DELAWARE LIFE INSURANCE FINAL EXAM
STUDY SHEET 2026 TERMS AND DEFINITIONS
WITH SOLUTIONS
◉ Accidental Death Benefits. Answer: A policy rider that states that
the cause of death will be analyzed to determine if it complies with
the policy description of accidental death
◉ Accidental Death Insurance. Answer: An insurance policy that
provides payment if the insured's death is the result of an accident.
◉ Accumilation Period. Answer: The time before any annuitant's
retirement during which the annuitant is making payment or
investments in an annuity.
◉ Acquired Immunodeficiency Syndrome (AIDS). Answer: An
infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
◉ Actual Cash Value (ACV). Answer: The required amount to pay
damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,◉ Actuary. Answer: A person trained in the technical aspects of
insurance and related fields, particularly in the mathematics of
insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
◉ Adhesion. Answer: A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is either to
accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
◉ Adjustable Life. Answer: Life insurance which permits changes in
the face amount, premium amount, period of protection, and the
duration of the premium payment period.
◉ Adjuster. Answer: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
◉ Administrator. Answer: An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased
person
◉ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
,◉ Adult Day Care. Answer: A program for impaired adults that
attempts to meet their health, social, and functional needs in a
setting away from their homes.
◉ Adverse Selection. Answer: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often
than the risks who present lower probability.
◉ Agency. Answer: An insurance sales office or company.
◉ Agent. Answer: An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer
◉ Agent's Authority. Answer: Special powers granted to an agent by
his or her agency contract.
◉ Aleatory. Answer: A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that
the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
◉ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
, ◉ Alzheimer's Disease. Answer: A disease that causes the victim to
become dysfunctional due to degeneration of brain cells and severe
memory loss
◉ Annual Statement. Answer: A detailed financial report that an
insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
◉ Annuity. Answer: A contract that provides income for a specified
period of years, or for life.
◉ Apparent Authority. Answer: The appearance or the assumption
of authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
◉ Applicant. Answer: A person making application for, or offering
him/herself or another to be insured under an insurance contract.
◉ Application. Answer: A document that provides information for
underwriting purposes. After the policy is issued, any unanswered
questions are considered waived by the insurer.
◉ Assignment. Answer: the transfer of ownership rights of a life
insurance policy from one person to another
STUDY SHEET 2026 TERMS AND DEFINITIONS
WITH SOLUTIONS
◉ Accidental Death Benefits. Answer: A policy rider that states that
the cause of death will be analyzed to determine if it complies with
the policy description of accidental death
◉ Accidental Death Insurance. Answer: An insurance policy that
provides payment if the insured's death is the result of an accident.
◉ Accumilation Period. Answer: The time before any annuitant's
retirement during which the annuitant is making payment or
investments in an annuity.
◉ Acquired Immunodeficiency Syndrome (AIDS). Answer: An
infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
◉ Actual Cash Value (ACV). Answer: The required amount to pay
damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,◉ Actuary. Answer: A person trained in the technical aspects of
insurance and related fields, particularly in the mathematics of
insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
◉ Adhesion. Answer: A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is either to
accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
◉ Adjustable Life. Answer: Life insurance which permits changes in
the face amount, premium amount, period of protection, and the
duration of the premium payment period.
◉ Adjuster. Answer: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
◉ Administrator. Answer: An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased
person
◉ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
,◉ Adult Day Care. Answer: A program for impaired adults that
attempts to meet their health, social, and functional needs in a
setting away from their homes.
◉ Adverse Selection. Answer: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often
than the risks who present lower probability.
◉ Agency. Answer: An insurance sales office or company.
◉ Agent. Answer: An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer
◉ Agent's Authority. Answer: Special powers granted to an agent by
his or her agency contract.
◉ Aleatory. Answer: A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that
the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
◉ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
, ◉ Alzheimer's Disease. Answer: A disease that causes the victim to
become dysfunctional due to degeneration of brain cells and severe
memory loss
◉ Annual Statement. Answer: A detailed financial report that an
insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
◉ Annuity. Answer: A contract that provides income for a specified
period of years, or for life.
◉ Apparent Authority. Answer: The appearance or the assumption
of authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
◉ Applicant. Answer: A person making application for, or offering
him/herself or another to be insured under an insurance contract.
◉ Application. Answer: A document that provides information for
underwriting purposes. After the policy is issued, any unanswered
questions are considered waived by the insurer.
◉ Assignment. Answer: the transfer of ownership rights of a life
insurance policy from one person to another
