Delaware Life Insurance Exam Terms Questions AND Correct
Answers
Accelerated Benefits - ✔✔Riders attached to life insurance
policies which allow death benefits to be used to cover
nursing home expenses or convalescent home expenses
Accidental Death Benefits - ✔✔A policy rider that states that
the cause of death will be analyzed to determine if it complies
with the policy description of accidental death
Accidental Death Insurance - ✔✔An insurance policy that
provides payment if the insured's death is the result of an
accident.
Accumilation Period - ✔✔The time before any annuitant's
retirement during which the annuitant is making payment or
investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - ✔✔An
infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
,Actual Cash Value (ACV) - ✔✔The required amount to pay
damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
Actuary - ✔✔A person trained in the technical aspects of
insurance and related fields, particularly in the mathematics
of insurance; a person who, on behalf of the company,
determines the mathematical probability of loss.
Adhesion - ✔✔A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is either
to accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life - ✔✔Life insurance which permits changes in
the face amount, premium amount, period of protection, and
the duration of the premium payment period.
Adjuster - ✔✔A representative of an insurance company who
investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
,Administrator - ✔✔An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a
deceased person
Admitted (Authorized) Insurer - ✔✔An insurance company
authorized and licensed to transact business in a particular
state.
Adverse Selection - ✔✔The tendency of risks with higher
probability of loss to purchase and maintain insurance more
often than the risks who present lower probability.
Agency - ✔✔An insurance sales office or company.
Agent - ✔✔An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer
Agent's Authority - ✔✔Special powers granted to an agent by
his or her agency contract.
Aleatory - ✔✔A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory
, in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of a
loss.
Alien Insurer - ✔✔An insurance company that is incorporated
outside the United States.
Annual Statement - ✔✔A detailed financial report that an
insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Annuity - ✔✔A contract that provides income for a specified
period of years, or for life.
Apparent Authority - ✔✔The appearance or the assumption
of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Applicant - ✔✔A person making application for, or offering
him/herself or another to be insured under an insurance
contract.
Answers
Accelerated Benefits - ✔✔Riders attached to life insurance
policies which allow death benefits to be used to cover
nursing home expenses or convalescent home expenses
Accidental Death Benefits - ✔✔A policy rider that states that
the cause of death will be analyzed to determine if it complies
with the policy description of accidental death
Accidental Death Insurance - ✔✔An insurance policy that
provides payment if the insured's death is the result of an
accident.
Accumilation Period - ✔✔The time before any annuitant's
retirement during which the annuitant is making payment or
investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - ✔✔An
infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
,Actual Cash Value (ACV) - ✔✔The required amount to pay
damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
Actuary - ✔✔A person trained in the technical aspects of
insurance and related fields, particularly in the mathematics
of insurance; a person who, on behalf of the company,
determines the mathematical probability of loss.
Adhesion - ✔✔A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is either
to accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life - ✔✔Life insurance which permits changes in
the face amount, premium amount, period of protection, and
the duration of the premium payment period.
Adjuster - ✔✔A representative of an insurance company who
investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
,Administrator - ✔✔An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a
deceased person
Admitted (Authorized) Insurer - ✔✔An insurance company
authorized and licensed to transact business in a particular
state.
Adverse Selection - ✔✔The tendency of risks with higher
probability of loss to purchase and maintain insurance more
often than the risks who present lower probability.
Agency - ✔✔An insurance sales office or company.
Agent - ✔✔An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer
Agent's Authority - ✔✔Special powers granted to an agent by
his or her agency contract.
Aleatory - ✔✔A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory
, in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of a
loss.
Alien Insurer - ✔✔An insurance company that is incorporated
outside the United States.
Annual Statement - ✔✔A detailed financial report that an
insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Annuity - ✔✔A contract that provides income for a specified
period of years, or for life.
Apparent Authority - ✔✔The appearance or the assumption
of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Applicant - ✔✔A person making application for, or offering
him/herself or another to be insured under an insurance
contract.
