Life and Health Insurance - Ohio Licensing Exam
Absolute Assignment - ANS -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
\Accelerated benefit - ANS -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
\Accident - ANS -A fortuitous event; unforeseen and unintended
\Accident and Sickness - ANS -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 - ANS -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
\Accidental Death Insurance - ANS -A form of health insurance that provides payment if death of the insured results from
an accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental
death and dismemberment (AD&D)
\Accumulation at interest option - ANS -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 - ANS -Once concerned with the application of probability and statistical theory to insurance. This person sets
expenses, and interest assumptions.
\AD&D - ANS -Accidental death and dismemberment insurance.
\ADB - ANS -Accidental death benefit, also known as double indemnity. There is another variation called triple indemnity.
\Administrator - ANS -The person appointed by a court to settle a deceased's estate, sometimes called and executor.
\Adverse selection - ANS -Selection against the insurance company. The tendency of poorer risks to want insurance more
often than standard risks.
\Agent - ANS -The individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance
contracts on its behalf.
\Aleatory - ANS -Something that depends upon chance or is random. It is derived from the Latin idea of "rolling the dice."
,\Aleatory contract - ANS -A contract in which both parties know that one or the other may receive more than paid in. This
payment is dependent upon a fortuitous event. For example. a person pays the premium for a term policy for many years
and does not die, thus, a claim is never filed.
\Alien company - ANS -An insured organized and domiciled in a country other than the United States
\Annuitant - ANS -The one receiving the Annuity and on whose life expectancy the rates are figured.
\Annuity - ANS -1. An amount of money, payable monthly or yearly, which liquidates a financial asset. 2. An agreement by
an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period.
Annuities are also accumulations vehicles that function much like savings accounts.
\Applicant - ANS -The party making application to the insurance company for the policy
\Application - ANS -A form on which the prospective insured states facts requested by the insurer and on the basis of
which the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk.
\Assignee - ANS -The person to whom policy rights are assigned in whole or in part by the policy owner.
\Assignment - ANS -The transfer of rights in a policy to someone other than the policy owner.
\Attained age - ANS -The present age of the insured. This is a factor when a person converts term insurance to whole life
insurance or buys added disability under a GIR provision
\Attorney-in-fact - ANS -A person to whom authorization is given by an individual to exchange insurance with other
persons. Always present in a reciprocal insurance company.
\Authorized company - ANS -An insurer permitted to sell insurance within a state, evidenced by a certificate of authority
from the insurance commissioner, also called ADMITTED
\Automatic premium loan - ANS -A provision in a life policy authorizing the insurance company to use the loan value to
pay premiums not paid by the end of the grace period. May be present in whole life or other traditional cash value policies
only, but never in term policies
\Aviation clause - ANS -Limits or excludes coverage when the insured is participating in specified types of air travel, cush
as private planes. Coverage is usually fully in force for people on regularly scheduled commercial flights. The limit or
exclusion often applies to student pilots
\Beneficiary - ANS -A person who may become eligible to receive, or is receiving, benefits under an insurance plan, other
than as a participant.
\Blanket Insurance Contract - ANS -A contract of Health Insurance that covers all of a class of persons not individually
identified. No certificates are issued and people covered may not be aware that the coverage is in place.
, \Blue Plan - ANS -The generic term for those insurers (usually on a service rather than a reimbursement bases) who are
authorized to use the designation Blue Cross or Blue Shield and the insignia of either.
\Broker - ANS -One who represents an insured in the solicitation, negotiation, or procurement of contracts of insurance,
functions. This person is also called an independent agent.
\Business Insurance - ANS -Life or Health insurance written to vober business situations, such as key person, sole
proprietor, partnership, corporations, ect.
\Cancelable - ANS -A contract of Insurance that may be terminated by the insurance company or insured at any time.
Virtually every form of insurance is cancelable except Life insurance and those health policies designated as guaranteed
renewable, or non-cancelable and guaranteed renewable.
\Cancellation - ANS -The termination of a contract of insurance in force by voluntary act of the insurance company or
insured, effected in accordance with provisions in the contract or by mutual agreement.
\Capital Sum - ANS -The maximum amount payable in one sum in the event of accidental dismemberment. It is typically
half of the face amount of principal sum.
\Cash Surrender Value - ANS -The value reposing in a policy that is the legal property of the policy owner and that may be
expected should the policy be surrendered for cash. Synonymous with cash value.
\Certificate - ANS -A statement Evidencing that a policy has been written and stating the coverage in general. Often used
with group coverage.
\Claim - ANS -A demand for payment under the insurance policy.
\Classification - ANS -The grouping of persons for the purpose of determining an underwriting or rating group into which a
particular risk must be placed.
\Co-Insurance - ANS -In Health Insurance, a provision that the insured and insurance company will share covered losses
in agreed proportion.
\Collateral Assignment - ANS -The assignment of part of the proceeds of an insurance policy to a bank as collateral to
settle the loan balance that may exist at the insured's death. This agreement is temporary.
\Common Disaster Provision - ANS -A provision that can be included in a Life contrat that pvoides that the primary
beneficiary must outlive the insured by a specified period of time in order to receive the proceeds. If not, the contingent
beneficiary receives that proceeds. The provision is designed to protect the rights of the contingent beneficiary in the
event of simultaneous death of the insured and the primary beneficiary. The time limit is up to 90 days, depending on state
law.
Absolute Assignment - ANS -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
\Accelerated benefit - ANS -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
\Accident - ANS -A fortuitous event; unforeseen and unintended
\Accident and Sickness - ANS -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 - ANS -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
\Accidental Death Insurance - ANS -A form of health insurance that provides payment if death of the insured results from
an accident. Accidental death insurance is often combined with dismemberment insurance in a form called accidental
death and dismemberment (AD&D)
\Accumulation at interest option - ANS -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 - ANS -Once concerned with the application of probability and statistical theory to insurance. This person sets
expenses, and interest assumptions.
\AD&D - ANS -Accidental death and dismemberment insurance.
\ADB - ANS -Accidental death benefit, also known as double indemnity. There is another variation called triple indemnity.
\Administrator - ANS -The person appointed by a court to settle a deceased's estate, sometimes called and executor.
\Adverse selection - ANS -Selection against the insurance company. The tendency of poorer risks to want insurance more
often than standard risks.
\Agent - ANS -The individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance
contracts on its behalf.
\Aleatory - ANS -Something that depends upon chance or is random. It is derived from the Latin idea of "rolling the dice."
,\Aleatory contract - ANS -A contract in which both parties know that one or the other may receive more than paid in. This
payment is dependent upon a fortuitous event. For example. a person pays the premium for a term policy for many years
and does not die, thus, a claim is never filed.
\Alien company - ANS -An insured organized and domiciled in a country other than the United States
\Annuitant - ANS -The one receiving the Annuity and on whose life expectancy the rates are figured.
\Annuity - ANS -1. An amount of money, payable monthly or yearly, which liquidates a financial asset. 2. An agreement by
an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period.
Annuities are also accumulations vehicles that function much like savings accounts.
\Applicant - ANS -The party making application to the insurance company for the policy
\Application - ANS -A form on which the prospective insured states facts requested by the insurer and on the basis of
which the insurer decides whether to accept the risk, modify the coverage offered, or decline the risk.
\Assignee - ANS -The person to whom policy rights are assigned in whole or in part by the policy owner.
\Assignment - ANS -The transfer of rights in a policy to someone other than the policy owner.
\Attained age - ANS -The present age of the insured. This is a factor when a person converts term insurance to whole life
insurance or buys added disability under a GIR provision
\Attorney-in-fact - ANS -A person to whom authorization is given by an individual to exchange insurance with other
persons. Always present in a reciprocal insurance company.
\Authorized company - ANS -An insurer permitted to sell insurance within a state, evidenced by a certificate of authority
from the insurance commissioner, also called ADMITTED
\Automatic premium loan - ANS -A provision in a life policy authorizing the insurance company to use the loan value to
pay premiums not paid by the end of the grace period. May be present in whole life or other traditional cash value policies
only, but never in term policies
\Aviation clause - ANS -Limits or excludes coverage when the insured is participating in specified types of air travel, cush
as private planes. Coverage is usually fully in force for people on regularly scheduled commercial flights. The limit or
exclusion often applies to student pilots
\Beneficiary - ANS -A person who may become eligible to receive, or is receiving, benefits under an insurance plan, other
than as a participant.
\Blanket Insurance Contract - ANS -A contract of Health Insurance that covers all of a class of persons not individually
identified. No certificates are issued and people covered may not be aware that the coverage is in place.
, \Blue Plan - ANS -The generic term for those insurers (usually on a service rather than a reimbursement bases) who are
authorized to use the designation Blue Cross or Blue Shield and the insignia of either.
\Broker - ANS -One who represents an insured in the solicitation, negotiation, or procurement of contracts of insurance,
functions. This person is also called an independent agent.
\Business Insurance - ANS -Life or Health insurance written to vober business situations, such as key person, sole
proprietor, partnership, corporations, ect.
\Cancelable - ANS -A contract of Insurance that may be terminated by the insurance company or insured at any time.
Virtually every form of insurance is cancelable except Life insurance and those health policies designated as guaranteed
renewable, or non-cancelable and guaranteed renewable.
\Cancellation - ANS -The termination of a contract of insurance in force by voluntary act of the insurance company or
insured, effected in accordance with provisions in the contract or by mutual agreement.
\Capital Sum - ANS -The maximum amount payable in one sum in the event of accidental dismemberment. It is typically
half of the face amount of principal sum.
\Cash Surrender Value - ANS -The value reposing in a policy that is the legal property of the policy owner and that may be
expected should the policy be surrendered for cash. Synonymous with cash value.
\Certificate - ANS -A statement Evidencing that a policy has been written and stating the coverage in general. Often used
with group coverage.
\Claim - ANS -A demand for payment under the insurance policy.
\Classification - ANS -The grouping of persons for the purpose of determining an underwriting or rating group into which a
particular risk must be placed.
\Co-Insurance - ANS -In Health Insurance, a provision that the insured and insurance company will share covered losses
in agreed proportion.
\Collateral Assignment - ANS -The assignment of part of the proceeds of an insurance policy to a bank as collateral to
settle the loan balance that may exist at the insured's death. This agreement is temporary.
\Common Disaster Provision - ANS -A provision that can be included in a Life contrat that pvoides that the primary
beneficiary must outlive the insured by a specified period of time in order to receive the proceeds. If not, the contingent
beneficiary receives that proceeds. The provision is designed to protect the rights of the contingent beneficiary in the
event of simultaneous death of the insured and the primary beneficiary. The time limit is up to 90 days, depending on state
law.
