Mike Russ Flashcards
Insured
Party covered by an insurance policy
Contributory plan
Used in group insurance. Employers require that’s the employee held pay for their benefit plans by paying part of the premium
Participating Life Insurance
Policy which pays a dividend to its owner
Alien insurance company
An insurance company that is incorporated outside the country
Per capita
“Per head”
Each surviving child will receive an equal share of the proceeds
California insurance guaranty Association
Protects the insured if the insurance company becomes insolvent.
Admitted P&C companies only.
Common Disaster Clause
Use when insured and primary beneficiary die in the same accident or it cannot be determined who died first
Beneficiary
A person whom the insurer will pay the death benefit proceeds upon the death of the insured
Reduced paid-up insurance
A life insurance policy that reduced the death benefit for life of the insured with no additional premium. A non-forfeiture option.
OASDHI
(Social Security)
Provides a minimum floor of retirement
Premium
Amount of money paid by the insured
(Policy-owner) to the insurer
Medical information bureau
A non-profit organization funded by member life and health insurance companies. Prevents fraud or over-insurance.
Endow
In life insurance, The cash value of a policy equals the face amount
Lapse
Happens when the premium for the policy is not paid and the grace period has expired
Life Paid-Up
Type of policy with premiums that are fully paid up within a stated period of time, but endows at age 100
