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VA life insurance, health insurance, and
annuities exam. Glossary Questions and
Answers (Expert Solutions)
Q: A & H
ANS 🗹🗹: accident and health
Q:
absolute assignment
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
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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
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
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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
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
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:
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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
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
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
VA life insurance, health insurance, and
annuities exam. Glossary Questions and
Answers (Expert Solutions)
Q: A & H
ANS 🗹🗹: accident and health
Q:
absolute assignment
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
, Page | 2
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
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
, Page | 3
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
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
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:
, Page | 4
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
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
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
