©THEBRIGHT EXAM SOLUTIONS
11/06/2024 10:41 AM
Missouri Life and Health - Terms
Adverse Selection - answer✔insuring of 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
Applicant or proposed insured - answer✔a person applying for insurance
Beneficiary - answer✔a person who receives the benefits of an insurance policy
Death benefit - answer✔the amount paid upon the death of the insured in a life insurance
policy
Fraud - answer✔Intentional misrepresentation or deceit with the intent to induce a person to
part with something of value.
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✔person covered by the insurance policy; may or may not be the policy owner
Insurer (principal) - answer✔the company who issues an insurance policy
Lapse - answer✔policy termination due to nonpayment of premium
Life insurance - answer✔coverage on human lives
Policy-owner - 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
Attained age - answer✔the insured's age at the time the policy is issued or renewed
Cash value - answer✔a policy's savings element or living benefit
Face amount - answer✔the amount of benefit stated in the life insurance policy.
, ©THEBRIGHT EXAM SOLUTIONS
11/06/2024 10:41 AM
Fixed life insurance - answer✔contracts that offer guaranteed minimum or fixed benefits
Deferred - answer✔withheld or postponed until a specified time or event in the future
Endow - answer✔the cash value of a whole life policy has reached the contractual face amount
Level premium - answer✔the premium that does not change throughout the life of a policy
Liquidation of an estate - answer✔converting a person's net worth into a cash flow
Nonforfeiture Values - answer✔benefits in a life insurance policy that the policyowner cannot
lose even if the policy is surrendered or lapses
Policy maturity - answer✔in life policies, the time when the face value is paid out
Qualified plan - answer✔A retirement plan that meets the IRS guidelines for receiving favorable
tax treatment.
Securities - answer✔financial instruments that may trade for value (for example, stocks, bonds,
options)
Suitability - answer✔a requirement to determine if an insurance product is appropriate for a
customer
Variable Life Insurance - answer✔contracts in which the cash values accumulate based upon a
specific portfolio of stocks without guarantees of performance
activities of daily living (ADLs) - answer✔a person's essential activities that include bathing,
dressing, eating, transferring, toileting, continence
Assignment - answer✔transfer of rights of policy ownership
Consideration - answer✔something of value that each party gives to the other (binding force in
any contract)
Indemnity - answer✔a principle of reimbursement on which insurance is based; in the event of
loss, an insurer reimburses the insureds or beneficiaries for the loss
Lump sum - answer✔payment of the entire benefit in one sum
Minor - answer✔a person under legal age
NAIC - answer✔National Association of Insurance Commissioners, an organization composed of
insurance commissioners from all 50 states, the District of Columbia and the 4 U.S territories,
formed to resolve insurance regulatory issues.
11/06/2024 10:41 AM
Missouri Life and Health - Terms
Adverse Selection - answer✔insuring of 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
Applicant or proposed insured - answer✔a person applying for insurance
Beneficiary - answer✔a person who receives the benefits of an insurance policy
Death benefit - answer✔the amount paid upon the death of the insured in a life insurance
policy
Fraud - answer✔Intentional misrepresentation or deceit with the intent to induce a person to
part with something of value.
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✔person covered by the insurance policy; may or may not be the policy owner
Insurer (principal) - answer✔the company who issues an insurance policy
Lapse - answer✔policy termination due to nonpayment of premium
Life insurance - answer✔coverage on human lives
Policy-owner - 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
Attained age - answer✔the insured's age at the time the policy is issued or renewed
Cash value - answer✔a policy's savings element or living benefit
Face amount - answer✔the amount of benefit stated in the life insurance policy.
, ©THEBRIGHT EXAM SOLUTIONS
11/06/2024 10:41 AM
Fixed life insurance - answer✔contracts that offer guaranteed minimum or fixed benefits
Deferred - answer✔withheld or postponed until a specified time or event in the future
Endow - answer✔the cash value of a whole life policy has reached the contractual face amount
Level premium - answer✔the premium that does not change throughout the life of a policy
Liquidation of an estate - answer✔converting a person's net worth into a cash flow
Nonforfeiture Values - answer✔benefits in a life insurance policy that the policyowner cannot
lose even if the policy is surrendered or lapses
Policy maturity - answer✔in life policies, the time when the face value is paid out
Qualified plan - answer✔A retirement plan that meets the IRS guidelines for receiving favorable
tax treatment.
Securities - answer✔financial instruments that may trade for value (for example, stocks, bonds,
options)
Suitability - answer✔a requirement to determine if an insurance product is appropriate for a
customer
Variable Life Insurance - answer✔contracts in which the cash values accumulate based upon a
specific portfolio of stocks without guarantees of performance
activities of daily living (ADLs) - answer✔a person's essential activities that include bathing,
dressing, eating, transferring, toileting, continence
Assignment - answer✔transfer of rights of policy ownership
Consideration - answer✔something of value that each party gives to the other (binding force in
any contract)
Indemnity - answer✔a principle of reimbursement on which insurance is based; in the event of
loss, an insurer reimburses the insureds or beneficiaries for the loss
Lump sum - answer✔payment of the entire benefit in one sum
Minor - answer✔a person under legal age
NAIC - answer✔National Association of Insurance Commissioners, an organization composed of
insurance commissioners from all 50 states, the District of Columbia and the 4 U.S territories,
formed to resolve insurance regulatory issues.
