Individual Accident and Health - Terms

Question 1

_____________ termination of an in-force insurance policy, by either the insured or the insurer, prior
to the expiration date shown in the policy

Answer 1

Cancellation

Question 2

___________ a request filed with an insurance company asking for payment according to the terms of an
insurance policy

Answer 2

Claim

Question 3

________________ policy pays health policy benefits as a reimbursement of actual expenses

Answer 3

Expense-incurred basis

Question 4

______________ a policy that is written on a noncancellable basis with the right to renew
guaranteed

Answer 4

Guaranteed renewable

Question 5

a beneficiary who has a vested interest in the policy and therefore, the policy owner may not exercise certain rights without the consent of the beneficiary

Answer 5

Irrevocable beneficiary

Question 6

____________ policy termination due to nonpayment of premium

Answer 6

Lapse

Question 7

__________ a legal clause in an insurance contract spelling out duties and rights of the insured and
the insurer

Answer 7

Provision

Question 8

____________ returning a lapsed policy to active status

Answer 8

Reinstatement

Question 9

_____________ a formal written law enacted by legislature; insurance statutes can be found in the state
Insurance Code

Answer 9

Statute