Cpcu 556 Ch2
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Fully insured status (Under SS)
The status obtained by a worker if he or she has forty quarters of coverage or has a specified minimum number of quarters
Currently insured status (under ss)
Status obtained by a worker if they have at least quarters of coverage during the thirteen quarters ending with their death, eligibility for old age benefits, or disability
Disability insured status (under ss)
The strictest of the 3 types of insured status requirments. workers who are 31 or older when they became disabled must be fully insured and have at least 20 quarters of coverage during the 40 quarter period ending when their disability begins
Guaranteed dollar, or fixed dollar, policy
A life insurance policy for which the insurance company guarantees a cash value and a minimum rate of return and for which the investment decisions and investement risks fall on the insurance company
A life insurance policy in which the periodic payments are set in advance by the insurer based on the insured's age and sex, on whether the insured is a smoker or nonsmoker, and possibility on the insured's preffered risk status
Flexible premium contract
A life insurance policy in which the policy owner can decide, within limits, what, if any, premium to pay in any given year, provided enough enough is paid to keep the policy from lapsing
Term life insurance
Life insurance protection provided for specified period and face amount and which generally has no cash or loan value
Renewable (term life insurance policy)
A term life insurance policy that is renewable for successive time periods at the policy owner's option, without any requirement of evidence of insurability at renewal.
Convertible (term life insurance policy)
The right of a term life policy owner to convert the policy during a specified conversion period into a whole life or another permanent policy of a like or lesser amount of insurance without any requirment of evidence of insurability at the time of conversion
Preffered term (life insurance policy)
A term life insurance policy in which potential insureds are subject to stricter underwriting standards than for other term products, which usually results in condiderably lower rates for prefered term than rates for comparable term insurance that is not considered preferred.
Participating cash-value life insurance
A form of traditional (fixed premium) cash-value life insurance in which the policy pays dividends based on the actual experience of the issuing insurer
Nonparticipating cash-value life insurance
A form of traditional (fixed premium) cash-value life insurance in which the policy pays not dividends
The transfer of all ownership rights in a life insurance contract from one party to another
The transfer of only certain ownership rights in a life insurance contract from one party to another when the policy is to serve as security for a loan
The length of time that a life insurace contract must be in force after which the insurer agrees not to deny a claim because of any error, concealment, or misstatement by the applicant
Regular life insurance issued without requiring the applicant to submit to a medical examination. Amounts of insurance issued vary by age groups, with larger amounts permitted at younger ages.
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