits, policy period, etc.

95
Q

Declined Coverage

A

Takes place when an insurance company rejects an application for coverage.

96
Q

Deductible

A

The amount the policyholder must pay out-of-pocket before the insurance company will pay the remaining
costs. There are three types: fixed, franchise, and percentage.

97
Q

Deductible – Fixed

A

One specific, predetermined amount that a policyholder must pay out-of-pocket before his policy
coverage kicks in.

98
Q

Deductible – Franchise

A

The policyholder only pays if the total damages come out to less than his deductible. If the cost of
damages equals or exceeds the deductible, the insurer pays the full amount and the policyholder pays
nothing.

99
Q

Deductible – Percentage

A

A deductible that is calculated as a percentage of the value of the insured risk.

100
Q

Defamation

A

Damage to another’s name or reputation, whether by libel (which is in print) or by slander (which is in
speech).

101
Q

Default Judgement

A

A judgment entered by the court against a party who fails to present his case or defense in a civil action.
Most commonly, this applies when the defendant fails to show up and answer the claim brought against
him, so the court decides in favor of the plaintiff.

102
Q

Definitions

A

Page in policy that gives specific limited meaning to terms used in policy.

103
Q

Depreciation

A

A decline in value of property caused by wear or loss of usefulness, usually measured by a specific
formula.

104
Q

Diligence and Dispatch

A

An adjuster should act with speed and care in completing the adjusting process. Failure to settle a claim in a timely manner can result in disciplinary action by the insurance commissioner, including a fine or loss
of license.

105
Q

Disclosure

A

An adjuster must disclose all financial interests in any direct or indirect aspect of an adjusting transaction.
For example, an adjuster cannot refer a claimant to his brother’s auto repair business without first telling
the claimant that the business is owned by a relative.

106
Q

Discoverable

A

Capable of being demanded and handed over as evidence in a court of law; during litigation proceedings, the adjuster’s claims file is discoverable.

107
Q

DP-1

A

“Basic Form” of Dwelling Policy. Covers direct physical loss to property caused by only three perils: fire,
lightning, and internal explosion (coverage for other perils can be added by endorsement).

108
Q

DP-2

A

“Broad Form” of Dwelling Policy. A named peril policy that covers everything on the DP-1 Basic from, as
well as 9 Extended Form perils and the Broad Form perils.

109
Q

DP-3

A

“Special Form” of Dwelling Policy. Unlike DP-1 and DP-2, DP-3 offers open-peril coverage for the
property’s structures (but named peril for personal property).

110
Q

Dwelling Policy (DP)

A

Property coverage for people and businesses who are not eligible for homeowners insurance or do not
need the extensive coverage of the homeowners policies.

111
Q

Electronic Data Processing

EDP

A

An endorsement that covers the loss of computer equipment, data systems, information storage media,
and expenses or lost income related to EDP losses

112
Q

Eligibility

A

Eligibility Requirements are found in some insurance policies. They identify the conditions that must be
met by the policyholder in order to qualify for coverage under a policy.

113
Q

End of Insurance Date

A

The date that crop insurance coverage will end. It is the earliest of the following: total crop destruction,
harvest of the crop, final adjustment of a loss, abandonment of a crop, or a date predesignated by crop type.

114
Q

Endorsement(s)

A

An optional provision that can be added to a policy to increase, reduce, or modify coverage for specific
property types or perils.

115
Q

Errors and Omissions

E&O

A

Liability insurance that indemnifies professionals for errors or oversights on the part of the insured that
caused harm to their clients.

116
Q

Estoppel

A

A legal principle that bars a party from asserting something contrary to what has been implied by his
previous actions or statements. This is a form of “implied waiver”; for example, if the insurer regularly
accepts late payments, it waives its right to deny coverage due to late payment.

117
Q

Ethical

A

Adhering to moral laws and to principles of fairness.

118
Q

Equipment Floater

A

An uncontrolled form that covers heavy machinery and equipment needed to conduct business.
Protection on this form includes loss by fire, landslide, theft, and other perils to equipment that is being
stored, on its way to the job site, or at the job site itself. Coverage is available on an open peril or named
peril basis for all equipment, whether rented, owned, or borrowed.

119
Q

Evaluation

A

The process of determining the approximate value of damages relevant to a claim (i.e. total of medical
bills, costs of repair & replacement of damaged property) and considering the financial provisions of the insurance policy to decide on a fair settlement amount.

120
Q

Excess Policy

A

Pays for a loss only after the primary policy’s limits have been exhausted. See also: “Primary Policy.

121
Q

Exclusions

A

A section of an insurance policy that reduces coverage by listing specific individuals, property, or perils that the policy does NOT cover.

122
Q

Exposure

A

The extent to which an item is open to damage or loss. More exposure means a loss is more likely, so
this is a determining factor in an insurer’s underwriting decisions.

123
Q

Fair Credit Reporting Act

FCRA

A

This act regulates how companies collect, share, and use consumers’ personal and financial information.
It is enforced by the US Federal Trade Commission and civil lawsuits.

124
Q

False Advertising

A

Presenting something to the public in a deceptive or untrue manner; misrepresentations in
advertisements.

125
Q

Farm

A

A property where a farmer or rancher both resides and conducts commercial business.

126
Q

Farm Liability Coverage

Form

A

A form added to a farm insurance policy that provides coverage for injury and damage to a third party.

127
Q

Farm Property Coverage

Form

A

A form added to a farm insurance policy that provides coverage for the dwelling, other structures, farm
structures, and both household and farm personal property.

128
Q

Farmer

A

Someone in the business of growing, harvesting, and selling crops for profit. In farm insurance, a farmer
must reside and do business on the same premises.

129
Q

Federal Crop Insurance

Act

A

Legislation passed by Congress that established the federal crop insurance program.

130
Q

Federal Crop Insurance

Corporation (FCIC)

A

A government-owned corporation that manages the federal crop insurance program.

131
Q

Federal Emergency
Management Agency
(FEMA)

A

A branch of homeland security that coordinates relief programs when disaster strikes an entire
community.

132
Q 
Federal Employees 
Compensation Act (FECA)
A

Federal program that provides insurance for civilian employees of the federal government. As a workers’
compensation program, FECA covers disability or death sustained while the employee is on the job. Pays
medical expenses and two-thirds of normal monthly salary while the employee is unable to work.
Additional payments may be made for permanent injuries or to dependents.

133
Q 
Federal Employers 
Liability Act (FELA)
A

Federal program enacted in 1908 before most state workers’ compensation laws. FELA protects only
interstate railroad workers and their families, by allowing workers who are not covered by regular WC
laws to sue their employer.

134
Q

Fiduciary

A

One of the terms that describes the adjuster’s relationship with the principal (the insurer). As fiduciary
agent, the adjuster acts for the benefit of the principal, rather than for his own benefit.

135
Q

Fiduciary Duty

A

A legal relationship in which one party represents the best interests of another. As the insurer’s fiduciary
agent, the adjuster makes financial decisions on behalf of the insurer and must uphold the insurer’s
financial interests in all transactions, while ensuring that claims are settled fairly according to their
insurance contracts. This means the adjuster must perform her job with honesty and “utmost good faith”
at all times.

136
Q

Final Planting Date

A

In crop insurance, the last day to plant crops in order to receive the full insurance yield and/or revenue
guarantee selected.

137
Q

First Named Insured

A

The first person or entity named as insured on the declarations page of a policy.

138
Q

First Party Claim

A

A claim that a policyholder files with her own insurer (as opposed to a third party claim, which the claimant
files with someone else’s insurer).

139
Q

Floater

A

A term for inland marine policies that cover mobile property. See also: “Controlled Lines Floater” and
“Uncontrolled Lines Floater.”

140
Q

Flood

A

An overflow of inland or tidal waters; an unusual or rapid accumulation of runoff or surface waters from
any source; mud flows; collapse or subsidence of land along the shore of a lake or other body of water.

141
Q

Flood Insurance

A

Provides relief following flood damage to communities who participate in the NFIP floodplain management
system; covers damages to the building and its contents

142
Q

Floodplain Management

A

Maps out areas with high risk of flood, so that communities will avoid building in these areas

143
Q

Fraternal Benefit Societies

A

Non-profit, mutual aid organizations that engage primarily in charitable or benevolent activities. They offer
their members insurance against death, disease, and disability. Also known as Fraternal Associations.

144
Q

Fraud – Hard

A

Deliberately faking or causing an incident in order to collect money.

145
Q

Fraud – Soft

A

Inflating the gravity or the extent of claims in order to receive a higher indemnification.

146
Q

Free on Board (FOB)

Destination Point

A

A term used in Ocean Marine insurance. It means that the title to the property being shipped remains with
the shipper until it arrives at the buyer’s destination and the buyer accepts the property.

147
Q

Free on Board (FOB)

Shipping Point

A

A term used in Ocean Marine insurance. It means that the title to the property being shipped transfers to
the buyer as soon as the property leaves the shipping dock.

148
Q

Full Release Settlement

A

A settlement option whereby the insurer pays all damages at once in an immediate “lump sum” and the
claimant signs a “full release form” which releases the insurer from any further liability. This is the most
common settlement option.

149
Q

Good faith

A

Acting honestly and fairly, with good intentions and full disclosure.

150
Q

Government Insurance

A

An insurance program where risks are transferred to a government agency. Also known as social
insurance. Government insurance usually exists in situations where the exposure to loss is too high for
private insurers to reliably insure risks.

151
Q

Group Risk Income

Protection

A

A form of Crop Revenue Insurance that protects a whole county or area instead of individual farmers.
Automatically indemnifies if county income falls below a certain level.

152
Q

Guaranteed Renewable

Policy

A

A disability or life insurance policy that cannot be canceled by the insurer until the insured reaches a
certain age. The insurer may increase the premiums over the life of the policy.

153
Q

Guaranty Association

A

A non-profit association of insurers from similar markets that handle and pay claims for insurers that have been declared insolvent.

154
Q

Hazard

A

An instance, behavior, or condition that increases the chance of incurring a loss, or increases the severity
of the loss.

Licensing Adjuster (2 decks)

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