Colorado State Life Insurance Terms

Activities of Daily Living (ADLs) - answer-a person's essential activities that include bathing, dressing, eating, transferring, toileting, continence Adverse Selection - answer-insuring risks that are more prone to losses than the average risk Agent/Producer - answer-a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer Aggregate - answer-combined, total Applicant - answer-a person applying for insurance Assignment - answer-transfer of right of policy ownership Attained Age - answer-the insured's age at the time the policy is issued or renewed Authorized Insurer - answer-insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state Beneficiary - answer-one who receives the benefits of an insurance policy Business Entity - answer-a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity Cash Value - answer-a policy's savings element or living benefit Cease and Desist - answer-to stop or discontinue Commisioner - answer-the head of the division of insurance Commission - answer-payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium Compliance - answer-meeting official requirements Consideration - answer-something of value that each party gives to the other (binding force in any contract) Death Benefit - answer-the amount paid upon the death of the insured in a life insurance policy Deferred - answer-withheld or postponed until a specified time or event in the future Disclosure - answer-revealed information to help someone make an intelligent and educated decision Earned income - answer-salary, wages, or commissions; but not income from investments, unemployment benefits, and similar sources of income Endow - answer-the cash value of a whole life policy has reached the contractual face amount Exempt - answer-not subject to an obligation Face Amount - answer-the amount of benefit stated in the life insurance policy FIFO (first in first out) - answer-principle under which it is assumed that the funds paid into the policy first will be paid out first Fixed Life Insurance - answer-contracts that offer guaranteed minimum or fixed benefits Fraud - answer-Intentional misrepresentation or deceit with the intent to induce a person to part with something of value. Gross Income - answer-a person's income before taxes or other deductions Immunity - answer-exemption from a duty or legal obligation, or protection against a liability Indemnity - answer-a principle of reimbursement on which insurance is based; in the event of loss, an insurer reimburses the insureds of beneficiaries for the loss Inducement - answer-an offer that attempts to influence the other party Insurance Policy - answer-a contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events Insured - answer-A person covered by an insurance policy; may or may not be the policyowner Insurer (principal) - answer-the company who issues an insurance policy Lapse - answer-policy termination due to nonpayment of premium Level Premium - answer-the premium that does not change throughout the life of a policy Life Insurance - answer-coverage on human lives LIFO (last in, first out) - answer-principle applied to asset management in life insurance products, under which it is assumed that the funds paid into the policy last will be paid out first Liquidation of an Estate - answer-converting a person's net worth into a cash flow Lump Sum - answer-payment of entire benefit in one sum Minor - answer-a person under legal age Moral Turpitude - answer-conduct that is contrary to community standards of justice, honesty, or good morals NAIC (National Association of Insurance Commissioners) - answer-an organization composed of insurance Commissioners from all states and jurisdictions formed to resolve insurance regulatory issues Nonforfeiture Values - answer-benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses Nonprofit Organization - answer-an organization that uses its surplus to fulfill its purpose instead of distributing the surplus to its owners or members Policy Endowment - answer-maturity date Policy Maturity - answer-in life policies, the time when the face value is paid out Policyowner - answer-the person entitled to exercise the rights and privileges in the policy Premium - answer-the money paid to the insurance company for the insurance policy Pretax Contribution - answer-contribution made before federal and/or state taxes are deducted from earnings Principal - answer-the face value of the policy; the original amount invested before the earnings Promulgate - answer-to make public, to put into action (laws, court decrees etc) Quali