Glossary for Life, Health and Accident Insurance exam
What is Absolute Assignment?
The assignment by a policy owner of all rights and control int he policy to a third party.
What is Accelerated Death Benefit?
A life insurance policy that allows for the pre-payment of the death benefit in the event that the insured is suffering from a terminal illness and has a life expectancy of less than 12-24 months. The policy owner may accelerate the entire death benefit or a percentage (for example, 80%) depending on the needs.
What is Accelerated Living benefits?
A life insurance policy rider that allow for prepayment of the death benefit in the form of a monthly benefit in the event the insured requires skilled nursing care.
What is Accidental Death and Dismemberment?
A policy or rider that pays a benefit in the event the insured dies or loses limbs or body parts (or their use) as the result of an accident. The death benefit, known as the PRINCIPAL SUM, is only paid if the death was due to an accident and occurs within a certain time period after the accident. Dismemberment benefits, known as the CAPITAL SUM, are paid based on the limbs or body pars lost.
What is Accidental Injure?
An injury that was not caused intentionally.
What is Accumulation Period?
The period of time wherein the annuity builds up its value, through premium payments and interest earnings
What is Activity of Daily Living?
Everyday, routine, physical activities conducted by an individual. These activities are: eating, bathing, dressing, toileting, continence, and transfering (going from bed to the bathroom and back.
What is Additional Monthly Benefit Rider?
It is a short-term rider added to a disability income policy to provide additional benefits during the first 6 to 12 months of a disabitliy claim. These benefits usually coincide with the waiting periods for SOCIAL SECURITY DISABILITY INCOME and other goverment benefits.
What is Adhesion?
An insurance contract characteristic in which the insurer creates the unilateral contract and the insured either accepts or rejects it.
What is Adjustable Life?
A type of life insurance policy which allows the policy owner to change the death benefits, amount or premium, period of pretection, and length of the premiem payment period.
What is Administrative Services Only Contract (ASO)?
An arrangement with a third party provider, typically an insurance company, to administer claims for employers that self-fund benefits. The employer pays the claims, the ASO provider provides services
What is an Admitted Insurer?
An insurer licensed and authorized to do business in a state
What is Adverse Selection?
The tendency of people who are poor insurance risks to purchase and maitain insurance coverage
What is the ADEA ( Age Discrimination in Employment Act)?
A federal law that prohibits discrimination againts anayone over the age 40 in emergency treatments
A person or persons who are designated to receive benefits in an insurance policy