LIFE
LIFE AND HEALTH INSURANCE - OHIO
LICENSING 2025 EXAM PREP
Absolute Assignment - The assignment by the policy owner of all
control and rights to a third party. This differs from collateral
assignment, which allows all the rights and control to revert to the
owner once a loan is paid off
Accident - A fortuitous event; unforeseen and unintended
Accidental Death Insurance - A form of health insurance that
provides payment if death of the insured results from accident.
Accidental death insurance is often combined with
dismemberment insurance in a form called accidental death and
dismemberment (AD&D)
Accident and Sickness - Insurance against bodily injury, disability,
or death by accident or accidental means, or expense thereof, or
against disability or expense resulting from sickness and the
insurance relating thereto
Accident means - The unexpected cause of an accidental bodily
injury. Under an accidental means definition, the mishap itself
must be accidental. If a person does something to contribute to
the accident, the claim would not be paid under this restrictive
definition
Accelerated benefit - Available only if the benefits are available
during the insured's lifetime, benefit amounts are fixed when
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
,LIFE
accelerated, and the benefits, when paid, reduces the death
benefit
Accumulation at interest option - A dividend option under which
the policy owner allows dividends to accumulate at interest with
the company. Only the interest on the dividends is taxable as
income (participating policies only).
Actuary - Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and
interest assumptions.
ADB - Accidental death benefit, also known as double indemnity.
There is another variation called triple indemnity.
AD&D - Accidental death and dismemberment insurance.
Administrator - The person appointed by a court to settle a
deceased's estate, sometimes called and executor.
Adverse selection - Selection against the insurance company. The
tendency of poorer risks to want insurance more often than
standard risks.
Agent - The individual appointed by an insurance company to
solicit, negotiate, effect, or countersign insurance contracts on its
behalf.
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
,LIFE
Aleatory - Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - A contract in which both parties know that one
or the other may receive more than paid in. This payment is
dependent upon a fortuitous event. For example. a person pays
the premium for a term policy for many years and does not die,
thus, a claim is never filed.
Alien company - An insured organized and domiciled in a country
other than the United States
Annuitant - The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - 1. An amount of money, payable monthly or yearly,
which liquidates a financial asset. 2. An agreement by an insurer
to make periodic payments that continue during the survival of
the annuitant(s) or for a specified period. Annuities are also
accumulations vehicles that function much like savings accounts.
Applicant - The party making application to the insurance
company for the policy
Application - A form on which the prospective insured states facts
requested by the insurer and on the basis of which the insurer
decides whether to accept the risk, modify the coverage offered,
or decline the risk.
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
, LIFE
Assignee - The person to whom policy rights are assigned in whole
or in part by the policy owner.
Assignment - The transfer of rights in a policy to someone other
than the policy owner.
Attained age - The present age of the insured. This is a factor
when a person converts term insurance to whole life insurance or
buys added disability under a GIR provision
Attorney-in-fact - A person to whom authorization is given by an
individual to exchange insurance with other persons. Always
present in a reciprocal insurance company.
Authorized company - An insurer permitted to sell insurance
within a state, evidenced by a certificate of authority from the
insurance commissioner, also called ADMITTED
Automatic premium loan - A provision in a life policy authorizing
the insurance company to use the loan value to pay premiums
not paid by the end of the grace period. May be present in whole
life or other traditional cash value policies only, but never in term
policies
Aviation clause - Limits or excludes coverage when the insured is
participating in specified types of air travel, cush as private
planes. Coverage is usually fully in force for people on regularly
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
LIFE AND HEALTH INSURANCE - OHIO
LICENSING 2025 EXAM PREP
Absolute Assignment - The assignment by the policy owner of all
control and rights to a third party. This differs from collateral
assignment, which allows all the rights and control to revert to the
owner once a loan is paid off
Accident - A fortuitous event; unforeseen and unintended
Accidental Death Insurance - A form of health insurance that
provides payment if death of the insured results from accident.
Accidental death insurance is often combined with
dismemberment insurance in a form called accidental death and
dismemberment (AD&D)
Accident and Sickness - Insurance against bodily injury, disability,
or death by accident or accidental means, or expense thereof, or
against disability or expense resulting from sickness and the
insurance relating thereto
Accident means - The unexpected cause of an accidental bodily
injury. Under an accidental means definition, the mishap itself
must be accidental. If a person does something to contribute to
the accident, the claim would not be paid under this restrictive
definition
Accelerated benefit - Available only if the benefits are available
during the insured's lifetime, benefit amounts are fixed when
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
,LIFE
accelerated, and the benefits, when paid, reduces the death
benefit
Accumulation at interest option - A dividend option under which
the policy owner allows dividends to accumulate at interest with
the company. Only the interest on the dividends is taxable as
income (participating policies only).
Actuary - Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and
interest assumptions.
ADB - Accidental death benefit, also known as double indemnity.
There is another variation called triple indemnity.
AD&D - Accidental death and dismemberment insurance.
Administrator - The person appointed by a court to settle a
deceased's estate, sometimes called and executor.
Adverse selection - Selection against the insurance company. The
tendency of poorer risks to want insurance more often than
standard risks.
Agent - The individual appointed by an insurance company to
solicit, negotiate, effect, or countersign insurance contracts on its
behalf.
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
,LIFE
Aleatory - Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - A contract in which both parties know that one
or the other may receive more than paid in. This payment is
dependent upon a fortuitous event. For example. a person pays
the premium for a term policy for many years and does not die,
thus, a claim is never filed.
Alien company - An insured organized and domiciled in a country
other than the United States
Annuitant - The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - 1. An amount of money, payable monthly or yearly,
which liquidates a financial asset. 2. An agreement by an insurer
to make periodic payments that continue during the survival of
the annuitant(s) or for a specified period. Annuities are also
accumulations vehicles that function much like savings accounts.
Applicant - The party making application to the insurance
company for the policy
Application - A form on which the prospective insured states facts
requested by the insurer and on the basis of which the insurer
decides whether to accept the risk, modify the coverage offered,
or decline the risk.
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
, LIFE
Assignee - The person to whom policy rights are assigned in whole
or in part by the policy owner.
Assignment - The transfer of rights in a policy to someone other
than the policy owner.
Attained age - The present age of the insured. This is a factor
when a person converts term insurance to whole life insurance or
buys added disability under a GIR provision
Attorney-in-fact - A person to whom authorization is given by an
individual to exchange insurance with other persons. Always
present in a reciprocal insurance company.
Authorized company - An insurer permitted to sell insurance
within a state, evidenced by a certificate of authority from the
insurance commissioner, also called ADMITTED
Automatic premium loan - A provision in a life policy authorizing
the insurance company to use the loan value to pay premiums
not paid by the end of the grace period. May be present in whole
life or other traditional cash value policies only, but never in term
policies
Aviation clause - Limits or excludes coverage when the insured is
participating in specified types of air travel, cush as private
planes. Coverage is usually fully in force for people on regularly
LIFE AND HEALTH INSURANCE - OHIO LICENSING 2025 EXAM PREP
