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Details Title: Texas Life and Health Description: Life Policy Provisions, Options, and Riders Total Flash Cards: 36 Created: 08/06/2004 15:03:03	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term policy;copy of the application Definition The entire contract consists of the ________________and a ______________________. Term insuring Definition The _____________ clause is the basic agreement between the insured and the insurer. Term free look; 10 Definition The _______________ provision allows the policyowner ________________ days to look over the policy and return it if dissatisfied. Term consideration Definition Something of value provided by both the insurance company and the policyowner is called _________________. Term policy owner Definition Ownership rights rest with the __________________. Term absolute; collateral Definition There are two types of assignment: ________________ and ____________________________ Term primary; secondary; teriary; contingent Definition The first beneficiary is the _____________________, the next is the _________________ and third is the ______________ . All beneficiaries after the first in line are known as ______________________. Term revokable;irrevokable Definition Beneficiaries are named either on a ________________ or __________________ basis. Term first Definition Under the Uniform Simultaneous Death Law, the law assumes that the primary beneficiary dies ____________ in a common disaster. Term frequency; annual; semannually; quarterly; monthly Definition The mode is the _______________ of the policy premium payment. The four acceptable payment modes are 1) _______________, 2) ___________, 3) _____________,and 4) _______________. Term grace period; 30 to 31 Definition The period of time after the premium due date that the policyowner has to pay the premium before the policy lapses is the ____________________. This period of time is usually _____________ days. Term reinstatement; insurability; past due payments; loans Definition The __________________ provision allows the policyowner to put a policy that has lapsed back in force providing they prove ______________________, pay all ___________________________ plus interest and repay any outstanding _____________ and interest. Term incontestibility; 2 year Definition The ________________ clause prevents the company from denying a claim due to statements on the application after the policy has been in force for _____________. Term misstatement of age Definition The _____________________ provision allows the insurance company to adjust the policy's face amount at any time due to this error. Term policy loan; outstanding loan; interest Definition If the policy has cash value, the insured may make a ____________ against the amount available. If not repaid, the company will deduct the _____________________ plus any __________________ from the face amount upon the insured's death. Term automatic premium loan Definition The __________________ provision prevents the unintentional lapse of a policy due to nonpayment of the premium. Term exclusions Definition ____________________ are policy provisions that exclude certain types of risk. Term suicide clause Definition The ___________________ limits the death benefit to a refund of premium paid if this occurs within the first two years. Term waiver of premium; 6 month; total disability Definition The ______________________ rider waives the premium for the policy if the insured becomes totally disabled. Most companies impose a _________________ waiting period, and you must meet their definition of ___________________. Term guaranteed insurability Definition 20. The _____________________ rider allows the insured to purchase additional amounts of insurance at specified future dates or events without evidence of insurability. Term accidental death rider; 90 days Definition The __________________ will pay some multiple of the face amount if death is the result of an accident as defined in the policy. Death must usually occur within ______________ of such accident. Term principal; capital Definition The Accidental Death and Dismemberment Rider (AD&D) pays the _________________ for accidental death or loss of any two primary parts and the _________________ for the loss of any one primary part. Term Accelerated Death Benefits Definition _____________________ or living riders allow for the early payment of a percentage of the death benefit. Term Nonforfeiture Values Definition ___________________ are guarantees required by state law for insurance policies with cash values. Term cash; reduced paid up; extended term Definition The three nonforfeiture values normally available are ________________, _________________, and __________________. Term Dividends; guaranteed; taxable Definition ______________________ are paid on participating policies. They cannot be ___________ and they are not ________________. Term accumulate at interest; interest Definition With the ______________ dividend option the insured begins a savings account with the insurance company. The _____________ portion would be taxable. Term paid up additions Definition When the policyowner uses the dividend to purchase smaller amounts of the same type of insurance as the original policy, they have utilized the _____________________________ dividend option. Term paid up Definition The _________________ option simply allows the policyowner to pay the policy off sooner than anticipated. Term Settlement Options Definition __________________________ are triggered by the maturity of a life insurance policy or the annuitization of an annuity. Term Life income Definition With the __________________ option, the beneficiary or annuitant would receive income payments for life. Term Life Income with period certain Definition When the annuitant or beneficiary receive income payments for life but also are guaranteed this income for a specific number of years, the ______________________ option was selected. Term Life Income joint and survivor option; last Definition The ___________ pays`out on two or more lives. This option keeps paying until the _______________________person covered. Term Interest only Definition When the insurance company retains the policy proceeds, invests it, and sends the beneficiary or annuitant the growth, the ___________________ option has been selected. Term Fixed Period Definition When the insurance company pays out the policy proceeds to the beneficiary or annuitant over a specified time period, the ____________________ option has been selected. Term Fixed Amount Definition When the insurance company pays out a specified dollar amount until the policy proceeds have been used up, the _____________________ option has been selected.