Card Set Information

2013-05-20 15:58:48
Cram book

Show Answers:

  1. Annuity -
    A living benefit designed to protect against outliving ones resources by making periodic payments from an account.
  2. Application -
    Request form for insurance signed by agent & insured and becomes part of the policy, if accepted.
  3. Rider -
    a supplemental form/endorsement to change, add or modify a policy.
  4. Deductibles -
    Portion the insured pays before the company.
  5. Elements of a Contract - 4 elements
    Offer & Acceptance, Competent Parties, Legal Purpose and Consideration
  6. Contract of Adhesion -
    Insured has no say in the contract wording, only accepts or rejects it.
  7. Aleatory -
    Values exchanged may not be equal.
  8. Unilateral -
    Premium for a Promise. Insurer is the only one that cannot cancel without just cause.
  9. Conditional -
    Must meet all conditions before a claim is paid.
  10. Personal -
    Cannot transfer. Between company and insured.
  11. Utmost Good Faith -
    Honest information on both parties; to their best belief and knowledge.
  12. Insurance Policy -
    Written instrument where one undertakes to indemnify another.
  13. Parts of a Life Application / Policy -
    • Application:
    • Part 1 - General Information
    • Part 2 - Medical Information
    • Part 3 - Agent’s Report
    • Policy - Title Page/Data Page/Face Page, Riders,
    • Conditions/Clauses, Original Application
  14. Rescission -
    Void of a contract
  15. E & O -
    Professional Liability coverage for those who give advice for a fee.
  16. Free Insurance -
    Not permissible as an incentive to purchase another product.
  17. Discontinuance –
    termination of an entire group plan
  18. Extension of Benefits -
    Continuation of coverage for a totally disabled person affected before the discontinuation of coverage.