Life and Health Insurance - Ohio Licensing Exam
2023-2024
Absolute Assignment - ANSWER 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 - ANSWER A fortuitous event; unforeseen and unintended
Accidental Death Insurance - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and interest
assumptions.
ADB - ANSWER Accidental death benefit, also known as double indemnity. There
is another variation called triple indemnity.
AD&D - ANSWER Accidental death and dismemberment insurance.
Administrator - ANSWER The person appointed by a court to settle a deceased's
,estate, sometimes called and executor.
Adverse selection - ANSWER Selection against the insurance company. The
tendency of poorer risks to want insurance more often than standard risks.
Agent - ANSWER The individual appointed by an insurance company to solicit,
negotiate, effect, or countersign insurance contracts on its behalf.
Aleatory - ANSWER Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - ANSWER 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 - ANSWER An insured organized and domiciled in a country
other than the United States
Annuitant - ANSWER The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - ANSWER 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 - ANSWER The party making application to the insurance company for
the policy
Application - ANSWER 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 - ANSWER The person to whom policy rights are assigned in whole or in
part by the policy owner.
Assignment - ANSWER The transfer of rights in a policy to someone other than
the policy owner.
Attained age - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A person who may become eligible to receive, or is
receiving, benefits under an insurance plan, other than as a participant.
Blanket Insurance Contract - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Life or Health insurance written to vober business
situations, such as key person, sole proprietor, partnership, corporations, ect.
Cancelable - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A statement Evidencing that a policy has been written and
stating the coverage in general. Often used with group coverage.
Claim - ANSWER A demand for payment under the insurance policy.
Classification - ANSWER The grouping of persons for the purpose of determining
an underwriting or rating group into which a particular risk must be placed.
Co-Insurance - ANSWER In Health Insurance, a provision that the insured and
insurance company will share covered losses in agreed proportion.
Collateral Assignment - ANSWER 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.
Common Disaster Provision - ANSWER A provision that can be included in a Life
contrat that pvoides that the primary beneficiary must outlive the insured by a
specified period of time in order to receive the proceeds. If not, the contingent
beneficiary receives that proceeds. The provision is designed to protect the rights
of the contingent beneficiary in the event of simultaneous death of the insured
and the primary beneficiary. The time limit is up to 90 days, depending on state
law.
Comprehensive Health or Major Medical Insurance - ANSWER A form of Health
insurance that combines the coverage of major medical and basic medical
exspenses crontracts into one broad contract that provides coverage for almost all
types of medical expense with few internal limits. Usually subject to a corridor
deductible for expenses after the first dollar base plan limits are exceeded, and to
a co-insurance clause applicable to all or some of the remaining covered expenses.
Concealment - ANSWER The withholding of facts by an applicant for insurance
that materially affect an insurance risk or loss.
2023-2024
Absolute Assignment - ANSWER 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 - ANSWER A fortuitous event; unforeseen and unintended
Accidental Death Insurance - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Once concerned with the application of probability and
statistical theory to insurance. This person sets expenses, and interest
assumptions.
ADB - ANSWER Accidental death benefit, also known as double indemnity. There
is another variation called triple indemnity.
AD&D - ANSWER Accidental death and dismemberment insurance.
Administrator - ANSWER The person appointed by a court to settle a deceased's
,estate, sometimes called and executor.
Adverse selection - ANSWER Selection against the insurance company. The
tendency of poorer risks to want insurance more often than standard risks.
Agent - ANSWER The individual appointed by an insurance company to solicit,
negotiate, effect, or countersign insurance contracts on its behalf.
Aleatory - ANSWER Something that depends upon chance or is random. It is
derived from the Latin idea of "rolling the dice."
Aleatory contract - ANSWER 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 - ANSWER An insured organized and domiciled in a country
other than the United States
Annuitant - ANSWER The one receiving the Annuity and on whose life
expectancy the rates are figured.
Annuity - ANSWER 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 - ANSWER The party making application to the insurance company for
the policy
Application - ANSWER 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 - ANSWER The person to whom policy rights are assigned in whole or in
part by the policy owner.
Assignment - ANSWER The transfer of rights in a policy to someone other than
the policy owner.
Attained age - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A person who may become eligible to receive, or is
receiving, benefits under an insurance plan, other than as a participant.
Blanket Insurance Contract - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Life or Health insurance written to vober business
situations, such as key person, sole proprietor, partnership, corporations, ect.
Cancelable - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER A statement Evidencing that a policy has been written and
stating the coverage in general. Often used with group coverage.
Claim - ANSWER A demand for payment under the insurance policy.
Classification - ANSWER The grouping of persons for the purpose of determining
an underwriting or rating group into which a particular risk must be placed.
Co-Insurance - ANSWER In Health Insurance, a provision that the insured and
insurance company will share covered losses in agreed proportion.
Collateral Assignment - ANSWER 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.
Common Disaster Provision - ANSWER A provision that can be included in a Life
contrat that pvoides that the primary beneficiary must outlive the insured by a
specified period of time in order to receive the proceeds. If not, the contingent
beneficiary receives that proceeds. The provision is designed to protect the rights
of the contingent beneficiary in the event of simultaneous death of the insured
and the primary beneficiary. The time limit is up to 90 days, depending on state
law.
Comprehensive Health or Major Medical Insurance - ANSWER A form of Health
insurance that combines the coverage of major medical and basic medical
exspenses crontracts into one broad contract that provides coverage for almost all
types of medical expense with few internal limits. Usually subject to a corridor
deductible for expenses after the first dollar base plan limits are exceeded, and to
a co-insurance clause applicable to all or some of the remaining covered expenses.
Concealment - ANSWER The withholding of facts by an applicant for insurance
that materially affect an insurance risk or loss.
