Study Guide
4 factors of a contract - ANS-Agreement, attention ,competent parties, criminal purpose
five Methods of coping with threat - ANS-Avoidance, retention, sharing, discount and transfer
A collateral or partial undertaking - ANS-The partial and temporary transfer of rights to every
other person or entity
A convertible term policy could have better rates because - ANS-Permanent safety is greater
high-priced than term protection
A Market Conduct exam is used to set up - ANS-An insurer's authority to transact coverage
in a specific state
Absolute project - ANS-Occurs whilst the policyowner assigns all rights consisting of coins
values to some other person or entity
Accelerated gain rider - ANS-Allows the insured to receive a part of the death benefit
previous to demise if the insured has a terminal infection
Accidental demise and dismemberment / AD&D - ANS-May be added to a life insurance
policy. Pays advantages for dismemberment and accidental loss of life. He's a most
important sum for loss of each fingers, both arms, each legs, or loss of imaginative and
prescient in each eyes.
Accidental loss of life benefit / a couple of indemnity - ANS-Pays an additional sum, termed
the important sum, to the beneficiary if the insured dies because of an twist of fate. The
amount paid is a multiple of the coverage face amount which includes double or triple
Accumulation at hobby choice - ANS-Allows the insurer to keep the dividend to be invested
and develop in price
Actuaries - ANS-Mathematicians hired by way of coverage groups that collect and examine
risk statistics
Actuaries - ANS-Mathematicians hired through insurance organizations, who analyze
statistical statistics to decide mortality and morbidity fees.
Adjustable Life - ANS-Mix of complete and time period life insurance
,Admitted insurer - ANS-Insurers which are certified and obtained a certificate of authority
which authorizes them to promote coverage for specific strains
Admitted insurers are also referred to as - ANS-Authorized or licensed insurers
Adverse Selection - ANS-Demand for insurance insurance with the aid of individuals who are
worse than common risks and much more likely to need and use the coverage
Advertising - ANS-Advertising for medical insurance regulations ought to be sincere now not
deceptive and avoid using insurance jargon the phrases and terms should be clear and
correctly describe the coverage features illustrations have to be correct and relevant as
regards to the policy advertised testimonials should be actual and cutting-edge commercials
might not make unfair incomplete or unsubstantiated assessment of different coverage
regulations or advantages
Agents - ANS-Appointed to paintings on behalf of insurance businesses
Agents - ANS-Insurance producers who represent and paintings on behalf of the insurer
Agents constitute - ANS-The insurance employer
Agreement - ANS-Made up of the provide and acceptance an offer is made when the
applicant submits an application to buy insurance in conjunction with the initial premium the
provide is frequent after it's been authorised by way of the insurer's underwriter and issuing
a policy
Alien insurer - ANS-An insurer that conducts enterprise in a rustic in which it wasn't
incorporated
Allow the policy proceeds to be retained by way of the insurer and paid out regularly -
ANS-Settlement options
Allows policyowners to make investments premiums in the insurer's separate account -
ANS-Variable lifestyles rules
Allows the policy proprietor to buy term and make investments the distinction -
ANS-Universal lifestyles coverage
An Agent is described as - ANS-An character who works on behalf of every other man or
woman or entity, called the main, in handling the contractual agreements of 0.33 events
Annual top rate - ANS-Least costly top class payment mode
Annual renewable time period - ANS-Has a level face quantity and increasing rates
Annuities - ANS-Protects in opposition to the hazard of living longer than predicted and gives
guaranteed life profits to protect towards the risk of depleting retirement funds
, Annuity rider - ANS-Can be introduced onto a lifestyles coverage coverage. Annuities shield
in opposition to the threat of depleting earnings for prolonged lifestyles
Any agent selling variable merchandise should have - ANS-A securities license in addition to
a life coverage license
Apparent authority - ANS-A scenario in which the insurer gives the customer reasonable
perception that an agent has the strength and authority to bind the principal even in
instances where the agent does now not have such authority
Applicant - ANS-the individual applying for the policy who fills out the utility to be
Application - ANS-The primary supply of information used in underwriting an coverage
coverage. The person who applies for insurance need to complete and post the utility. In
maximum cases, the utility is hooked up to, and becomes part of the agreement. Therefore,
if the insurer discovers intentional misstatements in the software, the software can be used
as a prison file.
Approval receipt - ANS-Does not offer meantime insurance but, insurance begins while the
application is permitted by the insurer
Are are dividends assured through participating regulations - ANS-No
Are dividends taxable? - ANS-No
Are company paid charges used to fund organization lifestyles coverage for the advantage
of employees tax deductible? - ANS-Yes
Are charges paid by an ex spouse as court docket ordered alimony for existence coverage
tax deductible? - ANS-Yes
Are charges used for charity tax deductible? - ANS-Yes
Assignment clause - ANS-The right to switch policy rights to any other character or entity
Attained age - ANS-The insured's age upon purchase of the term coverage
Authority and Power - ANS-Granted thru the business enterprise settlement, that's set up by
using the insurer
Automatic premium loans - ANS-Allows the insurer to mechanically use the coverage coins
price to pay an late premium
Aviation - ANS-The insurer will now not pay the claim if the insured dies because of
involvement with Aviation, which includes army pilot flying A jet aircraft