Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Network Marketing > Terms > Flashcards

Terms Flashcards

1
Q

Adverse selection

A

insuring of risks that are more prone to losses than the average risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Agent/Producer

A

a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Applicant or proposed insured

A

a person applying for insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Beneficiary

A

a person who receives the benefits of an insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Death benefit

A

the amount paid upon the death of the insured in a life insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Fraud

A

intentional misrepresentation or deceit with the intent to induce a person to part with something of value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Insurance policy

A

a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Insured

A

person covered by the insurance policy; may or may not be the policyowner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Insurer (principal)

A

the company who issues an insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Lapse

A

policy termination due to nonpayment of premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Life insurance

A

coverage on human lives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Policyowner

A

the person entitled to exercise the rights and privileges in the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Premium

A

the money paid to the insurance company for the insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Aleatory

A

Unequal exchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Personal

A

Between insurer and insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Adhesion

A

Take it or leave it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Unilateral

A

One-sided promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Warranties

A

Absolutely true statements. Breach of warranties can void the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Policyowner

A

Pays premium to the insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Insurance company

A

Issues policy to policyowner and pays benefit to beneficiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Underwriting

A

The risk selection and classification process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Attained age

A

the insured’s age at the time the policy is issued or renewed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Cash value

A

a policy’s savings element or living benefit

24
Q

Face amount

A

the amount of benefit stated in the life insurance policy

25
Q

Deferred

A

withheld or postponed until a specified time or event in the future

26
Q

Endow

A

the cash value of a whole life policy has reached the contractual face amount

27
Q

Level premium

A

the premium that does not change throughout the life of a policy

28
Q

Liquidation of an estate

A

converting a person’s net worth into a cash flow

29
Q

Nonforfeiture values

A

benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses

30
Q

Policy maturity

A

in life policies, the time when the face value is paid out

31
Q

Securities

A

financial instruments that may trade for value (for example, stocks, bonds, options)

32
Q

Viator

A

The owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract

33
Q

Provisions

A

Define the characteristics of an insurance contract, such as the rights and obligations under the contract, and are fairly universal from one policy to the next

34
Q

Riders

A

added to a policy to modify provisions that already exist.

35
Q

Options

A

offer insurers and insureds ways to invest or distribute a sum of money available in a life policy.

36
Q

Activities of daily living (ADLs)

A

a person’s essential activities that include bathing, dressing, eating, transferring, toileting, continence

37
Q

Assignment

A

transfer of rights of policy ownership

38
Q

Consideration

A

something of value that each party gives to the other (binding force in any contract)

39
Q

Indemnity

A

a principle of reimbursement on which insurance is based; in the event of loss, an insurer reimburses the insureds or beneficiaries for the loss

40
Q

Lump sum

A

payment of the entire benefit in one sum

41
Q

Minor

A

a person under legal age

42
Q

NAIC

A

National Association of Insurance Commissioners, an organization composed of insurance Commissioners from all states and jurisdictions formed to resolve insurance regulatory issues

43
Q

Principal

A

the face value of the policy; the original amount invested before the earnings

44
Q

Business entity

A

a corporation, association, partnership, limited liability company, or other legal entity

45
Q

Cease and desist

A

to stop or discontinue

46
Q

Coercion

A

forceful act or threat aimed to influence a person to act against their will

47
Q

Commissioner

A

the head of the State Department of Insurance

48
Q

Disclosure

A

revealed information to help someone make an intelligent and informed decision

49
Q

ERISA

A

Employee Retirement Income Security Act: defines federal standards for private pension plans

50
Q

Exempt

A

not subject to an obligation

51
Q

Home state

A

a state in which an insurance producer maintains their principal place of residence or principal place of business and is licensed to act as an insurance producer

52
Q

Inducement

A

an offer that attempts to influence the other party

53
Q

Insolvent

A

unable to meet financial obligations

54
Q

Nonforfeiture values

A

benefits in a life insurance policy that the policyowner cannot lose

55
Q

Person

A

an individual or a business entity

56
Q

Reciprocity

A

a mutual interchange of rights and privileges

57
Q

Uniform application

A

the NAIC Uniform Application for resident and nonresident producer licensing

Network Marketing (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions