VA Life Annuities and Health Insurance
Exam Vocab
Absolute Assignment - *answers *The transfer of all a policy owner's rights irrevocably
to another party
Accelerated Death Benefit - *answers *A life insurance rider or provision under which a
distribution of the death benefit during the insured's lifetime may be made under
conditions specified in the rider. The provisions of the benefit generally require that the
insured be terminally ill in order to be eligible for payment
Accidental Bodily Injury - *answers *A policy definition that requires that the bodily
injury be accidental in order for the policy to pay benefits, but does not require that an
accident caused the bodily injury in order for the policy to pay benefits
Accidental Death and Dismemberment (AD&D) - *answers *Policy or rider that provides
lump sum insurance coverage for an accidental death or loss of a certain body part
Activities of Daily Living (ADL) - *answers *Normal everyday activities which include
eating, bathing, dressing, mobility, transferring, toileting, and continence. Inability to
perform these activities is considered a trigger for needing long term care
Acute Conditions - *answers *short term illnesses or injuries which develop rapidly and
require intense treatment, such as x-rays or surgery
Adhesion - *answers *a legal term referring to the type of contractual agreement found
in life insurance policies. Life insurance contracts are not negotiable. The life insurance
company draws up the contract and the policy owner must adhere to terms
Adjustable life insurance - *answers *A form of whole life insurance which allows
changes on the policy face amount, premium and period of protection
Administrative Expense - *answers *Covers things like producing annual statements,
processing customer service changes on the contract, providing ongoing customer
service, etc. Some expenses may be charged directly to the policyholder like if the
policyholder exceeds a specified number of transfers
Agent - *answers *Has authority to solicit insurance; represents the insurance company
but acts in the best interest of the company and the policy owner
Agency - *answers *the relationship between the insurance company and the agent
Aleatory Contract - *answers *a contract that is conditioned on an uncertain event. the
insurer's promise to pay the policy proceeds is conditioned upon the uncertain event of
death
, VA Life Annuities and Health Insurance
Exam Vocab
Alien insurer - *answers *an insurer that is formed and domiciled outside of the United
States and transact insurance business in state
Annual Reset Method - *answers *a return calculation method used in equity-indexed
products where index value at the beginning of the year is compared to the value at the
end of the year. Declines are ignored when the calculation results in a negative number;
0% is the least amount credited
Annuitant - *answers *The party on an annuity contract.
Annuitizaton - *answers *conversion of annuity contract values to an irrevocable stream
of income payments
Any gainful occupation - *answers *a definition in a disability income insurance policy
that pays benefits when an insured is unable to work in any occupation that pays
compensation. not the same as "own occupation"
Attained age - *answers *the age an insured has reached on a given date
Automatic premium loan - *answers *a provision in the policy or rider added authorizing
the insurance company to use the loan value to pay any premium not paid by the end of
the grace period
Base Rate - *answers *normal crediting rate on cash values
Beneficiary - *answers *The party receiving proceeds at the death of an insured on a
life insurance or health insurance policy. this term may also mean the person to be the
recipient of a participants retirement benefits at the participants death
Banded method of investing - *answers *a method of interest rate determination. the
insurer tracks the return of investments purchased with premiums from contracts
opened within the same period of time. AKA bucket method
Bonus Rate - *answers *a rate paid on cash values that is greater than the normal
crediting rate (base)
Business Overhead Expense Insurance (BOE) - *answers *A form of disability income
insurance that is specifically designed to pay benefits based on business overhead
expenses. Helps protect business if key employee is disabled and it would be hard to
pay overhead expenses
Exam Vocab
Absolute Assignment - *answers *The transfer of all a policy owner's rights irrevocably
to another party
Accelerated Death Benefit - *answers *A life insurance rider or provision under which a
distribution of the death benefit during the insured's lifetime may be made under
conditions specified in the rider. The provisions of the benefit generally require that the
insured be terminally ill in order to be eligible for payment
Accidental Bodily Injury - *answers *A policy definition that requires that the bodily
injury be accidental in order for the policy to pay benefits, but does not require that an
accident caused the bodily injury in order for the policy to pay benefits
Accidental Death and Dismemberment (AD&D) - *answers *Policy or rider that provides
lump sum insurance coverage for an accidental death or loss of a certain body part
Activities of Daily Living (ADL) - *answers *Normal everyday activities which include
eating, bathing, dressing, mobility, transferring, toileting, and continence. Inability to
perform these activities is considered a trigger for needing long term care
Acute Conditions - *answers *short term illnesses or injuries which develop rapidly and
require intense treatment, such as x-rays or surgery
Adhesion - *answers *a legal term referring to the type of contractual agreement found
in life insurance policies. Life insurance contracts are not negotiable. The life insurance
company draws up the contract and the policy owner must adhere to terms
Adjustable life insurance - *answers *A form of whole life insurance which allows
changes on the policy face amount, premium and period of protection
Administrative Expense - *answers *Covers things like producing annual statements,
processing customer service changes on the contract, providing ongoing customer
service, etc. Some expenses may be charged directly to the policyholder like if the
policyholder exceeds a specified number of transfers
Agent - *answers *Has authority to solicit insurance; represents the insurance company
but acts in the best interest of the company and the policy owner
Agency - *answers *the relationship between the insurance company and the agent
Aleatory Contract - *answers *a contract that is conditioned on an uncertain event. the
insurer's promise to pay the policy proceeds is conditioned upon the uncertain event of
death
, VA Life Annuities and Health Insurance
Exam Vocab
Alien insurer - *answers *an insurer that is formed and domiciled outside of the United
States and transact insurance business in state
Annual Reset Method - *answers *a return calculation method used in equity-indexed
products where index value at the beginning of the year is compared to the value at the
end of the year. Declines are ignored when the calculation results in a negative number;
0% is the least amount credited
Annuitant - *answers *The party on an annuity contract.
Annuitizaton - *answers *conversion of annuity contract values to an irrevocable stream
of income payments
Any gainful occupation - *answers *a definition in a disability income insurance policy
that pays benefits when an insured is unable to work in any occupation that pays
compensation. not the same as "own occupation"
Attained age - *answers *the age an insured has reached on a given date
Automatic premium loan - *answers *a provision in the policy or rider added authorizing
the insurance company to use the loan value to pay any premium not paid by the end of
the grace period
Base Rate - *answers *normal crediting rate on cash values
Beneficiary - *answers *The party receiving proceeds at the death of an insured on a
life insurance or health insurance policy. this term may also mean the person to be the
recipient of a participants retirement benefits at the participants death
Banded method of investing - *answers *a method of interest rate determination. the
insurer tracks the return of investments purchased with premiums from contracts
opened within the same period of time. AKA bucket method
Bonus Rate - *answers *a rate paid on cash values that is greater than the normal
crediting rate (base)
Business Overhead Expense Insurance (BOE) - *answers *A form of disability income
insurance that is specifically designed to pay benefits based on business overhead
expenses. Helps protect business if key employee is disabled and it would be hard to
pay overhead expenses
