Term
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Definition
| assignment by a policyowner of all control and rights in the policy to a third party |
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Term
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Definition
| riders on life insurance policies that allow the life insurance policy's death benefits to be used to offset expenses incurred in a convalescent or nursing home facility |
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Term
| accidental death and dismemberment |
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Definition
| a policy or provision in a disability income policy that pays either a specified amount or a multiple of the weekly disability benefit if the insured dies, loses his or her sight, or loses two limbs as the result of an accident |
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Term
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Definition
| wording in certain accident policies that restricts recovery to loss for bodily injury that is both unexpected and unintended |
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Term
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Definition
| expenses incurred by an insurer that are directly related to putting the business on the books of the company. the largest portion of this cost is usually the agent's or sales representative's commission or bonus |
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Term
| Activities of Daily Living(ADL) |
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Definition
| everyday living functions and activities performed by individuals without assistance. These functions include mobility, bathing, dressing, personal hygiene, and eating |
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Term
| additional monthly benefit |
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Definition
| riders added to disability income policies to provide additional benefits during the first year of a claim while the insured is waiting for social security benefits to begin |
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Term
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Definition
| term used to describe certain contracts. Insurance policies are contracts of adhesion because the terms are drawn up by the insurer and the insured simply "adheres". For this reason ambiguous provisions are often interpreted by courts in favor of the insured. |
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Term
| Administrative services only |
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Definition
| an arrangement with an insurance company to administer a self-insured fund or multiple employer trust. The insurer provides only its services, not insurance coverage. |
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Term
| admitted or authorized company |
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Definition
| an insurance company authorized and licensed to do business in a given state |
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Term
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Definition
| selection against the insurer in terms of insuring more poor risks than good or average risks; the tendency of more poor risks to buy and maintain insurance than good risks |
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Term
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Definition
| the power vested in an insurance agent so that the actions of the agent are taken to be the actions of the principal, the insurer in this case |
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Term
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Definition
| a contract in which the number of dollars to be given up by each party is not equal. Insurance contracts are of this type because the policyholder pays a premium and may collect nothing from the insurer or may collect a great deal more than the amount of the premium if a loss occurs |
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Term
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Definition
| an insurer organized and domiciled in a country other than the United States |
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Term
| annual (or yearly) renewable term |
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Definition
| term life insurance that may be renewed annually without evidence of insurability until some stated age |
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Term
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Definition
| one who receives an annuity payout |
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Term
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Definition
| an annuity that pays income for a fixed number of years regardless of whether the insured lives or dies |
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Term
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Definition
| authority of an agent that is created when the agent oversteps actual authority, and when inaction by the insurer does nothing to counter the public impression that such authority exists |
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Term
| assessment company, society, or insurer |
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Definition
| an insurer who retains the right to assess policyholders additional amounts if premiums are insufficient for operations |
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Term
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Definition
| (1) transfer of rights in a policy to an individual or entity other than the policyowner. (2) under medicare, agreement by the health care provider to accept medicare's approved amounts as full payment |
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Term
| automatic premium loan provision |
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Definition
| in life insurance, an optional provision that allows the insurer to use, automatically, whatever portion of the cash value is needed to pay premiums as they fall due |
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Term
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Definition
| a person who may become eligible to receive, or is receiving, benefits under an insurance plan other than as an insured |
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Term
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Definition
| a secondary beneficiary designated to receive the proceeds of a policy if the primary beneficiary does not survive the insured |
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Term
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Definition
| a named beneficiary whose status as beneficiary cannot be changed without his or her permission |
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Term
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Definition
| a health insurance contract that covers all of a class of persons who are not individually identified |
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Term
| blue cross and blue shield |
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Definition
| service organizations providing hospital and medical expense coverages under which payments are made directly to the health care providers rather than to the individual. Blue Cross pays hospital expenses; Blue Shield pays physicians' and other medical expenses. |
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Term
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Definition
| an individual who procures insurance or the renewal or continuance of insurance on behalf of prospective insureds. |
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Term
| business overhead expense insurance |
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Definition
| a type of business disability income insurance designed to pay for continuing overhead while an owner or other key person is disabled |
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Term
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Definition
| a life insurance calculation method that factors in only interest earned on principal to generate income for a policyowner after benefits are distributed. (also called capital retenton.) |
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Term
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Definition
| a life insurance calculation method that factors in both interest and principal to generate income for a policyowner after benefits are distributed. (also called capital utilization) |
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Term
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Definition
| a system, under Health Maintenance Organization (HMO)forms of health benefits, whereby physicians receive a monthly payment form the HMO for every member of th eHMO without regard to actual services the physician provides |
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Term
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Definition
| a form of annuity contract that provides if at the death of the annuitant installments paid out have not totaled the amount of the premium paid for the annuity, the difference will be paid to a designated beneficiary in a lump sum |
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Term
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Definition
| an illegal practice wherin insurance agents unnecessarily replace existing life insurance for the purpose of earning additional (higher) first-year commissions |
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Term
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Definition
| in health insurance, an arrangement whereby the insurer and the insured share payment of covered losses in agreed proportions, often 80% for the insurer and 20% for the insured. (also called percentage participation.) |
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Term
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Definition
| an illegal method of marketing insurance policies(often associated with medicare supplement policies.)that fails to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance or other similar coverage, and that further contact will be made by an insurance agent or insurer |
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Term
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Definition
| assignment of a life or health insurance policy as security for a loan or debt, with the creditor to receive the proceeds or values to the extent of the interest assigned |
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Term
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Definition
| an illegal practice that occurs when a producer mixes personal funds with the insured's or insurer's funds |
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Term
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Definition
| the portion of the premium stipulated in the agency contract to be retained by the agent as compensation for sales, service, and distribution of insurance policies |
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Term
| commissioner of insurance |
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Definition
| the title of the head of most state insurance departments. |
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Term
| common disaster provision |
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Definition
| a provision that can be included in a life insurance contract providing that the primary beneficiary must outlive the insured for a specified period of time in order to receive the proceeds. If not, the contingent beneficiary receives the proceeds. |
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Term
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Definition
| the withholding, by an applicant for insurance, of facts that materially affect an insurance risk or loss |
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Term
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Definition
| a receipt that provides that if the premium accompanies the application, the coverage is in fore from the date of application (whether the policy has yet been issued or not), provided the insurer would have issued the coverage on the basis of facts as revealed by the application and other usual sources of underwriting information |
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Term
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Definition
| the exchange of values on which a contract is based. in insurance, the consideration offered by the insured is usually the premium and the statements contained in the application. the consideration offered by the insurer is the promise to pay in accordance with the terms of the contract |
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Term
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Definition
| a provision in an insurance policy setting forth the conditions under which, or the period of time during which, the insurer may contest or void the policy. after that time has lapsed, normally 2 years, the policy cannot be contested. |
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Term
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Definition
| person or persons named to receive benefits if the primary beneficiary is not alive at the time the insured dies |
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Term
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Definition
| life insurance coverage written on the producer's own life, and on the lives of persons such as the producer's relatives and business associates. Many states limit the amount of controlled business may be written, and if the premium or commissions on controlled business exceed a given percentage (usually 50%) of all business, the producer's license may be suspended, revoked, or not renewed. |
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Term
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Definition
| the right of group policyholders or their dependents, if their group coverage should end, to convert to an individual policy without evidence of insurability. |
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Term
| convertible term insurance |
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Definition
| a term policy that can be converted to a permanent type of coverage without proof of insurability |
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Term
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Definition
| the method of determining which company pays as primary insurer and which company pays as secondary or excess insurer when a secondary or excess insurer when a working couple or their dependents have a claim covered by more than one group insurance contract |
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Term
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Definition
| under medicare, any amount, other than deductibles, that the recipient must pay for medicare to pay the greater share. In an HMO, it is any nominal use charge the subscriber is required to pay for services in addition to the prepaid amounts.(also called coinsurance) |
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Term
| cost of living adjustment rider |
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Definition
| a rider that may be attached to policies adjusting the benefits based upon a formula tied to inflationary or deflationary trends. |
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Term
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Definition
| care that is primarily for meeting personal needs such as help in the activities of daily living(bathing, dressing, eating, and so forth). it can be provided by someone without professional medical skills or training but must be according to doctor's orders |
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Term
| decreasing term insurance |
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Definition
| term insurance for which the initial amount gradually decreases until the expiration date of the policy, at which time it reaches zero |
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Term
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Definition
| the portion of an insured's loss to be borne by the insured before any recovery may be made form the insurer |
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Term
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Definition
| under insurance law an unfair trade practice involving false, maliciously critical or derogatory statements intended to injure a person engaged in the insurance business |
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Term
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Definition
| annuity on which payments to the annuitant are delayed until a specified future date |
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Term
| deferred compensation plan |
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Definition
| a nonqualified arrangement in which compensation is deferred until the employee retires |
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Term
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Definition
| a qualified retirement plan that offers predetermined benefits to plan participants |
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Term
| defined contribution plan |
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Definition
| a qualified retirement plan that is based on contributions to the plan |
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Term
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Definition
| the return of part of the premium paid for a participating policy |
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Term
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Definition
| an insurer formed under the laws of the state in which the insurance is written |
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Term
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Definition
| payment of twice the basic benefit in event of loss resulting from specified causes or under specified circumstances |
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Term
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Definition
| a period of time between the onset of a disability and the date benefits begin. |
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Term
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Definition
| technically, a change made directly on the policy form by writing, printing, stamping, or typing and approved by an executive officer of the insurer. In general use, also may refer to a change made by means of a form attached to the policy |
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Term
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Definition
| a provision in an insurance contract stating that the entire agreement between the insured and the insurer is contained in the contract, including the application if it is attached, declarations, insuring agreements, exclusions, conditions, and endorseements |
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Term
| errors and omissions liability |
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Definition
| liability a producer assumes by the fat of doing business, for errors or omissioins he or she may commit in recommending, providing, continuing, or failing to provide or continue the insurance coverage clients require. Producers can protect themselves by purchasing E and O liability coverage. |
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Term
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Definition
| the legal principle that holds that anyone whose words or actions have caused a waiver of a right or privelege cannot later reclaim the waived right or privelege if a third party has relied on it |
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Term
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Definition
| a person named in a will to settle an estate |
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Definition
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Definition
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Term
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Definition
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Term
| fair credit reporting act |
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Definition
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Term
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Definition
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Term
| family maintenence policy |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Definition
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Definition
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Definition
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Definition
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Term
| fraternal benefit societies |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
| guaranteed insurability rider |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
| health maintenance organization |
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Definition
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Term
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Definition
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Term
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Definition
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Term
| hospital income or indemnity policy |
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Definition
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Term
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Definition
| an annuity on which the income payments to the annuitant are to begin almost immediately after a period of time equal to the period between payments has elapsed |
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Term
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Definition
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Term
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Definition
| various rights that may be exercised under the policy contract by the policyowner. Some of the incidents of ownership would be the right to cash in the policy, the right to receive a loan on the cash value of the policy, and the right to change the beneficiary |
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Term
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Definition
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Term
| increasing term insurance |
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Definition
| a term life insurance policy wherein the death benefit increases but the premium remains level for the policy term |
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
| investigative consumer report |
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Definition
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Term
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Definition
| a beneficiary that may not be changed without the beneficiary's permission |
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Term
| joint life and survivorship annuity |
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Definition
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Term
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Definition
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Term
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Definition
| juvenile insurance on which the face amount increases by a multiple, usually five, of the original face amount when the insured reaches age 21 |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| the theory of probability that is the basis of insurance; the larger the number of risks or exposures, the more closely will the actual results obtained approach the probable results expected from an infinite number of exposures |
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| a type of health insurance that provides benefits for most types of medical expenses incurred up to a high maximum limit or provides unlimited lifetime benefits. such contracts may contain internal limits, a coinsurance or percentage participation provision, and a deductible. pays expenses incurred both in and out of the hospital |
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Term
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Definition
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Term
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Definition
| used to measure how insurance companies and insurance producers comply with state laws regulating the sales and marketing, underwriting, and issuance of insurance products. Proper marker conduct means conducting insurance business fairly and responsibly |
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Term
| market-value adjusted annuity |
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Definition
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Term
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Definition
| in insurance, a fact that is so important that the disclosure of it would change the decision of an insurance company, either with respect to writing coverage, settling a loss, or determining a premium. Usually, the misrepresentation of a material fact will void a policy. |
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Term
| medical information bureau |
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Definition
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Term
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Definition
| a govt sponsored health care plan intended primarily for persons age 65 and older who qualify for social security benefits. is available to specified others, some of whom must pay a monthly premium for both part a, which is the basic hospital plan and for which no payment may be required of other persons, and part be, which covers certain non hospital medical expenses and for which all pay a monthly premium |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| options to fill medicare gaps that must usually be paid by a medicare beneficiary. also known as medicare part c |
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Definition
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Term
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Definition
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Term
| modified endowment contract |
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| the relative incidence of disease |
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Term
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Definition
| the charge for the element of pure insurance protection in a life insurance policy. |
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Term
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Definition
| an incorporated insurer without incorporated capital owned by its policyholders |
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Term
| national association of insurance commissions |
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Definition
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Definition
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Term
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Definition
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Term
| nonadmitted insurer or company |
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Definition
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Definition
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Definition
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Definition
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Definition
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Definition
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| one-year term dividend option |
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Definition
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Definition
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Definition
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Definition
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| overhead expense insurance |
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Definition
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Definition
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