LIFE ACCIDENT INSURANCE LATEST EXAM WITH
COMPLETE SOLUTION
401(k) Plan - answerCODA plan in which plan participants make
contributions via salary reductions, cash bonuses or thrift plans.
403(b) Tax-sheltered Annuity - answer401(k) plan for employees of nonprofit
organizations and public schools.
408(k) Plan - answerQualified plans for small employers. A mix of an IRA and
profit-sharing plan. More commonly referred to as a SEP.
Absolute - answerAn absolute assignment occurs when the policyowner
assigns all rights including cash values to another person or entity.
Synonymous with voluntary assignment.
Absolute Value - answerA medical expense plan that pays a fixed maximum
dollar amount for a procedure.
Accelerated Benefit Rider - answerLife insurance rider which allows the
insured to receive a portion of the death benefit prior to death if the insured
has a terminal illness.
Accidental Bodily Injury - answerDefinition of accident in which the injury is
unintentional and unexpected. Policies using this definition cover all injuries
except self-inflicted injuries.
Accidental Death and Dismemberment (AD&D) - answerStandalone accident-only
policy which only pays benefits if an insured dies or has a dismembered body
part as a result of an accident.
Accidental Death and Dismemberment (AD&D) Rider - answerPays a lump-sum
benefit for death, loss of limbs, or blindness. Identical to the standalone AD&D
policy.
,Accidental Death and Dismemberment Rider - answerLife insurance rider which
pays an additional sum, termed the principal sum, to the beneficiary if the insured
dies due to an accident. Also applies to accidental death and dismemberment
policies in which the policy will pay double or triple the benefit based on
dismemberment or death. Synonymous with multiple indemnity rider.
Accidental Injury - answerAn unforeseen and unintentional bodily injury
resulting from an accident.
Accidental Means - answerRestrictive definition of accident in which the cause
of the accident must be unintentional and unexpected.
Accumulation at Interest - answerDividend option in which the insurer retains the
dividend to be invested.
Accumulation Period - answerThe pay-in period of an annuity during which the
contract owner pays premiums. Synonymous with accumulation phase.
Accumulation Phase - answerThe pay-in period of an annuity during which the
contract owner pays premiums. Synonymous with accumulation period.
Accumulation Units - answerA variable annuity contract owner's interest in the
separate account prior to annuitization.
Activities of Daily Living (ADLs) - answerFunctions of everyday life allowing an
individual to maintain independence. ADLs include bathing, dressing, eating,
mobility, transferring, personal hygiene, toileting, and continence.
Actual Charge - answerA physician's or medical provider's actual bill for
services rendered (Medicare).
,Actuaries - answerMathematicians employed by insurers to collect and analyze risk
data.
Additional Monthly Benefit (AMB) - answerDisability income policy rider that
pays disability income benefits during the Social Security waiting period.
Adjustable Life - answerMix of whole and term insurance. The policyowner
can modify the premium, face amount, coverage period, and premium-paying
period.
Adjusters - answerInvestigate losses and determine payment of claims.
Administrative Services Only - answerIn group health insurance, a group policy is
self-funded and the insurer is subcontracted only to process claims.
Admitted Insurers - answerInsurers authorized to transact insurance by holding a
certificate of authority in a particular state, district or commonwealth;
synonymous with authorized insurers.
Adult Day Care - answerCare provided to an individual who does not need 24-hour
care. Adult day care may be provided in the home or at an adult day care facility.
Advance Beneficiary Notice - answerProvided to individuals by their medical
providers stating which medical services Medicare will not or probably will not
cover.
Adverse Selection - answerTendency for poorer than average risks to seek
insurance.
Age Discrimination in Employment Act (ADEA) - answerInsurance distribution
system that uses producers to transact insurance.
Agent Report - answerPart III of the application, also referred to as the producer's
, report. The
COMPLETE SOLUTION
401(k) Plan - answerCODA plan in which plan participants make
contributions via salary reductions, cash bonuses or thrift plans.
403(b) Tax-sheltered Annuity - answer401(k) plan for employees of nonprofit
organizations and public schools.
408(k) Plan - answerQualified plans for small employers. A mix of an IRA and
profit-sharing plan. More commonly referred to as a SEP.
Absolute - answerAn absolute assignment occurs when the policyowner
assigns all rights including cash values to another person or entity.
Synonymous with voluntary assignment.
Absolute Value - answerA medical expense plan that pays a fixed maximum
dollar amount for a procedure.
Accelerated Benefit Rider - answerLife insurance rider which allows the
insured to receive a portion of the death benefit prior to death if the insured
has a terminal illness.
Accidental Bodily Injury - answerDefinition of accident in which the injury is
unintentional and unexpected. Policies using this definition cover all injuries
except self-inflicted injuries.
Accidental Death and Dismemberment (AD&D) - answerStandalone accident-only
policy which only pays benefits if an insured dies or has a dismembered body
part as a result of an accident.
Accidental Death and Dismemberment (AD&D) Rider - answerPays a lump-sum
benefit for death, loss of limbs, or blindness. Identical to the standalone AD&D
policy.
,Accidental Death and Dismemberment Rider - answerLife insurance rider which
pays an additional sum, termed the principal sum, to the beneficiary if the insured
dies due to an accident. Also applies to accidental death and dismemberment
policies in which the policy will pay double or triple the benefit based on
dismemberment or death. Synonymous with multiple indemnity rider.
Accidental Injury - answerAn unforeseen and unintentional bodily injury
resulting from an accident.
Accidental Means - answerRestrictive definition of accident in which the cause
of the accident must be unintentional and unexpected.
Accumulation at Interest - answerDividend option in which the insurer retains the
dividend to be invested.
Accumulation Period - answerThe pay-in period of an annuity during which the
contract owner pays premiums. Synonymous with accumulation phase.
Accumulation Phase - answerThe pay-in period of an annuity during which the
contract owner pays premiums. Synonymous with accumulation period.
Accumulation Units - answerA variable annuity contract owner's interest in the
separate account prior to annuitization.
Activities of Daily Living (ADLs) - answerFunctions of everyday life allowing an
individual to maintain independence. ADLs include bathing, dressing, eating,
mobility, transferring, personal hygiene, toileting, and continence.
Actual Charge - answerA physician's or medical provider's actual bill for
services rendered (Medicare).
,Actuaries - answerMathematicians employed by insurers to collect and analyze risk
data.
Additional Monthly Benefit (AMB) - answerDisability income policy rider that
pays disability income benefits during the Social Security waiting period.
Adjustable Life - answerMix of whole and term insurance. The policyowner
can modify the premium, face amount, coverage period, and premium-paying
period.
Adjusters - answerInvestigate losses and determine payment of claims.
Administrative Services Only - answerIn group health insurance, a group policy is
self-funded and the insurer is subcontracted only to process claims.
Admitted Insurers - answerInsurers authorized to transact insurance by holding a
certificate of authority in a particular state, district or commonwealth;
synonymous with authorized insurers.
Adult Day Care - answerCare provided to an individual who does not need 24-hour
care. Adult day care may be provided in the home or at an adult day care facility.
Advance Beneficiary Notice - answerProvided to individuals by their medical
providers stating which medical services Medicare will not or probably will not
cover.
Adverse Selection - answerTendency for poorer than average risks to seek
insurance.
Age Discrimination in Employment Act (ADEA) - answerInsurance distribution
system that uses producers to transact insurance.
Agent Report - answerPart III of the application, also referred to as the producer's
, report. The
