LOMA 281 Module 3
Waiver of premium for disability benefit - Answer- A supplemental life insurance policy benefit under which the insurer promises to give up - to waive - its right to collect premiums that become due while the insured is totally disabled.
Waiver of premium for payor benefit - Answer- A supplemental life insurance policy benefit under which the insurer agrees to waive its right to collect a policy's renewal premiums if the policyowner dies or becomes totally disabled.
Disability income benefit - Answer- A supplemental life insurance policy benefit that provides a monthly income benefit to the policyowner-insured if he become totally disabled when the policy is in force.
Accidental death benefit - Answer- A supplemental life insurance policy benefit that provides a death benefit, in addition to the policy's basic death benefit, if the insured dies as a result of an accident.
Accidental death and dismemberment benefit - Answer- A supplemental life insurance policy benefit that provides an accidental death benefit and provides a dismemberment benefit payable if an accident causes the insured to lose any two limbs or sight in both eyes.
Accelerated death benefit - Answer- A supplemental life insurance policy benefit that gives a policyowner-insured the right to receive all or part of the policy's death benefit before her death, if certain conditions are met.
Terminal illness benefit - Answer- An accelerated death benefit under which the insurer pays a portion of a life insurance policy's death benefit to a policyowner-
insured who suffers from a terminal illness and has a physician-certified life expectancy of 12 months or less.
Dread disease benefit - Answer- An accidental death benefit under which the insurer agrees to pay a portion of the life insurance policy's face amount to the policyowner if
the insured suffers from one of a number of specified diseases.
Long term care insurance benefit - Answer- An accelerated death benefit under which the insurer agrees to pay a monthly benefit to a life insurance policyowner if the insured requires constant care for a medical condition.
Spouse and children's insurance rider - Answer- A supplemental life insurance policy
benefit that provides term life insurance coverage on the insured's spouse and children.
Children's insurance rider - Answer- A supplemental life insurance policy benefit that provides term life insurance coverage on the insured's children. Second insured rider - Answer- A supplemental life insurance policy benefit that provides term insurance coverage on the life of a person other than the policy's insured.
Guaranteed insurability benefit - Answer- A supplemental life insurance policy benefit
that gives the policyowner the right to purchase additional insurance of the same type as the basic life insurance policy - for an additional premium amount - on specified option dates during the life of the policy without supplying evidence of the insured's insurability.
Paid up additions option benefit - Answer- A supplemental life insurance policy benefit that allows the policyowner of a whole life insurance policy to purchase singe-
premium paid-up additions to the policy on stated dates in the future without providing evidence of the insured's insurability.
Entire contract provision - Answer- An insurance policy provision that defines the documents that constitute the contract between the insurance company and the policyowner.
Closed contract - Answer- A contract for which only those terms and conditions that are printed on - or attached to - the contract are considered to be part of the contract.
Open contract - Answer- A contract that identifies the documents that constitute the contract between the parties, but the enumerated documents are not all attached to the contract.
Free look provision - Answer- An individual life insurance policy provision that gives the policyowner a stated period of time - usually 10 days - after the policy is delivered in which to examine the policy.
Incontestability provision - Answer- An insurance policy provision that describes the time limit within which the insurer has the right to avoid the contract on the ground of material misrepresentation in the application.
Misrepresenation - Answer- A false or misleading statement in an application for insurance.
Material misrepresentation - Answer- A misrepresentation that would affect an insurance company's evaluation of a proposed insured and, thus, gives the insurer grounds to avoid an insurance contract.
Fraudulent misrepresentation - Answer- A misrepresentation that was made with the intent to induce the other party to enter into a contract and that did induce the innocent party to enter into the contract.
Grace period provision - Answer- An insurance policy provision that specifies a length of time following each renewal premium due date within which the premium may be paid without loss of coverage.
Waiver of premium for disability benefit - Answer- A supplemental life insurance policy benefit under which the insurer promises to give up - to waive - its right to collect premiums that become due while the insured is totally disabled.
Waiver of premium for payor benefit - Answer- A supplemental life insurance policy benefit under which the insurer agrees to waive its right to collect a policy's renewal premiums if the policyowner dies or becomes totally disabled.
Disability income benefit - Answer- A supplemental life insurance policy benefit that provides a monthly income benefit to the policyowner-insured if he become totally disabled when the policy is in force.
Accidental death benefit - Answer- A supplemental life insurance policy benefit that provides a death benefit, in addition to the policy's basic death benefit, if the insured dies as a result of an accident.
Accidental death and dismemberment benefit - Answer- A supplemental life insurance policy benefit that provides an accidental death benefit and provides a dismemberment benefit payable if an accident causes the insured to lose any two limbs or sight in both eyes.
Accelerated death benefit - Answer- A supplemental life insurance policy benefit that gives a policyowner-insured the right to receive all or part of the policy's death benefit before her death, if certain conditions are met.
Terminal illness benefit - Answer- An accelerated death benefit under which the insurer pays a portion of a life insurance policy's death benefit to a policyowner-
insured who suffers from a terminal illness and has a physician-certified life expectancy of 12 months or less.
Dread disease benefit - Answer- An accidental death benefit under which the insurer agrees to pay a portion of the life insurance policy's face amount to the policyowner if
the insured suffers from one of a number of specified diseases.
Long term care insurance benefit - Answer- An accelerated death benefit under which the insurer agrees to pay a monthly benefit to a life insurance policyowner if the insured requires constant care for a medical condition.
Spouse and children's insurance rider - Answer- A supplemental life insurance policy
benefit that provides term life insurance coverage on the insured's spouse and children.
Children's insurance rider - Answer- A supplemental life insurance policy benefit that provides term life insurance coverage on the insured's children. Second insured rider - Answer- A supplemental life insurance policy benefit that provides term insurance coverage on the life of a person other than the policy's insured.
Guaranteed insurability benefit - Answer- A supplemental life insurance policy benefit
that gives the policyowner the right to purchase additional insurance of the same type as the basic life insurance policy - for an additional premium amount - on specified option dates during the life of the policy without supplying evidence of the insured's insurability.
Paid up additions option benefit - Answer- A supplemental life insurance policy benefit that allows the policyowner of a whole life insurance policy to purchase singe-
premium paid-up additions to the policy on stated dates in the future without providing evidence of the insured's insurability.
Entire contract provision - Answer- An insurance policy provision that defines the documents that constitute the contract between the insurance company and the policyowner.
Closed contract - Answer- A contract for which only those terms and conditions that are printed on - or attached to - the contract are considered to be part of the contract.
Open contract - Answer- A contract that identifies the documents that constitute the contract between the parties, but the enumerated documents are not all attached to the contract.
Free look provision - Answer- An individual life insurance policy provision that gives the policyowner a stated period of time - usually 10 days - after the policy is delivered in which to examine the policy.
Incontestability provision - Answer- An insurance policy provision that describes the time limit within which the insurer has the right to avoid the contract on the ground of material misrepresentation in the application.
Misrepresenation - Answer- A false or misleading statement in an application for insurance.
Material misrepresentation - Answer- A misrepresentation that would affect an insurance company's evaluation of a proposed insured and, thus, gives the insurer grounds to avoid an insurance contract.
Fraudulent misrepresentation - Answer- A misrepresentation that was made with the intent to induce the other party to enter into a contract and that did induce the innocent party to enter into the contract.
Grace period provision - Answer- An insurance policy provision that specifies a length of time following each renewal premium due date within which the premium may be paid without loss of coverage.
