IDAHO LIFE INSURANCE EXAM STUDY GUIDE WITH COMPLETE SOLUTION!!

IDAHO LIFE INSURANCE EXAM STUDY GUIDE
WITH COMPLETE SOLUTION!!
Accelerated Benefits

answers: Riders attached to life insurance policies that allow death benefits to be
used to cover nursing or convalescent home expenses.

Accidental Death Benefits



answers: 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



answers: An insurance policy that provides payment if the insured's death is the
result of the accident.

Accumulation Period



answers: The time before an annuitant's retirement during which the annuitant is
making payments or investments in an annuity.

Acquired Immunodeficiency Syndrome (AIDS)



answers: An infections and incurable disease caused by the human
immunodeficiency virus (HIV).

Actual Cash Value (ACV)



answers: 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



answers: 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



answers: Life insurance that permits changed in the face amount, premium
amount, period of protection, and the duration of the premium payment period.

Adjuster



answers: A representative of an insurance company who investigates and acts on
behalf of the company to obtain agreements for the amount of the insurance claim.

Administrator



answers: An individual appointed by a court as a fiduciary to settle the financial
affairs and estate of a deceased person.

Admitted (Authorized) Insurer



answers: An insurance company authorized and licensed to transact business in a
particular state.

Adult Day Care



answers: A program for impaired adults that attempts to meet their health, social,
and functional needs in a setting away from their homes.

,Adverse Selection



answers: The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.

Agency



answers: An insurance sales office or company.

Agent



answers: An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.

Agent Appointment



answers: The authorization of an agent to act for or represent an insurer.

Agent's Authority



answers: Special powers granted to an agent by his or her agency contract.

Aleatory



answers: 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 the the amount the insurer will pay in the event of a loss.

Alien Insurer

, answers: An insurance company that is incorporated outside the United States.

Annual Statement



answers: A detailed financial report that an insurance company must submit every
year to the insurance department of state in which it conducts business.

Annuity



answers: A contract that provides income for a specified period of years, or for
life.

Apparent Authority



answers: The appearance of the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances of the principal
created.

Applicant



answers: A person making applications for, or offering himself, herself or another
to be insured under an insurance contract.

Appication



answers: A document that provides information for underwriting purposes. After
the policy is issued, any unanswered questions are considered waived by the
insurer.

Assignment