Life and Health Insurance - Ohio Licensing
Exam
Absolute Assignment
The assignment by the policy owner of all control and rights to a third party. This differs
from collateral assignment, which allows all the rights and control to revert to the owner
once a loan is paid off
Accident
A fortuitous event; unforeseen and unintended
Accidental Death Insurance
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 and dismemberment (AD&D)
Accident and Sickness
Insurance against bodily injury, disability, or death by accident or accidental means, or
expense thereof, or against disability or expense resulting from sickness and the
insurance relating thereto
Accident means
The unexpected cause of an accidental bodily injury. Under an accidental means
definition, the mishap itself must be accidental. If a person does something to contribute
to the accident, the claim would not be paid under this restrictive definition
Accelerated benefit
Available only if the benefits are available during the insured's lifetime, benefit amounts
are fixed when accelerated, and the benefits, when paid, reduces the death benefit
Accumulation at interest option
A dividend option under which the policy owner allows dividends to accumulate at
interest with the company. Only the interest on the dividends is taxable as income
(participating policies only).
Actuary
Once concerned with the application of probability and statistical theory to insurance.
This person sets expenses, and interest assumptions.
ADB
Accidental death benefit, also known as double indemnity. There is another variation
called triple indemnity.
AD&D
Accidental death and dismemberment insurance.
Administrator
The person appointed by a court to settle a deceased's estate, sometimes called and
executor.
Adverse selection
Selection against the insurance company. The tendency of poorer risks to want
insurance more often than standard risks.
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Agent
,The individual appointed by an insurance company to solicit, negotiate, effect, or
countersign insurance contracts on its behalf.
Aleatory
Something that depends upon chance or is random. It is derived from the Latin idea of
"rolling the dice."
Aleatory contract
A contract in which both parties know that one or the other may receive more than paid
in. This payment is dependent upon a fortuitous event. For example. a person pays the
premium for a term policy for many years and does not die, thus, a claim is never filed.
Alien company
An insured organized and domiciled in a country other than the United States
Annuitant
The one receiving the Annuity and on whose life expectancy the rates are figured.
Annuity
1. An amount of money, payable monthly or yearly, which liquidates a financial asset. 2.
An agreement by an insurer to make periodic payments that continue during the survival
of the annuitant(s) or for a specified period. Annuities are also accumulations vehicles
that function much like savings accounts.
Applicant
The party making application to the insurance company for the policy
Application
A form on which the prospective insured states facts requested by the insurer and on
the basis of which the insurer decides whether to accept the risk, modify the coverage
offered, or decline the risk.
Assignee
The person to whom policy rights are assigned in whole or in part by the policy owner.
Assignment
The transfer of rights in a policy to someone other than the policy owner.
Attained age
The present age of the insured. This is a factor when a person converts term insurance
to whole life insurance or buys added disability under a GIR provision
Attorney-in-fact
A person to whom authorization is given by an individual to exchange insurance with
other persons. Always present in a reciprocal insurance company.
Authorized company
An insurer permitted to sell insurance within a state, evidenced by a certificate of
authority from the insurance commissioner, also called ADMITTED
Automatic premium loan
A provision in a life policy authorizing the insurance company to use the loan value to
pay premiums not paid by the end of the grace period. May be present in whole life or
other traditional cash value policies only, but never in term policies
Aviation clause
Limits or excludes coverage when the insured is participating in specified types of air
travel, cush as private planes. Coverage is usually fully in force for people on regularly
scheduled commercial flights. The limit or exclusion often applies to student pilots
Beneficiary
, A person who may become eligible to receive, or is receiving, benefits under an
insurance plan, other than as a participant.
Blanket Insurance Contract
A contract of Health Insurance that covers all of a class of persons not individually
identified. No certificates are issued and people covered may not be aware that the
coverage is in place.
Blue Plan
The generic term for those insurers (usually on a service rather than a reimbursement
bases) who are authorized to use the designation Blue Cross or Blue Shield and the
insignia of either.
Broker
One who represents an insured in the solicitation, negotiation, or procurement of
contracts of insurance, functions. This person is also called an independent agent.
Business Insurance
Life or Health insurance written to vober business situations, such as key person, sole
proprietor, partnership, corporations, ect.
Cancelable
A contract of Insurance that may be terminated by the insurance company or insured at
any time. Virtually every form of insurance is cancelable except Life insurance and
those health policies designated as guaranteed renewable, or non-cancelable and
guaranteed renewable.
Cancellation
The termination of a contract of insurance in force by voluntary act of the insurance
company or insured, effected in accordance with provisions in the contract or by mutual
agreement.
Capital Sum
The maximum amount payable in one sum in the event of accidental dismemberment. It
is typically half of the face amount of principal sum.
Cash Surrender Value
The value reposing in a policy that is the legal property of the policy owner and that may
be expected should the policy be surrendered for cash. Synonymous with cash value.
Certificate
A statement Evidencing that a policy has been written and stating the coverage in
general. Often used with group coverage.
Claim
A demand for payment under the insurance policy.
Classification
The grouping of persons for the purpose of determining an underwriting or rating group
into which a particular risk must be placed.
Co-Insurance
In Health Insurance, a provision that the insured and insurance company will share
covered losses in agreed proportion.
Collateral Assignment
The assignment of part of the proceeds of an insurance policy to a bank as collateral to
settle the loan balance that may exist at the insured's death. This agreement is
temporary.
Exam
Absolute Assignment
The assignment by the policy owner of all control and rights to a third party. This differs
from collateral assignment, which allows all the rights and control to revert to the owner
once a loan is paid off
Accident
A fortuitous event; unforeseen and unintended
Accidental Death Insurance
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 and dismemberment (AD&D)
Accident and Sickness
Insurance against bodily injury, disability, or death by accident or accidental means, or
expense thereof, or against disability or expense resulting from sickness and the
insurance relating thereto
Accident means
The unexpected cause of an accidental bodily injury. Under an accidental means
definition, the mishap itself must be accidental. If a person does something to contribute
to the accident, the claim would not be paid under this restrictive definition
Accelerated benefit
Available only if the benefits are available during the insured's lifetime, benefit amounts
are fixed when accelerated, and the benefits, when paid, reduces the death benefit
Accumulation at interest option
A dividend option under which the policy owner allows dividends to accumulate at
interest with the company. Only the interest on the dividends is taxable as income
(participating policies only).
Actuary
Once concerned with the application of probability and statistical theory to insurance.
This person sets expenses, and interest assumptions.
ADB
Accidental death benefit, also known as double indemnity. There is another variation
called triple indemnity.
AD&D
Accidental death and dismemberment insurance.
Administrator
The person appointed by a court to settle a deceased's estate, sometimes called and
executor.
Adverse selection
Selection against the insurance company. The tendency of poorer risks to want
insurance more often than standard risks.
00:0201:16
Agent
,The individual appointed by an insurance company to solicit, negotiate, effect, or
countersign insurance contracts on its behalf.
Aleatory
Something that depends upon chance or is random. It is derived from the Latin idea of
"rolling the dice."
Aleatory contract
A contract in which both parties know that one or the other may receive more than paid
in. This payment is dependent upon a fortuitous event. For example. a person pays the
premium for a term policy for many years and does not die, thus, a claim is never filed.
Alien company
An insured organized and domiciled in a country other than the United States
Annuitant
The one receiving the Annuity and on whose life expectancy the rates are figured.
Annuity
1. An amount of money, payable monthly or yearly, which liquidates a financial asset. 2.
An agreement by an insurer to make periodic payments that continue during the survival
of the annuitant(s) or for a specified period. Annuities are also accumulations vehicles
that function much like savings accounts.
Applicant
The party making application to the insurance company for the policy
Application
A form on which the prospective insured states facts requested by the insurer and on
the basis of which the insurer decides whether to accept the risk, modify the coverage
offered, or decline the risk.
Assignee
The person to whom policy rights are assigned in whole or in part by the policy owner.
Assignment
The transfer of rights in a policy to someone other than the policy owner.
Attained age
The present age of the insured. This is a factor when a person converts term insurance
to whole life insurance or buys added disability under a GIR provision
Attorney-in-fact
A person to whom authorization is given by an individual to exchange insurance with
other persons. Always present in a reciprocal insurance company.
Authorized company
An insurer permitted to sell insurance within a state, evidenced by a certificate of
authority from the insurance commissioner, also called ADMITTED
Automatic premium loan
A provision in a life policy authorizing the insurance company to use the loan value to
pay premiums not paid by the end of the grace period. May be present in whole life or
other traditional cash value policies only, but never in term policies
Aviation clause
Limits or excludes coverage when the insured is participating in specified types of air
travel, cush as private planes. Coverage is usually fully in force for people on regularly
scheduled commercial flights. The limit or exclusion often applies to student pilots
Beneficiary
, A person who may become eligible to receive, or is receiving, benefits under an
insurance plan, other than as a participant.
Blanket Insurance Contract
A contract of Health Insurance that covers all of a class of persons not individually
identified. No certificates are issued and people covered may not be aware that the
coverage is in place.
Blue Plan
The generic term for those insurers (usually on a service rather than a reimbursement
bases) who are authorized to use the designation Blue Cross or Blue Shield and the
insignia of either.
Broker
One who represents an insured in the solicitation, negotiation, or procurement of
contracts of insurance, functions. This person is also called an independent agent.
Business Insurance
Life or Health insurance written to vober business situations, such as key person, sole
proprietor, partnership, corporations, ect.
Cancelable
A contract of Insurance that may be terminated by the insurance company or insured at
any time. Virtually every form of insurance is cancelable except Life insurance and
those health policies designated as guaranteed renewable, or non-cancelable and
guaranteed renewable.
Cancellation
The termination of a contract of insurance in force by voluntary act of the insurance
company or insured, effected in accordance with provisions in the contract or by mutual
agreement.
Capital Sum
The maximum amount payable in one sum in the event of accidental dismemberment. It
is typically half of the face amount of principal sum.
Cash Surrender Value
The value reposing in a policy that is the legal property of the policy owner and that may
be expected should the policy be surrendered for cash. Synonymous with cash value.
Certificate
A statement Evidencing that a policy has been written and stating the coverage in
general. Often used with group coverage.
Claim
A demand for payment under the insurance policy.
Classification
The grouping of persons for the purpose of determining an underwriting or rating group
into which a particular risk must be placed.
Co-Insurance
In Health Insurance, a provision that the insured and insurance company will share
covered losses in agreed proportion.
Collateral Assignment
The assignment of part of the proceeds of an insurance policy to a bank as collateral to
settle the loan balance that may exist at the insured's death. This agreement is
temporary.
