1 Exampromax - Stuvia US
VA life insurance, health insurance, and
annuities exam. Glossary Questions and
Answers 100% Correct Answers Already
Graded A+
Q: A & H
Ans: accident and health
Q: absolute assignment
Exampromax - Stuvia US
Ans: assignment by the policy owner of all control and rights to a third party
Q: Accidental Death Insurance
Ans: A form of health insurance that provides payment, if death of the insured
results from accident. Accidental Death insurance is often combined with
Dismemberment insurance in a form called "Accidental Death &
Dismemberment (AD&D)"
Q: Accidental and Sickness
Ans: Insurance against bodily injury, disability, or death by accident or
accidental mean, or expense thereof, or against disability or expense resulting
from sickness, and the insurance relating thereto
Q: Accidental Means
Ans: The unexpected cause of an accidental bodily injury. Under an Accidental
Means definition, which is very restrictive, if you meant to do whatever caused
your injury, there is no coverage. Most health insurance policies cover Accidental
bodily injury, which is much broader, in that it covers accidental regardless of the
cause
Q: Accumulation at Interest Option
, 2 Exampromax - Stuvia US
Ans: A dividend or settlement option under which the policyholder allows his or
her dividends or policy proceeds to accumulate interest with the company.
Although the dividends or proceeds are not generally taxable, the interest earned
is.
Q: Actuary
Ans: One concerned with the application of probability and statistical theory to
insurance, utilizing the law of large numbers
Q: ADB
Ans: Accidental Death Benefit, also known as Double or Triple Indemnity. A
rider added to a life policy that will pay double the face amount if the insured dies
as a result of accident, generally within 90 days of the accident
Q: AD&D
Exampromax - Stuvia US
Ans: Accidental Death and Dismemberment insurance. A limited form of health
insurance that covers accidents only. It is the only type of health insurance that
covers death. AD&D policies do not follow the principle of Indemnity, in that
they pay in addition to any other coverage the insured has.
Q: Administrator
Ans: Person Appointed by a court to settle a deceased's estate, sometimes called
an executor
Q: Adverse Selection
Ans: Selection not in favor of the company. The tendency of poorer risks to
want insurance more often than standard risks. Adverse selection occurs when a
person who is already sick purchases health insurance
Q: Adverse Underwriting decisions, consumer rights
Ans: Under the fair credit reporting act, when an adverse underwriting title is
made, an individual has 90 business days within which to request information in
writing. upon receipt of the written request, the institution or producer must
furnish, within 21 business days, specific reason for the adverse decision and the
names and addresses of the sources that provided that decision
Q: Affordable Care Act
, 3 Exampromax - Stuvia US
Ans: Signed into law on March 23, 2010, the patient protection and affordable
care act (ACA or obamacare) represents a fundamental shift in the area of
medical expense policies. a controversial law, the ACA is designed to enable all
US citizens the ability to purchase health insurance regardless of their health
status. The ACA also eliminates annual limits, lifetime limits, and describes
"essential coverage benefits" that all medical expense policies must cover.
Q: Agent/ producer
Ans: the individual appointed by an insurance company to solicit and negotiate
insurance contracts on its behalf. Agent or producers represent the company, not
the client
Q: alien company
Ans: an insurer organized and domiciled in any country other than the united
states
Exampromax - Stuvia US
Q: Annuitant
Ans: the party receiving benefits of an annuity, similar to the insured on an
insurance policy. the annuitant usually also owns the annuity, although you can
buy an annuity to benefit another party, who would then be the annuitant
Q: annuity
Ans: 1) an amount of money payable yearly or at other regular intervals
2) an agreement by an insurer to make periodic payments that continue during
the lifetime of the annuitant(s) or for a specified period. Considered to be the
opposite of life insurance, since annuities pay while you're alive. Life insurance
proceeds create an estate, while annuities are used to liquidate a estate over a
period of time. All annuities are insurance products and a life insurance license is
required
Q: Applicant
Ans: the party making application to the insurance company for the policy.
applicants must provide the insurer with the truth to the best of their knowledge,
which is known as a "representation"
Q: application
, 4 Exampromax - Stuvia US
Ans: a form on which the prospective insured states facts requested by the
insurer and on the basis of which (together with any information from medical
examiners, attending physicians, hospitals, investigators, and the producer) the
insurer decides whether or not to accept the risk, modify the coverage offered, or
decline the risk
Q: assignee
Ans: the person to whom policy rights are assigned in a whole or in part by the
policy owner, who is known as the assignor. on life insurance there are two types
of assignment: absolute and collateral
Q: assignment
Ans: transfer of rights in a policy to another party by the policyholder. for
example, you bought a life insurance policy on a minor child, you are the owner
and the child is insured. when the child reaches 21, you could assign all rights of
ownership in the policy to the child. this is an absolute assignment
Exampromax - Stuvia US
Q: attained age
Ans: the present age of the insured. upon conversion, premiums are based on the
current age of the insured
Q: attorney-in-fact
Ans: a person to whom authorization is given by an individual to exchange
insurance with other persons. always present in a reciprocal insurance company
Q: authorized company
Ans: an insurer permitted to sell insurance within a state. must obtain a
certificate of authority from the director (insurance comissioner) from every state
they sell in
Q: automatic premium loan
Ans: a rider in a life policy authorizing the insurance company to use the cash
value to pay premiums not paid by the end of the grace period. May be present in
Whole life or endowment policies only, never term since term has no cash value.
this rider is free, but must be selected by the policy owner
Q: aviation clause
VA life insurance, health insurance, and
annuities exam. Glossary Questions and
Answers 100% Correct Answers Already
Graded A+
Q: A & H
Ans: accident and health
Q: absolute assignment
Exampromax - Stuvia US
Ans: assignment by the policy owner of all control and rights to a third party
Q: Accidental Death Insurance
Ans: A form of health insurance that provides payment, if death of the insured
results from accident. Accidental Death insurance is often combined with
Dismemberment insurance in a form called "Accidental Death &
Dismemberment (AD&D)"
Q: Accidental and Sickness
Ans: Insurance against bodily injury, disability, or death by accident or
accidental mean, or expense thereof, or against disability or expense resulting
from sickness, and the insurance relating thereto
Q: Accidental Means
Ans: The unexpected cause of an accidental bodily injury. Under an Accidental
Means definition, which is very restrictive, if you meant to do whatever caused
your injury, there is no coverage. Most health insurance policies cover Accidental
bodily injury, which is much broader, in that it covers accidental regardless of the
cause
Q: Accumulation at Interest Option
, 2 Exampromax - Stuvia US
Ans: A dividend or settlement option under which the policyholder allows his or
her dividends or policy proceeds to accumulate interest with the company.
Although the dividends or proceeds are not generally taxable, the interest earned
is.
Q: Actuary
Ans: One concerned with the application of probability and statistical theory to
insurance, utilizing the law of large numbers
Q: ADB
Ans: Accidental Death Benefit, also known as Double or Triple Indemnity. A
rider added to a life policy that will pay double the face amount if the insured dies
as a result of accident, generally within 90 days of the accident
Q: AD&D
Exampromax - Stuvia US
Ans: Accidental Death and Dismemberment insurance. A limited form of health
insurance that covers accidents only. It is the only type of health insurance that
covers death. AD&D policies do not follow the principle of Indemnity, in that
they pay in addition to any other coverage the insured has.
Q: Administrator
Ans: Person Appointed by a court to settle a deceased's estate, sometimes called
an executor
Q: Adverse Selection
Ans: Selection not in favor of the company. The tendency of poorer risks to
want insurance more often than standard risks. Adverse selection occurs when a
person who is already sick purchases health insurance
Q: Adverse Underwriting decisions, consumer rights
Ans: Under the fair credit reporting act, when an adverse underwriting title is
made, an individual has 90 business days within which to request information in
writing. upon receipt of the written request, the institution or producer must
furnish, within 21 business days, specific reason for the adverse decision and the
names and addresses of the sources that provided that decision
Q: Affordable Care Act
, 3 Exampromax - Stuvia US
Ans: Signed into law on March 23, 2010, the patient protection and affordable
care act (ACA or obamacare) represents a fundamental shift in the area of
medical expense policies. a controversial law, the ACA is designed to enable all
US citizens the ability to purchase health insurance regardless of their health
status. The ACA also eliminates annual limits, lifetime limits, and describes
"essential coverage benefits" that all medical expense policies must cover.
Q: Agent/ producer
Ans: the individual appointed by an insurance company to solicit and negotiate
insurance contracts on its behalf. Agent or producers represent the company, not
the client
Q: alien company
Ans: an insurer organized and domiciled in any country other than the united
states
Exampromax - Stuvia US
Q: Annuitant
Ans: the party receiving benefits of an annuity, similar to the insured on an
insurance policy. the annuitant usually also owns the annuity, although you can
buy an annuity to benefit another party, who would then be the annuitant
Q: annuity
Ans: 1) an amount of money payable yearly or at other regular intervals
2) an agreement by an insurer to make periodic payments that continue during
the lifetime of the annuitant(s) or for a specified period. Considered to be the
opposite of life insurance, since annuities pay while you're alive. Life insurance
proceeds create an estate, while annuities are used to liquidate a estate over a
period of time. All annuities are insurance products and a life insurance license is
required
Q: Applicant
Ans: the party making application to the insurance company for the policy.
applicants must provide the insurer with the truth to the best of their knowledge,
which is known as a "representation"
Q: application
, 4 Exampromax - Stuvia US
Ans: a form on which the prospective insured states facts requested by the
insurer and on the basis of which (together with any information from medical
examiners, attending physicians, hospitals, investigators, and the producer) the
insurer decides whether or not to accept the risk, modify the coverage offered, or
decline the risk
Q: assignee
Ans: the person to whom policy rights are assigned in a whole or in part by the
policy owner, who is known as the assignor. on life insurance there are two types
of assignment: absolute and collateral
Q: assignment
Ans: transfer of rights in a policy to another party by the policyholder. for
example, you bought a life insurance policy on a minor child, you are the owner
and the child is insured. when the child reaches 21, you could assign all rights of
ownership in the policy to the child. this is an absolute assignment
Exampromax - Stuvia US
Q: attained age
Ans: the present age of the insured. upon conversion, premiums are based on the
current age of the insured
Q: attorney-in-fact
Ans: a person to whom authorization is given by an individual to exchange
insurance with other persons. always present in a reciprocal insurance company
Q: authorized company
Ans: an insurer permitted to sell insurance within a state. must obtain a
certificate of authority from the director (insurance comissioner) from every state
they sell in
Q: automatic premium loan
Ans: a rider in a life policy authorizing the insurance company to use the cash
value to pay premiums not paid by the end of the grace period. May be present in
Whole life or endowment policies only, never term since term has no cash value.
this rider is free, but must be selected by the policy owner
Q: aviation clause
