Loma 280 Questions with Complete Solutions
beneficiary The person or party the policy owner names to receive the the life insurance
policy benefit (1)
benefit formula A formula that describes the calculation of a plan's financial obligation to
participants in a retirement plan (12)
benefit period The time during which the insurer agrees to pay income benefits to the
insured under a disability income or long term care insurance policy. (13)
benefit schedule A schedule included in a group life insurance policy that defines the
amount of life insurance the policy provides for each insured (11)
benefit trigger A long term care insurance policy requirement specifying the conditions
that establish an insured's eligibility to receive long term care benefits. (13)
,bilateral contract A contract in which both parties make legally enforceable promises
which they enter into the contract. Contrast with unilateral contract (3)
blended rating A method of setting group insurance premium rates under which the
insurer uses a combination of manual rating and experience rating (11)
block of policies A group of policies issued to insureds who are all the same age, the same
sex and in the same risk classification (4)
board of directors A group of individuals who are responsible for overseeing the
management of a corporation (2)
business continuation insurance plan An insurance plan designed to enable a business
owner (or owners) to provide for the business' continued operation if the owner or another key
person dies. [5]
buy sell agreement An agreement in which (1) one party agrees to purchase the financial
interest that a second party has in a business following the second part's death and (2) the second
party agrees to direct his estate to sell his interest in the business to the purchasing party.
,calendar year deductible A deductible that applies to the total of all allowable expenses an
insured incurs during a given calendar year (13)
cash payment non forfeiture option A cash value life insurance policy non forfeiture
option under which the policy owner discontinues premium payments and receives the policy's
cash surrender value in a lump-sum payment
cash surrender value The amount of the cash value that a policy owner is entitled to
receive upon surrender of the policy. Also known as the surrender value or surrender benefit (6)
cash value The savings element of a cash value life insurance policy (6)
cash value life insurance Life insurance that provides insurance coverage throughout the
insured's lifetime and provides a savings element, known as the cash value. Sometimes referred
to as permanent life insurance. Contrast with Term life insurance (6)
certificate holder An individual who is insured under a group insurance plan and who has
received a certificate of insurance (11)
, certificate of authority A document that grants an insurer the right to conduct an insurance
business and sell insurance products in the jurisdiction that grants the certificate. Also known as
a license (2)
certificate of insurance A document that describes the coverage that the group insurance
contract provides and a group insured's rights under the contract. (11)
children's insurance rider A supplemental life insurance policy benefit that provides term
life insurance coverage on the insured's children
claim A request for payment under the terms of an insurance policy (1)
claim costs The costs the insurer predicts that it will incur to provide the policy benefits
promised under a health insurance policy (14)
class designation A beneficiary designation that identifies a certain group of persons
rather than naming each person (9)
beneficiary The person or party the policy owner names to receive the the life insurance
policy benefit (1)
benefit formula A formula that describes the calculation of a plan's financial obligation to
participants in a retirement plan (12)
benefit period The time during which the insurer agrees to pay income benefits to the
insured under a disability income or long term care insurance policy. (13)
benefit schedule A schedule included in a group life insurance policy that defines the
amount of life insurance the policy provides for each insured (11)
benefit trigger A long term care insurance policy requirement specifying the conditions
that establish an insured's eligibility to receive long term care benefits. (13)
,bilateral contract A contract in which both parties make legally enforceable promises
which they enter into the contract. Contrast with unilateral contract (3)
blended rating A method of setting group insurance premium rates under which the
insurer uses a combination of manual rating and experience rating (11)
block of policies A group of policies issued to insureds who are all the same age, the same
sex and in the same risk classification (4)
board of directors A group of individuals who are responsible for overseeing the
management of a corporation (2)
business continuation insurance plan An insurance plan designed to enable a business
owner (or owners) to provide for the business' continued operation if the owner or another key
person dies. [5]
buy sell agreement An agreement in which (1) one party agrees to purchase the financial
interest that a second party has in a business following the second part's death and (2) the second
party agrees to direct his estate to sell his interest in the business to the purchasing party.
,calendar year deductible A deductible that applies to the total of all allowable expenses an
insured incurs during a given calendar year (13)
cash payment non forfeiture option A cash value life insurance policy non forfeiture
option under which the policy owner discontinues premium payments and receives the policy's
cash surrender value in a lump-sum payment
cash surrender value The amount of the cash value that a policy owner is entitled to
receive upon surrender of the policy. Also known as the surrender value or surrender benefit (6)
cash value The savings element of a cash value life insurance policy (6)
cash value life insurance Life insurance that provides insurance coverage throughout the
insured's lifetime and provides a savings element, known as the cash value. Sometimes referred
to as permanent life insurance. Contrast with Term life insurance (6)
certificate holder An individual who is insured under a group insurance plan and who has
received a certificate of insurance (11)
, certificate of authority A document that grants an insurer the right to conduct an insurance
business and sell insurance products in the jurisdiction that grants the certificate. Also known as
a license (2)
certificate of insurance A document that describes the coverage that the group insurance
contract provides and a group insured's rights under the contract. (11)
children's insurance rider A supplemental life insurance policy benefit that provides term
life insurance coverage on the insured's children
claim A request for payment under the terms of an insurance policy (1)
claim costs The costs the insurer predicts that it will incur to provide the policy benefits
promised under a health insurance policy (14)
class designation A beneficiary designation that identifies a certain group of persons
rather than naming each person (9)
