Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

Insurance Terminology and Concepts, Exams of Personal Health

Tarrant County CollegePersonal Health

This comprehensive overview covers various insurance-related terms and concepts, including accidental dismemberment, beneficiary, deductible, employee benefit plans, face amount, guaranteed insurability, and more. It could be useful for students studying insurance-related topics in finance, risk management, and insurance.

Typology: Exams

2024/2025

Available from 09/29/2024

Martin-Ray-1
Martin-Ray-1 🇺🇸

5

(8)

6.1K documents

1 / 84

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Xcel Texas Pre-licensing Education - Life
and Health Insurance
1. Absolute assignment - ✔✔Policy assignment under which the
assignee (person to whom the policy is assigned) receives full control
over the policy and also full rights to its benefits. Generally, when a
policy is assigned to secure a debt, the owner retains all rights in the
policy in excess of the debt, even though the assignment is absolute
in form. (See assignment)
2. Accelerated benefits rider - ✔✔A life insurance rider that allows for
the early payment of some portion of the policies face amount
should the insured suffers from a terminal illness or injury.
3. Acceptance (See offer and acceptance) - ✔✔
4. Accident and health insurance - ✔✔Under which benefits are
payable in case of disease, accidental injury, or accidental death.
Also called health insurance, personal health insurance, and sickness
and accident insurance.
5. Accidental bodily injury provision - ✔✔Disability income or accident
policy provision that requires that the injury be accidental in order
for benefits to be payable.
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16
pf17
pf18
pf19
pf1a
pf1b
pf1c
pf1d
pf1e
pf1f
pf20
pf21
pf22
pf23
pf24
pf25
pf26
pf27
pf28
pf29
pf2a
pf2b
pf2c
pf2d
pf2e
pf2f
pf30
pf31
pf32
pf33
pf34
pf35
pf36
pf37
pf38
pf39
pf3a
pf3b
pf3c
pf3d
pf3e
pf3f
pf40
pf41
pf42
pf43
pf44
pf45
pf46
pf47
pf48
pf49
pf4a
pf4b
pf4c
pf4d
pf4e
pf4f
pf50
pf51
pf52
pf53
pf54

Partial preview of the text

Download Insurance Terminology and Concepts and more Exams Personal Health in PDF only on Docsity!

Xcel Texas Pre-licensing Education - Life

and Health Insurance

  1. Absolute assignment - ✔✔Policy assignment under which the assignee (person to whom the policy is assigned) receives full control over the policy and also full rights to its benefits. Generally, when a policy is assigned to secure a debt, the owner retains all rights in the policy in excess of the debt, even though the assignment is absolute in form. (See assignment)
  2. Accelerated benefits rider - ✔✔A life insurance rider that allows for the early payment of some portion of the policies face amount should the insured suffers from a terminal illness or injury.
  3. Acceptance (See offer and acceptance) - ✔✔
  4. Accident and health insurance - ✔✔Under which benefits are payable in case of disease, accidental injury, or accidental death. Also called health insurance, personal health insurance, and sickness and accident insurance.
  5. Accidental bodily injury provision - ✔✔Disability income or accident policy provision that requires that the injury be accidental in order for benefits to be payable.
  1. Accidental death and dismemberment (AD&D) - ✔✔Insurance providing payment if the insured's death results from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or totally and irreversibly loses eyesight.
  2. Accidental death benefit rider - ✔✔A life insurance policy rider providing for payment of an additional benefit when death occurs by accidental means.
  3. Accidental dismemberment - ✔✔Often defined as "the severance of limbs at or above the wrists or ankle joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be considered dismemberment.
  4. Accidental means provision - ✔✔Unforeseen, unexpected, unintended cause of an accident. Requirement of an accident-based policy that the cause of the mishap must be accidental for any claim to be payable.
  5. Accumulation unit - ✔✔Premiums an annuitant pays into annuities are credited as accumulation units. At the end of the accumulation period, accumulation units are converted to annuity units.
  6. Acquired immune deficiency syndrome (AIDS) - ✔✔A life- threatening condition brought on by the human immunodeficiency
  1. Adult day care - ✔✔Type of care (usually custodial) designed for individuals who require assistance with various activities of daily living, while their primary caregivers are absent. Offered in care centers.
  2. Adverse selection - ✔✔Selection "against the company." Tendency of less favorable insurance risks to seek or continue insurance to a greater extent than others. Also, tendency of policy owners to take advantage of favorable options in insurance contracts.
  3. Advertising Code - ✔✔Rules established by the National Association of Insurance Commissioners (NAIC) to regulate insurance advertising.
  4. Agency - ✔✔Situation wherein one party (an agent) has the power to act for another (the principal) i n dealing with third parties.
  5. Agent - ✔✔Anyone not a duly licensed broker who solicits insurance or aids in placing risks, delivering policies, or collecting premiums on behalf of an insurance company.
  6. Agent's report - ✔✔The section of an insurance application where the agent reports personal observations about the applicant.
  1. Aleatory - ✔✔Feature of insurance contracts in that there is an element of chance for both parties and that the dollar given by the policyholder (premiums) and the insurer (benefits) may not be equal.
  2. Alien Insurer - ✔✔Company incorporated or organized under the laws of any foreign nation, providence, or territory.
  3. Ambulatory surgery - ✔✔Surgery performed on an outpatient basis.
  4. Amount at risk - ✔✔Difference between the face amount of the policy and the reserve or policy value at a given time. In other words, the dollar amount over what the policy owner has contributed of cash value toward payment of the policyowner's own claim. Because the cash value increases every year, the net amount at risk naturally decreases until it finally reaches zero when the cash value or reserve become the face amount.
  5. Annually renewable term (ART) - ✔✔A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew coverage each year without evidence of insurability. Also called yearly renewable term (YRT).
  6. Annuitant - ✔✔One to whom an annuity is payable, or a person upon the continuance of whose life further payment depends.
  1. Appointment - ✔✔Authorization or certification of an agent to act for or represent an insurance company.
  2. Approval receipt - ✔✔Rarely used today, a type of conditional receipt that provides that coverage is effective as of the date the application is approved (before the policy is delivered).
  3. Assessment mutual insurer - ✔✔An insurance company characterized by member-insureds who are assessed an individual portion of each loss that occurs. No premium payment is payable in advance.
  4. Assignee Person (including corporation, partnership, or other organization) to whom a right or rights under a policy are transferred by means of an assignment. - ✔✔
  5. Assignment - ✔✔Signed transfer of benefits of a policy by an insured to another party. The company does not guarantee the validity of an assignment.
  6. Assignment provision (health contracts) - ✔✔Commercial health policy provision that allows the policy owner to assign benefit payments from the insurer directly to the health care provider.
  1. Assignor - ✔✔Person (including corporation, partnership, or other organization or entity) who transfers a right or rights under an insurance policy to another by means of an assignment.
  2. Attained age - ✔✔With reference to an insured, the current insurance age.
  3. Authority - ✔✔The actions and deeds an agent is authorized to conduct on behalf of an insurance company, as specified in the agent's contract.
  4. Authorized company - ✔✔Company duly authorized by the insurance department to operate in the state.
  5. Automatic premium loan provision - ✔✔Authorizes insurer to automatically pay any premium in default at the end of the grace period and charge the amount so paid against the life insurance policy as a policy loan.
  6. Average Indexed Monthly Earnings (AIME) - ✔✔The basis used for calculating the primary insurance amount (PIA) for Social Security benefits.
  7. Average Monthly Wage (AMW) - ✔✔The average wage base for computing virtually all Social Security benefits prior to.
  1. Benefit period - ✔✔Maximum length of time that insurance benefits will be paid for any one accident, illness, or hospital stay.
  2. Best's Insurance Report - ✔✔A guide, published by A.M. Best, Inc., that rates insurers' financial integrity and managerial and operational strengths.
  3. Binding receipt - ✔✔Given by a company upon an applicant's first premium payment. The policy, if approved, becomes effective from the date of the receipt.
  4. Blackout period - ✔✔Period following the death of a family breadwinner during which no Social Security benefits are available to the surviving spouse.
  5. Blanket policy - ✔✔Covers a number of individuals who are exposed to the same hazards, such as members of an athletic team, company officials who are passengers in the same company plane, and so on.
  6. Broker - ✔✔Licensed insurance representative who does not represent a specific company, but places business among various companies. Legally, the broker is usually regarded as a representative of the insured rather than the company.
  1. Business continuation plan - ✔✔Arrangements between the business owners that provide that the shares owned by any one of them who dies or becomes disabled shall be sold to and purchased by the other co-owners or by the business.
  2. Business overhead expense insurance - ✔✔A form of disability income coverage designed to pay necessary business overhead expenses, such as rent, should the insured business owner become disabled.
  3. Buy-sell agreement - ✔✔Agreement that a deceased business owner's interest will be sold and purchased at a predetermined price or at a price according to a predetermined formula.
  4. Buyer's guides - ✔✔Informational consumer guide books that explain insurance policies and insurance concepts; in many states, they are required to be given to applicants when certain types of coverages are being considered.
  5. Cafeteria plan - ✔✔Employee benefit arrangements in which employees can select from a range of benefits.
  6. Cancellable contract - ✔✔Health insurance contract that may be terminated by the company or that is renewable at its option.
  1. Cash surrender option - ✔✔A nonforfeiture option that allows whole life insurance policy owners to receive a payout of their policy's cash values.
  2. Cash surrender value - ✔✔Amount available to the owner when a life insurance policy is surrendered to the company. During the early policy years, the cash value is the reserve less a "surrender charge"; in later policy years, it usually equals or closely approximates the reserve value at time of surrender.
  3. Cash value - ✔✔The equity amount or "savings" accumulation in a whole life policy.
  4. Churning - ✔✔The practice by which policy values in an existing life insurance policy or annuity contract are used to purchase another policy or contract with that same insurer for the purpose of earning additional premiums or commissions without an objectively reasonable basis for believing that the new policy will result in an actual and demonstrable benefit.
  5. Class designation - ✔✔A beneficiary designation. Rather than specifying one or more beneficiaries by name, the policy owner designates a class or group of beneficiaries. For example, "my children."
  6. Classification - ✔✔Occupational category of a risk.
  1. Cleft lip - ✔✔A congenital furrow or groove in the upper lip that results from incomplete embryonic development. This condition may be associated with a cleft palate. Also called a hare lip.
  2. Cleft palate - ✔✔A congenital furrow or groove in the roof of the mouth that results from incomplete embryonic development. This condition may be associated with a cleft lip.
  3. Close corporation - ✔✔A corporation owned by a small group of stockholders, each of whom usually has a voice in operating the business.
  4. COBRA (Consolidated Omnibus Budget Reconciliation Act) - ✔✔Extends group health coverage to terminated employees and their families
  5. Coinsurance (percentage participation) - ✔✔Principle under which the company insures only part of the potential loss, the policyowners paying the other part. For instance, in a major medical policy, the company may agree to pay % of the insured expenses, with the insured to pay the other %.
  6. Collateral assignment - ✔✔Assignment of a policy to a creditor as security for a debt. The creditor is entitled to be reimbursed out of policy proceeds for the amount owed. The beneficiary is entitled to
  1. Competent parties - ✔✔To be enforceable, a contract must be entered into by competent parties. A competent party is one who is capable of understanding the contract being agreed to.
  2. Comprehensive major medical insurance - ✔✔Designed to give the protection offered by both a basic medical expense and major medical policy. It is characterized by a low deductible amount, coinsurance clause, and high maximum benefits.
  3. Concealment - ✔✔Failure of the insured to disclose to the company a fact material to the acceptance of the risk at the time application is made.
  4. Conditional contract - ✔✔Characteristic of an insurance contract in that the payment of benefits is dependent on or a condition of the occurrence of the risk insured against.
  5. Conditional receipt - ✔✔Given to the policy owners when they pay a premium at time of application.Such receipts bind the insurance company if the risk is approved as applied for, subject to any other conditions stated on the receipt.
  6. Conditionally renewable contract - ✔✔Health insurance policy providing that the insured may renew the contract from period to period, or continue it to a stated date or an advanced age, subject to

the right of the insurer to decline renewal only under conditions defined in the contract.

  1. Consideration - ✔✔Element of a binding contract; acceptance by the company of payment of the premium and statements made by the prospective insured in the application.
  2. Consideration clause - ✔✔The part of an insurance contract setting forth the amount of initial and renewal premiums and frequency of future payments. ,
  3. Contestable period - ✔✔Period during which the company may contest a claim on a policy because of misleading or incomplete information in the application.
  4. Contingent beneficiary - ✔✔Person(s) named to receive proceeds in case the original beneficiary is not alive. Also referred to as secondary.
  5. Continuing care - ✔✔Type of health or medical care designed to provide a benefit for elderly individuals who live in a retirement community; addresses fulltime needs, both social and medical. Also known as residential care.
  1. Coordination of benefits (COB) provision - ✔✔Designed to prevent duplication of group insurance benefits. Limits benefits from multiple group health insurance policies in a particular case to % of the expenses covered and designates the order in which the multiple carriers are to pay benefits.
  2. Corridor deductible - ✔✔In superimposed maor medical plans, a deductible amount between the benefits paid by the basic plan and the beginning of the major medical benefits.
  3. Cost of Living (COL) rider - ✔✔A rider available with some policies that provides for a n automatic increase in benefits (typically tied to the Consumer Price Index), offsetting the effects of inflation.
  4. Coverage requirements - ✔✔Standards of coverage that prevent retirement plans from discriminating in favor of highly compensated employees. A plan must pass a n IRS coverage test to be considered qualified.
  5. Credit accident and health insurance - ✔✔If the insured debtor becomes totally disabled due to an accident or sickness, the policy premiums are paid during the period of disability or the loan is paid off. May be individual or group policy.
  6. Credit life insurance - ✔✔Usually written as decreasing term on a relatively small decreasing balance installment loan that may reflect

direct borrowing or a balance due for merchandise purchased. If borrower dies, benefits pay balance due. May be individual or group policy.

  1. Credit report - ✔✔A summary of an insurance applicant's credit history, made by a n independent organization that has investigated the applicant's credit standing.
  2. Cross-purchase plan - ✔✔An agreement that provides that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals.
  3. Currently insured - ✔✔Under Social Security, a status of limited eligibility that provides only death benefits.
  4. Custodial care - ✔✔Level of health or medical care given to meet daily personal needs, such as dressing, bathing, getting out of bed, and so on. Though it does not require medical training, it must be administered under a physician's order.
  5. Death rate - ✔✔Proportion of persons in each age group who die within a year; usually expressed as so many deaths per thousand persons. (See expected mortality)