Term
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Definition
| Riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses. |
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Term
| Accidental Death Benefits |
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Definition
| A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death. |
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Term
| Accidental Death Insurance |
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Definition
| An insurance policy that provides payment if the insured's death is the result of an accident. |
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Term
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Definition
| The time before an annuitant's retirement during which the annuitant is making payments or investments in an annuity. |
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Term
| Acquired Immunodeficiency Syndrome |
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Definition
| An infectious and incurable disease caused by the human immunodeficiency virus (HIV) |
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Term
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Definition
| The required amount to pay damages for property loss. This amount is calculated based on the property's current replacement value minus depreciation. |
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Term
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Definition
| A person trained in the technical aspects o insurance and related fields, particularly in the mathematics of insurance; a person who, on behalf of the company, determines the mathematical probability of loss. |
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Term
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Definition
| A contract offed on a 'take it or leave it' basis by an insurer, in which the insureds only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. |
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Term
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Definition
| Life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period. |
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Term
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Definition
| A representative of an insurance company who investigates and acts on behalf of the company to obtain agreements for the amount of the insurance claim. |
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Term
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Definition
| An individual appointed by a court as a fiduciary to settle the financial affairs and estate if a deceased person. |
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Term
| Admitted (Authorized) Insurer |
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Definition
| An insurance company authorized and licensed to transact business in particular state. |
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Term
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Definition
| A program for impaired adults that attempts to meet their health, social, and functional needs in a setting away from their homes. |
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Term
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Definition
| The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. |
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Term
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Definition
| An insurance sales office or company |
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Term
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Definition
| An individual who is licensed to sell, negotiate or effect insurance contracts on behalf of the insurer |
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Term
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Definition
| Special powers granted to an agent by his or her agency contract. |
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Term
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Definition
| A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss. |
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Term
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Definition
| An insurance company that is incorporated outside of the United States. |
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Term
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Definition
| A disease that causes the victim to become dysfunctional due to degeneration of brain cells and severe memory loss. |
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Term
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Definition
| A detailed financial report an insurance company must submit every year to the insurance department of state(s) in which it conducts business. |
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Term
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Definition
A contract that provides income for a specified period of years, or for life.
An annuity is not a type of insurance. |
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Term
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Definition
| The appearance or the assumption of authority based on actions, words, or deeds of the principal or because the circumstances the principal created. |
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Term
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Definition
| A person making application for, or offering him/herself or another to be insured under the same contract. |
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Term
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Definition
| A document that provides information for underwriting purposes. After the policy is issued, and unanswered questions are considered waived by the insurer. |
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Term
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Definition
| The transfer of ownership rights of a life insurance policy from one person to another. |
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Term
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Definition
| The age of the insured at a determined date. |
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Term
| Attending Physician's Statement (APS) |
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Definition
| A statement usually obtained from the applicant's doctor. |
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Term
| Authorized (Admitted) Insurer |
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Definition
| An insurance company authorized and licensed to transact business in a particular state. |
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Term
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Definition
| A method of dealing with risk by deliberatley keep away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane. |
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Term
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Definition
| A ledger or proposal used in the sale of a life insurance policy that shows both guarunteed and non guarunteed elements. |
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Term
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Definition
| The person who recieves the proceeds from the policy when the insured dies. |
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Term
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Definition
| A temporary contract that puts an insurance policy into force before the premium has been paid. |
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Term
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Definition
| The method of determining primary coverage for a dependant child, under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary. |
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Term
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Definition
| An individual who represents an insured in the process of purchasing and negotiating a contract of insurance. |
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Term
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Definition
| A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. |
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Term
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Definition
| A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. |
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Term
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Definition
The amount to which a policyowner is entitled if the policy is surrendered before maturity.
Premium payments usually consist of two parts:
1) The actual cost of the insurance policy
2) The part that is left over goes towards the cash value
Ex $110 (Premium) - $70 (Cost of Insurance) = $40 (Cash Value) |
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Term
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Definition
| A statement or booklet that confirms that policy has been written and that describes the coverage in general. |
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Term
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Definition
| A document that authorizes a company to start conducting business and specifies the kind(s) of insurance a company can transact. It is illegal for an insurance company to transact insurance without a certificate. |
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Term
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Definition
| A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. |
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Term
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Definition
| A request for payment of the benefits provided by an insurance contract. |
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Term
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Definition
| An unfair trade practice in which an agent uses physical or mental force with the intent of inducing an applicant to purchase insurance. |
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Term
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Definition
| A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance. |
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Term
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Definition
| A practice in which a person is a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in a trust. |
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Term
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Definition
| The payment made by insurers to agents or brokers for the sale and service of policies. |
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Term
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Definition
| The chief executive and administrative officer of a state insurance department. |
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Term
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Definition
| The withholding of known facts which, if material, can void a contract. |
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Term
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Definition
| A type of an agreement in which both parties must preform certain duties and follow rules of conduct to make the contract enforceable. |
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Term
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Definition
| The binding force in a contract that requires something of value to be exchanged for the transfer of risk. The consideration on the part of the insured of the insured is the representations made in the application and the payment of premium; the consideration on the part of the insurer is the promise to pay in the event of a loss. |
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Term
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Definition
| A written and/ or oral statement regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources. |
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Term
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Definition
| An agreement between two or more parties enforceable by law. |
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Term
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Definition
| A group insurance plan that requires the employees to part part of a premium |
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Term
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Definition
| An entity that obtains an possesses a license solely for the purpose of writing business on the owner, immediate family, relatives, employer or employees. |
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Term
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Definition
| A policy that may be exchanged for another type of policy by contractual provision, at the option of the policy-owner, and without evidence of insurability (i.e. term life changed to a form of permanent life) |
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Term
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Definition
| A provision that helps determine the primary provider in situations where an insured is covered by more than one policy, thus avoiding claims over-payments. |
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Term
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Definition
| The act of signing an insurance policy by a licensed resident agent. |
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Term
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Definition
| The inclusion of causes of loss (perils) which are covered within a scope of a policy. |
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Term
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Definition
| A special type of coverage written to pay off the balance of a loan in the event of a death of the debtor. |
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Term
| CSO Table (The Commissioner's Standard Ordinary Table) |
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Definition
| A Morality table used in life insurance that mathematically predicts the likelihood of death. |
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Term
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Definition
| Care that is rendered to help an insured complete his/her activities of daily living. |
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Term
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Definition
| The amount payable upon death of the person whose life is insured. |
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Term
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Definition
A type of life insurance that features a level premium and a dethat benefit that decreases each year over a duration of the policy.
Decreasing Term Life Insurance has the cheapest premiums. |
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Term
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Definition
| An unfair practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation. |
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Term
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Definition
| A person who relies on another for support and maintenance. |
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Term
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Definition
| The chief executive and adminstrative officer of the Insurance Department |
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Term
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Definition
| An act of identifying the name of the producer, representative or firm, limited insurance representative, or temporary insurance producer on any policy situation. |
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Term
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Definition
| An insurance company that conducts business in the state of incorporation. |
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Term
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Definition
| Insurer's location of incorporation and the legal ability to write business in a state. |
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Term
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Definition
| The amount of the premium for which the policy protection has been given. |
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Term
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Definition
| The date when an insurance policy begins (also known as the inception date). |
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Term
| Employee Retirement Income Security Act (ERISA) |
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Definition
| The act that stipulates federal standards for private pension plans. |
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Term
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Definition
| A form changing the provisions of and attached to a life insurance policy (also known as a rider). |
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Term
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Definition
| To reach the maturity date or time at which the face amount equals cash values. |
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Term
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Definition
| A legal impediment to denying a fact or restoring a right that has been previously waived. |
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Term
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Definition
| Insurance that pays over and above or in addition to basic policy limits. |
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Term
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Definition
| Causes of loss, exposures, conditions, ect. Listed in the policy for which the benefits will not be paid. |
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Term
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Definition
| A contract which has not yet been fulfilled by one or both parties that promises action in the even of a specified future occurrence. |
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Term
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Definition
| The authority granted to an agent by means of the agent's written contract. |
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Term
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Definition
| The date specified in the policy as the date of termination. |
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Term
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Definition
| A provision that allows coverage to continue beyond the policy's expiration date for employees who are not actively at work due to disability or who have dependents hospitalized on that date. This coverage continues only until the employee returns to work or the dependent leaves the hospital. |
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Term
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Definition
| The first page of a policy. |
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Term
| Fair Credit Reporting Act |
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Definition
| A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used. |
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Term
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Definition
| An agent/ broker who handles insurer's funds in a trust capacity. |
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Term
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Definition
| An annuity that offers fixed payments and guarantees a minimum interest rate to be credited to the purchase payment or payments. |
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Term
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Definition
| A policy feature that allows the policyholder to vary premium payments in the amount and/or timing. |
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Term
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Definition
| An insurance company that is incorporated in another state. |
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Term
| Fraternal Benefit Societies |
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Definition
| Life or health insurance companies formed to provide insurance for members of an affiliate lodge, religious organization, or fraternal organization with a representative form of government. |
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Term
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Definition
| Intentional misrepresentation or deciet with the intent to induce a person to part with something of value. |
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Term
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Definition
| A period of time, usually required by law during which a policy owner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of the premium. |
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Term
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Definition
| Period of time after the premium due date during which premiums may still be paid, and the policy and its riders remain in force. |
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Term
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Definition
| Life insurance provided fo members of a group. |
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Term
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Definition
| A circumstance that increases the likelihood of a loss. |
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Term
| Hazard, Morale (Morale Hazard) |
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Definition
| The effect of a person's indifference concerning loss has on the risk to be insured. |
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Term
| Hazard, Physical (Physical Hazard) |
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Definition
| A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth. |
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