LIFE ACCIDENT INSURANCE LATEST EXAM WITH COMPLETE SOLUTION Exam (elaborations)

LIFE ACCIDENT INSURANCE LATEST EXAM WITH COMPLETE SOLUTION Exam (elaborations) 401(k) Plan - answerCODA plan in which plan participants make contributions via salary reductions, cash bonuses or thrift plans. 403(b) Tax-sheltered Annuity - answer401(k) plan for employees of nonprofit organizations and public schools. 408(k) Plan - answerQualified plans for small employers. A mix of an IRA and profit-sharing plan. More commonly referred to as a SEP. Absolute - answerAn absolute assignment occurs when the policyowner assigns all rights including cash values to another person or entity. Synonymous with voluntary assignment. Absolute Value - answerA medical expense plan that pays a fixed maximum dollar amount for a procedure. Accelerated Benefit Rider - answerLife insurance rider which allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness. Accidental Bodily Injury - answerDefinition of accident in which the injury is unintentional and unexpected. Policies using this definition cover all injuries except self-inflicted injuries. Accidental Death and Dismemberment (AD&D) - answerStandalone accident-only policy which only pays benefits if an insured dies or has a dismembered body part as a result of an accident. Accidental Death and Dismemberment (AD&D) Rider - answerPays a lump-sum benefit for death, loss of limbs, or blindness. Identical to the standalone AD&D policy. Accidental Death and Dismemberment Rider - answerLife insurance rider which pays an additional sum, termed the principal sum, to the beneficiary if the insured dies due to an accident. Also applies to accidental death and dismemberment policies in which the policy will pay double or triple the benefit based on dismemberment or death. Synonymous with multiple indemnity rider.