401k plan
A qualified retirement plan in which the
employee can set aside a portion of their income
with pre-tax dollars.<\/p>\n\n\n\n
Absolute Assignment
A permanent and irrevocable transfer
of rights and\/or benefits by the policy owner.<\/p>\n\n\n\n
Collateral Assignment
A temporary and\/or revocable transfer
of benefits by the policy owner.<\/p>\n\n\n\n
Accelerated Death Benefit
Policy provision that allows full or partial
payment of the policy’s death benefit before the
insured’s death if he\/she is terminally ill.<\/p>\n\n\n\n
Accidental Death Benefit
An extra cost rider that requires the insurance
company to pay an additional benefit in the event
that the insured dies within 90 days of an
accident as a direct result of the accident.<\/p>\n\n\n\n
Accumulate at Interest
The Dividend Option where the policy owner
leaves the dividends with the insurer to invest
and earn interest.<\/p>\n\n\n\n
Adhesion
Since the insurer created all the documents of
the contract, any ambiguities in the contract will
be settled in favor of the insured. Since the
insurer wrote the contract they are stuck with it.<\/p>\n\n\n\n
Adverse Selection
The tendency for less favorable risks to seek or
continue insurance to a greater extent than more
favorable risks.<\/p>\n\n\n\n
Agency Agreement or Agency Contract
A legal document containing the terms of the
agreement between the agent and the insurance
company. It clearly defines what an agent can
and cannot do, and how he\/she will be
compensated.<\/p>\n\n\n\n
Agent Authorities
Expressed: Power or authority specifically
granted in writing to an agent by the insurance
company in their Agency Agreement. Apparent:
Power or authority that the public reasonably
assumes an agent has based upon his\/her
actions. Implied: Power or authority that is not
expressly granted by the company but that an
agent can assume or that are implied he\/she has
in order to transact insurance business.<\/p>\n\n\n\n
Agent\/Producer
Anyone who sells or aids in the selling of
insurance. Legally represents the company.<\/p>\n\n\n\n
Agent’s Report
A written report from the agent submitted to the
insurer along with the application disclosing what
the agent knows, observed, or learned about the
proposed insured’s risks.<\/p>\n\n\n\n
Aleatory
Unequal exchange of value. One party may
obtain a far greater value than the other under
the contract.<\/p>\n\n\n\n
Annual Renewable Term
A Term Life Insurance contract which gives the
policy owner the option to renew the policy each
year without showing proof of insurability.
Premiums increase at each renewal.<\/p>\n\n\n\n
Annuitant
The person that buys an annuity; may or may not
be an annuity’s policy owner.<\/p>\n\n\n\n
Annuity
A contract\/policy that guarantees to pay income
for a specified period of time or for the life of the
annuitant. Designed to prevent people from
outliving their savings.<\/p>\n\n\n\n
Appointment
Authorization of an agent\/producer by an insurer
to represent the company.<\/p>\n\n\n\n
Blackout Period
The period of time between the youngest child
turning 16 and the widow(er) reaching retirement
age during which no Social Security Survivor
Benefits are paid to the surviving spouse.<\/p>\n\n\n\n
Buy-Sell Agreement
Business use of Life Insurance where partners in
a business buy life insurance on each other.
They agree that when one of them dies the
survivors have the right to purchase the
deceased partner’s share of the business. The
death benefit from the insurance is used to
finance the purchase.<\/p>\n\n\n\n
Cash Nonforfeiture Option
Policyowner receives a lump-sum payment of
the current cash value of the policy upon
surrender of the policy. The policy cannot be
reinstated.<\/p>\n\n\n\n
Cash Settlement Option
Upon maturity of an insurance policy the
beneficiary receives a lump-sum payment of the
entire policy proceeds due.<\/p>\n\n\n\n
Cash Value
That part of an insurance policy that is the equity
amount legally available to the policy owner. The
cash value accumulates throughout the duration
of the policy. Also known as living benefit or
policy savings.<\/p>\n\n\n\n
Commissioner
Public official in charge of the state’s department
of insurance. Charged with regulating the
insurance industry in his\/her state by enforcing
the insurance laws.<\/p>\n\n\n\n
Conditional
Certain conditions must be met in order for policy
to pay-out.<\/p>\n\n\n\n
Conditional Receipt
An interim insuring agreement under which the
insurance company agrees to start coverage on
the later of either the date of application or the
date of the medical exam IF the proposed
insured is found to be insurable on that date.<\/p>\n\n\n\n
Consideration
A necessary element of a contract; something of
value exchanged for the transfer of risk.
Insured’s consideration is payment of premiums
and truthful statements on the application.
Insurer’s consideration is promises contained in
the contract.<\/p>\n\n\n\n
Contingent Beneficiary
An alternate beneficiary designated to receive
the policy proceeds in the event that the primary
beneficiary dies before the insured.<\/p>\n\n\n\n
Contributory Plan
Group insurance plan under which
the employees contribute to the payment of
premiums.<\/p>\n\n\n\n
Noncontributory Plan
A group insurance
plan in which the employer pays all the
premiums for the policy.<\/p>\n\n\n\n
Convertible Term
Term insurance that specifically permits
“conversion” of the policy into permanent
protection without proof of insurability.<\/p>\n\n\n\n
Decreasing Term
Term life insurance in which the face amount of
the policy decreases over time in scheduled
steps. Most often used to cover a debt obligation
(mortgage).<\/p>\n\n\n\n
Dividends
Distributions paid out by insurance companies.
Stock insurers pay dividends (portion of profit) to
stockholders and they are taxable. Mutual
insurers pay dividends (return of unneeded
premiums) to policyowners and they are not
taxable. Dividends are never guaranteed.<\/p>\n\n\n\n
Equity Indexed Annuity
The annuity that has a guaranteed minimum
interest rate and allows the annuitant to invest
money in an index (i.e.: S&P 500). The
investments grow as the index grows.<\/p>\n\n\n\n
Estoppel
Legally preventing someone from asserting or reasserting a known right that they have previously
waived.<\/p>\n\n\n\n
Extended Term Insurance
Nonforfeiture option where cash value is used to
make a single premium payment on a Term
Insurance Policy of the same face amount as the
original policy. Original policy can be reinstated.
Not available on rated policies.<\/p>\n\n\n\n
Face Amount
Amount payable in the event of death of the
insured. Also called face value, death benefit,
policy proceeds, coverage, stated amount,
indemnity amount or proceeds to the beneficiary.<\/p>\n\n\n\n
Facultative Reinsurance
Transferring risk from one insurance
company to another on a policy-by-policy basis.<\/p>\n\n\n\n
Treaty Reinsurance
Transferring risk from one insurance
company to another under a blanket agreement.<\/p>\n\n\n\n
Fair Credit Reporting Act
A federal law that protects consumers in regard
to their credit history. Establishes guidelines for
how companies can access consumers’ credit
reports and what types of disclosures and
notifications are required.<\/p>\n\n\n\n
Financial Needs Approach
In determining how much life insurance is
needed the needs of the surviving family are the
focus. Using needs analysis worksheets, an
amount is determined to meet the needs of the
surviving family regardless of the earnings of the
insured.<\/p>\n\n\n\n
Fixed Amount Annuity
A Life Annuity that guarantees a fixed dollar
payment at regular intervals during the lifetime of
the annuitant.<\/p>\n\n\n\n
Fixed Amount Settlement Option
Upon maturity of an insurance policy the
beneficiary receives periodic payments of a set
dollar amount from the policy proceeds.<\/p>\n","protected":false},"excerpt":{"rendered":"
401k planA qualified retirement plan in which theemployee can set aside a portion of their incomewith pre-tax dollars. Absolute AssignmentA permanent and irrevocable transferof rights and\/or benefits by the policy owner. Collateral AssignmentA temporary and\/or revocable transferof benefits by the policy owner. Accelerated Death BenefitPolicy provision that allows full or partialpayment of the policy’s death […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[],"tags":[],"class_list":["post-110615","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/110615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=110615"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/110615\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=110615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=110615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=110615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}