Life Insurance Exam 1 (Primerica) #Verified

Life Insurance Exam 1 (Primerica) #Verified 401k plan *Ans* A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment *Ans* Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit *Ans* Policy provision that allows full or partial payment of the policy's death benefit before the insured's death if he/she is terminally ill. Accidental Death Benefit *Ans* An extra cost rider that requires the insurance company to pay an additional benefit in the event that the insured dies within 90 days of an accident as a direct result of the accident. Accumulate at Interest *Ans* The Dividend Option where the policyowner leaves the dividends with the insurer to invest and earn interest. Adhesion *Ans* Since the insurer created all the documents of the contract, any ambiguities in the contract will be settled in favor of the insured. Since the insurer wrote the contract they are stuck with it Adverse Selection *Ans* The tendency for less favorable risks to seek or continue insurance to a greater extent than more favorable risks. Agency Agreement or Agency Contract *Ans* A legal document containing the terms of the agreement between the agent and the insurance company. It clearly defines what an agent can and cannot do, and how he/she will be compensated. Agent Authorities *Ans* Expressed: Power or authority specifically granted in writing to an agent by the insurance company in their Agency Agreement. Apparent: Power or authority that the public reasonably