Life and Health Insurance - Ohio Licensing Exam Verified 100%

Absolute Assignment - ANSWER The assignment by the policy owner of all control and rights to a third party. This differs from collateral assignment, which allows all the rights and control to revert to the owner once a loan is paid off Accident - ANSWER A fortuitous event; unforeseen and unintended Accidental Death Insurance - ANSWER A form of health insurance that provides payment if death of the insured results from accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental death and dismemberment (AD&D) Accident and Sickness - ANSWER Insurance against bodily injury, disability, or death by accident or accidental means, or expense thereof, or against disability or expense resulting from sickness and the insurance relating thereto Accident means - ANSWER The unexpected cause of an accidental bodily injury. Under an accidental means definition, the mishap itself must be accidental. If a person does something to contribute to the accident, the claim would not be paid under this restrictive definition Accelerated benefit - ANSWER Available only if the benefits are available during the insured's lifetime, benefit amounts are fixed when accelerated, and the benefits, when paid, reduces the death benefit Accumulation at interest option - ANSWER A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only). Actuary - ANSWER Once concerned with the application of probability and statistical theory to insurance. This person sets expenses, and interest assumptions. ADB - ANSWER Accidental death benefit, also known as double indemnity. There is another variation called triple indemnity. AD&D - ANSWER Accidental death and dismemberment insurance. Administrator - ANSWER The person appointed by a court to settle a deceased's estate, sometimes called and executor. Adverse selection - ANSWER Selection against the insurance company. The tendency of poorer risks to want insurance more often than standard risks. Agent - ANSWER The individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance contracts on its behalf. Aleatory - ANSWER Something that depends upon chance or is random. It is derived from the Latin idea of "rolling the dice." Alea