Terms to Know Flashcards
Agent/Producer
A legal representative of an insurance company; Producer includes agents and brokers; agents of the insurer
applicant or proposed insured
person applying for insurance
consent
permission to do something
insurable interest
the policy owner facing the possibility of losing something of value in the event of loss
insurance policy
contract between policy owner (and/or insured) and an insurance company agrees to pay the insured or beneficiary for loss caused by specific events
insured
person covered by the insurance policy (may/maynot be the policy owner)
insurer (principle)
company who issues an insurance policy
policyowner
a person entitled to exercise the rights and privileges in the policy
premium
the money paid to the insurance company for the insurance policy
accidental bodily injury
an unforseen and unintended injury that results from an accident rather than sickness
cafeteria plan
type of employee benefit plan that allows insureds to choose between different types of benefits
cancellation
termination of an in-force insurance policy, by either the insured or insurer, prior to the expiration date on policy
comprehensive coverage
health insurance that provides coverae for mot types of medical expenses
deductible
a specified dollar amount that the insured must pat first before the insurance company will pay the policy benefits
lump sum
a payout method that pays the beneficiary the entire benefit in one payment
nonrenewal
termination of an insurance policy at its expiration fate y not offering a continuation of the existing policy or a replacement policy
riders
added to the basic insurance policy to add, modify, or delete policy provisions
sickness
an illness, which first manifests itself while the policy is in formce
tax exempt
not subject to taxation
taxable
subject to taxation
underwriting
risk selection and classification process
Guaranteed renewable
a policy that is written on a noncancellable basis with the right to renew guaranteed
irrevocable beneficiary
beneficiary who has vested interest in the policy resulting in the policy owner not being able to exercise certain rights without beneficiaries consent
NAIC (National Association of Insurance Commissioners)
An organization composed of insurance commissioners from all 50 States
total disability
inability of the insured to preform any occupation for which the insured is reasonably suited by education, training, or experience.
waiver
relinquishment of a right or interest
Adjusted gross income
gross income (all income) minus adjustments to income
Affordable care act (ACA or PPACA)
a federal law that mandates increased preventive, educational, and community-based health care services, and that established the health insurance marketplace to make health coverage available to any uninsured individuals.
Estate
a persons net worth
overinsurance
insurance that exceeds in amount the actual value of the person or property insured or insurance in a greater amount than the insured can afford
tax deductible
a qualified expense that may reduce the amount of income subject to taxation
taxable
subject to taxation
aggregate
combined;total
authorized insurer
insurer who has received a certificate of authority from the department of insurance to transact insurance in this state
business entity
corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
cease and desist
to stop; discontinue
commission
payment to the agent by the insurance company for placing insurance, usually percentage of the policy premiumm
commissioner
the head of the division of insurance
disclosure
revealed information to help someone make an intelligent and educated decision
exempt
not subject to an obligation
immunity
exemption from a duty or legal obligation or protection against a liability
inducement
an offer that attempts to influence the other party
moral turpitude
conduct that is contrary to community standards of justice, honesty, or good morals
promulgate
to make public, to put into action
(laws, court decrees)
solvency
ability to meet financial obligations
salute
a formal written law enacted by legislature, insurance statutes can be found i the state insurance code
subpoena
an order for someone to appear as a witness or submit testimony or evidence
benefit period
a period of time during which benefits are paid under the policy
enrollee
a person enrolled in a health insurance plan, an insured.
(doesn’t include dependents of the insured)
pre-existing conditions
conditions for which the insured has received a diagnosis, advice care, or treatment during a specific time period prior to the application for health coverage
premium
money paid to the insurance company for the insurance coverage
Social Security Disability insured Status
fully insured or currently insured, depending on the number of coverage credits earned
waiting period
a period of time that must pass after a loss occurs before the insurer start paying policy benefits
dependent
someone relying on the insured for support
nonrenew
terminate an insurance policy at its expiration date
PPACA (Patient Protection and Affordable Care Act)
a federal law that mandated health care services for all eligible U.S. citizen and nationals
solicitation
an attempt to persuade a person to buy an insurance policy, and it can be orally or in writting
suitability
a requirement to determine if an insurance product is appropriate for a customer
warranty
Absolutely true statement upon which the validity of the insurance policy depends
Representations
statements believed to be true to the best of ones knowledge
