Life Insurance License Exam Latest Version Graded A+

Life Insurance License Exam Latest Version Graded A+ Accelerated Benefits Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses. Accidental Death Benefits A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death. Accidental Death Insurance An insurance policy that provides payment if the insured's death is the result of an accident. Accumulation Period The time before an annuitant's retirement during which the annuitant is making payments or investments in an annuity. Actual Cash Value (ACV) The required amount to pay damages or for property loss. This amount is calculated based on the property's current replacement value minus depreciation. Adhesion A contract offered on a "take-it-or leave-it" basis by an insurer, in which the insured's only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Adjustable Life Life insurance that permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period. Adjuster A representative of an insurance company who investigated and acts on the behalf of the company to obtain agreements for the amount of the insurance claim. Administrator An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person. Admitted (Authorized) Insurer An insurance company authorized and licensed to transact business in a particular state. Adverse Selection The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agency An insurance sales office or company. Agent An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the insurer. Agent Appointment The authorization of an agent to act for or represent an insurer. Agent's Authority Special powers granted to an agent by his or her agency contract. Aleatory A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss. Alien Insurer An insurance company that is incorporated outside the United States. Annual Statement A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business. Annuity A contract that provides income for a specified period of years, or for life. Apparent Authority The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances