Mississippi Life and Health
Insurance solution manual
Absolute assignment - answer ✅✅Policy assignment under which the assignee
(person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally,
when a policy is assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though
the assignment is absolute in
form. (See assignment)
Accelerated benefits rider - answer ✅✅A life insurance rider that allows for the
early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - answer ✅✅(See offer and acceptance)
,Accidental bodily injury provision - answer ✅✅Disability income or accident
policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - answer ✅✅Insurance providing
payment if the insured's death results
from an accident, if the insured accidentally severs a limb above the wrist or ankle
joints, or totally and irreversibly
Accidental death benefit rider - answer ✅✅A life insurance policy rider providing
for payment of an additional benefit
when death occurs by accidental means.
Accidental dismemberment - answer ✅✅Often defined as "the severance of limbs
at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be
considered dismemberment.
Accidental means provision - answer ✅✅Unforeseen, unexpected, unintended
cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for any
claim to be payable.
Accident and health insurance - answer ✅✅Under which benefits are payable in
case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance, and
sickness and accident insurance.
,Accumulation unit - answer ✅✅Premiums an annuitant pays into annuities are
credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - answer ✅✅A life-threatening
condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and claims
guidelines in regard to AIDS risks
and AIDS-related conditions.
Acute illness - answer ✅✅A serious condition, such as pneumonia, from which
the body can fully recover with proper
medical attention.
Adhesion - answer ✅✅A life insurance policy is a contract of adhesion because
buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates,
values, and so on.
Adjustable life insurance - answer ✅✅Combines features of both term and whole
life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be
increased or decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - answer ✅✅Arrangement under which
an insurance company or an
, independent organization, for a fee, handles the administration of claims, benefits,
and other administrative
functionsfor a self-insured group.
Admitted insurer - answer ✅✅An insurance company that has met the legal and
financial requirements for operation within
a given state.
Adult day care - answer ✅✅Type of care (usually custodial) designed for
individuals who require assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care
centers.
Adverse selection - answer ✅✅Selection "against the company." Tendency of less
favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy
owners to take advantage of favorable
options in insurance contracts.
Advertising Code - answer ✅✅Rules established by the National Association of
Insurance Commissioners (NAIC) to
regulate insurance advertising.
Agency - answer ✅✅Situation wherein one party (an agent) has the power to act
for another (the principal) i n dealing
with third parties.
Insurance solution manual
Absolute assignment - answer ✅✅Policy assignment under which the assignee
(person to whom the policy is assigned)
receives full control over the policy and also full rights to its benefits. Generally,
when a policy is assigned to secure
a debt, the owner retains all rights in the policy in excess of the debt, even though
the assignment is absolute in
form. (See assignment)
Accelerated benefits rider - answer ✅✅A life insurance rider that allows for the
early payment of some portion of the
policies face amount should the insured suffers from a terminal i l l n e s s or injury.
Acceptance - answer ✅✅(See offer and acceptance)
,Accidental bodily injury provision - answer ✅✅Disability income or accident
policy provision that requires that the injury
be accidental in order for benefits to be payable.
Accidental death and dismemberment (AD&D) - answer ✅✅Insurance providing
payment if the insured's death results
from an accident, if the insured accidentally severs a limb above the wrist or ankle
joints, or totally and irreversibly
Accidental death benefit rider - answer ✅✅A life insurance policy rider providing
for payment of an additional benefit
when death occurs by accidental means.
Accidental dismemberment - answer ✅✅Often defined as "the severance of limbs
at or above the wrists or ankle
joints, or the entire irrevocable loss of sight." Loss of use in itself may or not be
considered dismemberment.
Accidental means provision - answer ✅✅Unforeseen, unexpected, unintended
cause of an accident. Requirement of an
accident-based policy that the cause of the mishap must be accidental for any
claim to be payable.
Accident and health insurance - answer ✅✅Under which benefits are payable in
case of disease, accidental injury, or
accidental death. Also called health insurance, personal health insurance, and
sickness and accident insurance.
,Accumulation unit - answer ✅✅Premiums an annuitant pays into annuities are
credited as accumulation units. At the end of
the accumulation period, accumulation units are converted to annuity units.
Acquired immune deficiency syndrome (AIDS) - answer ✅✅A life-threatening
condition brought on by the human
immunodeficiency virus; insurers must adhere to strict underwriting and claims
guidelines in regard to AIDS risks
and AIDS-related conditions.
Acute illness - answer ✅✅A serious condition, such as pneumonia, from which
the body can fully recover with proper
medical attention.
Adhesion - answer ✅✅A life insurance policy is a contract of adhesion because
buyers must adhere to the terms of the
contract already in existence. They have no opportunity to negotiate terms, rates,
values, and so on.
Adjustable life insurance - answer ✅✅Combines features of both term and whole
life coverage with the length of coverage
and amount of accumulated cash value as the adjustable factors. Premiums may be
increased or decreased to fit the
specific needs. Such adjustments are not retroactive and apply only to the future.
Administrative-services-only (ASO) Plan - answer ✅✅Arrangement under which
an insurance company or an
, independent organization, for a fee, handles the administration of claims, benefits,
and other administrative
functionsfor a self-insured group.
Admitted insurer - answer ✅✅An insurance company that has met the legal and
financial requirements for operation within
a given state.
Adult day care - answer ✅✅Type of care (usually custodial) designed for
individuals who require assistance with various
activities of daily living, while their primary caregivers are absent. Offered in care
centers.
Adverse selection - answer ✅✅Selection "against the company." Tendency of less
favorable insurance risks to seek or
continue insurance to a greater extent than others. Also, tendency of policy
owners to take advantage of favorable
options in insurance contracts.
Advertising Code - answer ✅✅Rules established by the National Association of
Insurance Commissioners (NAIC) to
regulate insurance advertising.
Agency - answer ✅✅Situation wherein one party (an agent) has the power to act
for another (the principal) i n dealing
with third parties.
