LIFE INSURANCE TERMS EXAM GRADED A+ 100% VERIFIED.
Accelerated benefits rider ANS >> may be added to a life insurance
policy that permits the policy owner to "accelerate" or receive a
certain percentage of the death benefit while the insured is still
alive when he or she has been diagnosed with a terminal illness.
Whatever amount is paid to the owner under the rider is
subtracted form the face amount when death occurs and the
remainder is paid to the designated beneficiary
Accident ANS >> an unforeseen, unintended, unexpected event, or
fortuitous event that causes death, injury or damage
Accidental Death and Dismemberment Insurance ANS >> a form of
insurance affording benefits in the event of accidental death;
the accidental loss of sight, speech or hearing; loss of use of
limbs (paralysis); or loss of member (arm or leg)
,Accidental Death Benefit ANS >> a lump sum payment for loss of
life due to an accident that was the direct cause of death. The
cause of cause of death must be accidental for a benefit to be
payable under the policy
Accumulation Period ANS >> the pay in period of an annuity during
which the contract owner receives tax deferral. During this
period the contract owner is referred to as the policyowner.
Once this period end, the annuity phase or the income phase
commences
Actuary ANS >> a person who calculate policy rates, reserves, and
dividends and makes other applicable statistical studies and
reports
Additional Premium ANS >> used in universal life policies. Can be
paid into the policy account in an amount above the target
premium. current tax laws limit the amount of excess cash value
that can be accumulated in a life insurance policy. The insurance
company may not accept the additional premium if it nears this
limit without increasing the limit of life insurance (subject to
underwriting)
,Address Change ANS >> most states require that a producer notify
the applicable regulatory department of any residence/business
address change. And if a producer legally changes his/her
name, notice of the change must be provided
Adverse Selection ANS >> the tendency of a disproportionate
number of poor risks to seek or buy insurance or maintain
existing insurance in force (the selection again the insurance
company). Sound underwriting reduces adverse selection
Age Based Penalty ANS >> when an individual prematurely
withdraws funds prior to age 59.5 from an annuity, a modified
endowment contract, or a qualified plan, he or she will be
assessing a 10% penalty. No such penalty will be assessed if the
distribution is made after this stipulated age
Age Change ANS >> the date halfway between bays when the age
of the applicant changes to the next higher age. With some
insurers, the age is based upon the applicant's age at his
nearest bay. In others, it is based upon the ages of his last bay
Agent ANS >> an authorized rep of an insurer who is licensed to
sell life insurance and annuity contracts. Represents the insurer
who sponsors him or her
, Alien Insurer ANS >> an insurer organized under the laws of a
country other than the US
Annuitant ANS >> the individual whose life the annuity is based. If
the annuity is paid out for a lifetime, the annuitant's age is used
to determine payments. The person who normally receives the
annuity payment, however, that may not or may not be the case
Annuitization ANS >> the period for which annuity benefits are
paid
Annuity ANS >> a contract bytown an insurer and owner affording
periodic income payments for a fixed period of time or during
the lifetime of an annuitant. May be defined as the systematic
reimbursement or liquidation of an estate
Annuity Certain ANS >> an annuity that provides a benefit
payment payable for a specialized length of time regardless of
whether the annuitant lives or dies
Annuity Surrender Charge ANS >> a fee charged by the insurance
company for a partial or full withdrawal of funds made during a
Accelerated benefits rider ANS >> may be added to a life insurance
policy that permits the policy owner to "accelerate" or receive a
certain percentage of the death benefit while the insured is still
alive when he or she has been diagnosed with a terminal illness.
Whatever amount is paid to the owner under the rider is
subtracted form the face amount when death occurs and the
remainder is paid to the designated beneficiary
Accident ANS >> an unforeseen, unintended, unexpected event, or
fortuitous event that causes death, injury or damage
Accidental Death and Dismemberment Insurance ANS >> a form of
insurance affording benefits in the event of accidental death;
the accidental loss of sight, speech or hearing; loss of use of
limbs (paralysis); or loss of member (arm or leg)
,Accidental Death Benefit ANS >> a lump sum payment for loss of
life due to an accident that was the direct cause of death. The
cause of cause of death must be accidental for a benefit to be
payable under the policy
Accumulation Period ANS >> the pay in period of an annuity during
which the contract owner receives tax deferral. During this
period the contract owner is referred to as the policyowner.
Once this period end, the annuity phase or the income phase
commences
Actuary ANS >> a person who calculate policy rates, reserves, and
dividends and makes other applicable statistical studies and
reports
Additional Premium ANS >> used in universal life policies. Can be
paid into the policy account in an amount above the target
premium. current tax laws limit the amount of excess cash value
that can be accumulated in a life insurance policy. The insurance
company may not accept the additional premium if it nears this
limit without increasing the limit of life insurance (subject to
underwriting)
,Address Change ANS >> most states require that a producer notify
the applicable regulatory department of any residence/business
address change. And if a producer legally changes his/her
name, notice of the change must be provided
Adverse Selection ANS >> the tendency of a disproportionate
number of poor risks to seek or buy insurance or maintain
existing insurance in force (the selection again the insurance
company). Sound underwriting reduces adverse selection
Age Based Penalty ANS >> when an individual prematurely
withdraws funds prior to age 59.5 from an annuity, a modified
endowment contract, or a qualified plan, he or she will be
assessing a 10% penalty. No such penalty will be assessed if the
distribution is made after this stipulated age
Age Change ANS >> the date halfway between bays when the age
of the applicant changes to the next higher age. With some
insurers, the age is based upon the applicant's age at his
nearest bay. In others, it is based upon the ages of his last bay
Agent ANS >> an authorized rep of an insurer who is licensed to
sell life insurance and annuity contracts. Represents the insurer
who sponsors him or her
, Alien Insurer ANS >> an insurer organized under the laws of a
country other than the US
Annuitant ANS >> the individual whose life the annuity is based. If
the annuity is paid out for a lifetime, the annuitant's age is used
to determine payments. The person who normally receives the
annuity payment, however, that may not or may not be the case
Annuitization ANS >> the period for which annuity benefits are
paid
Annuity ANS >> a contract bytown an insurer and owner affording
periodic income payments for a fixed period of time or during
the lifetime of an annuitant. May be defined as the systematic
reimbursement or liquidation of an estate
Annuity Certain ANS >> an annuity that provides a benefit
payment payable for a specialized length of time regardless of
whether the annuitant lives or dies
Annuity Surrender Charge ANS >> a fee charged by the insurance
company for a partial or full withdrawal of funds made during a
