LOMA 280 MODULE 1 VERIFIED STUDY GUIDE
annuity contract - Answers - a contract under which an insurer promises to make a
series of periodic payments to a named individual in exchange for a premium or series
of premiums
antiselection - Answers - the tendency of individuals who believe they have a greater-
than-average likelihood of loss to seek insurance protection to a greater extent than do
other individuals. Also known as adverse selection or selection against the insurer
applicant - Answers - the person or business that applies for an insurance policy
beneficiary (life insurance policy) - Answers - for a life insurance policy, the person or
party the policyowner names to receive the policy benefit
cash value - Answers - the savings element of a cash value life insurance policy
cash value life insurance - Answers - life insurance that provides coverage throughout
the insured's lifetime and also provides a savings element, known as the cash value.
Also known as permanent life insurance
claim - Answers - a request for payment under the terms of an insurance policy
contract of indemnity - Answers - an insurance policy under which the amount of the
policy benefit payable for a covered loss is based on the actual amount of the financial
loss that results from the covered event, as determined at the time of the event
declined risk - Answers - a proposed insured who presents a risk that is too great for the
insurer to cover
direct writer - Answers - in a reinsurance transaction, the insurance company that
purchases reinsurance to transfer all or part of the risks on insurance policies the
company issued. Also known as a ceding company
disability income coverage - Answers - a type of health insurance coverage that
provides income replacement benefits if an insured is unable to work because of illness
or injury
endowment insurance - Answers - life insurance that provides a policy benefit payable
either when the insured dies or on a stated date if the insured is still alive on that date
group insurance policy - Answers - a policy that insures the lives or health of a specific
group of people, such as employees
annuity contract - Answers - a contract under which an insurer promises to make a
series of periodic payments to a named individual in exchange for a premium or series
of premiums
antiselection - Answers - the tendency of individuals who believe they have a greater-
than-average likelihood of loss to seek insurance protection to a greater extent than do
other individuals. Also known as adverse selection or selection against the insurer
applicant - Answers - the person or business that applies for an insurance policy
beneficiary (life insurance policy) - Answers - for a life insurance policy, the person or
party the policyowner names to receive the policy benefit
cash value - Answers - the savings element of a cash value life insurance policy
cash value life insurance - Answers - life insurance that provides coverage throughout
the insured's lifetime and also provides a savings element, known as the cash value.
Also known as permanent life insurance
claim - Answers - a request for payment under the terms of an insurance policy
contract of indemnity - Answers - an insurance policy under which the amount of the
policy benefit payable for a covered loss is based on the actual amount of the financial
loss that results from the covered event, as determined at the time of the event
declined risk - Answers - a proposed insured who presents a risk that is too great for the
insurer to cover
direct writer - Answers - in a reinsurance transaction, the insurance company that
purchases reinsurance to transfer all or part of the risks on insurance policies the
company issued. Also known as a ceding company
disability income coverage - Answers - a type of health insurance coverage that
provides income replacement benefits if an insured is unable to work because of illness
or injury
endowment insurance - Answers - life insurance that provides a policy benefit payable
either when the insured dies or on a stated date if the insured is still alive on that date
group insurance policy - Answers - a policy that insures the lives or health of a specific
group of people, such as employees
