Life, Accident and Health Exam

Annuity - Answer- -A contract between a person and an insurance company that requires the insurer to make payments to you. -You buy an annuity by making either a single payment or a series of payments -Annuity Death benefits are NOT tax deductible or taxfree Dividends - Answer- -Declared by the board of directors and cannot be guaranteed -A sum of money paid regularly by a company to its shareholders out of its profits Stock Insurers - Answer- -Owned by the stockholders who elect the board of directors. -Profits are paid to the stockholders. Frequency - Answer- -When the pricing principle is defined in a disability policy by a financial loss in a certain group occuring over a certain period of time. Beneficiary - Answer- One who receives benefits Medi-Cal - Answer- health care program for the poor Medicare - Answer- A - provides coverage for hospital services, free to those who reach 65) B - provides coverage for doctor services (optional) C - does NOT cover prescription drugs D - Prescription Drugs Utmost Good Faith - Answer- -Allows each party to rely on the representation made by other party Patient Protection & Affordable Care Act (PPACA) - Answer- This is the health care reform law. Focuses on reform of the private health insurance market; providing better coverage for those with pre-existing conditions; improving prescription drug coverage in Medicare. Period - Answer- Probationary- Elimination- the waiting period included in disability income policies Grace- Waiting (deductible)- The period of time the insured is not eligible for benefits once they become disabled (30, 60, 90days) Coinsurance - Answer- -Feature of Major Medical insurance -Defined as sharing the loss after the deductible has been satisfied -Usually expressed as percentage sharing of the loss between the insurer and the insured