Xcel Texas Pre-Licensing
Education – Life & Health
Insurance Glossary 2026 |
Questions, Answers &
Rationales Study Guide
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Accidental death benefit rider A life insurance policy rider providing for payment of an additional benefit when
death occurs by accidental means.
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.
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.
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.
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.
Acquired immune deficiency syndrome (AIDS) A life-threatening condition brought on by the human immunodeficiency virus;
insurers must adhere to strict underwriting and claims guidelines in regard to AIDS
risks and AIDS-related conditions.
Acute illness A serious condition, such as pneumonia, from which the body can fully recover
with proper medical attention.
Adhesion A life insurance policy is a contract of adhesion because buyers must adhere to
the terms of the contract already in existence. They have no opportunity to
negotiate terms, rates, values, and so on.
Adjustable life insurance Combines features of both term and whole life coverage with the length of
coverage and amount of accumulated cash value as the adjustable factors.
Premiums may be increased or decreased to fit the specific needs. Such
adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan Arrangement under which an insurance company or an independent organization,
for a fee, handles the administration of claims, benefits, and other administrative
functions for a self-insured group.
Admitted insurer An insurance company that has met the legal and financial requirements for
operation within a given state.
Education – Life & Health
Insurance Glossary 2026 |
Questions, Answers &
Rationales Study Guide
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Accidental death benefit rider A life insurance policy rider providing for payment of an additional benefit when
death occurs by accidental means.
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.
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.
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.
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.
Acquired immune deficiency syndrome (AIDS) A life-threatening condition brought on by the human immunodeficiency virus;
insurers must adhere to strict underwriting and claims guidelines in regard to AIDS
risks and AIDS-related conditions.
Acute illness A serious condition, such as pneumonia, from which the body can fully recover
with proper medical attention.
Adhesion A life insurance policy is a contract of adhesion because buyers must adhere to
the terms of the contract already in existence. They have no opportunity to
negotiate terms, rates, values, and so on.
Adjustable life insurance Combines features of both term and whole life coverage with the length of
coverage and amount of accumulated cash value as the adjustable factors.
Premiums may be increased or decreased to fit the specific needs. Such
adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan Arrangement under which an insurance company or an independent organization,
for a fee, handles the administration of claims, benefits, and other administrative
functions for a self-insured group.
Admitted insurer An insurance company that has met the legal and financial requirements for
operation within a given state.
