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Webce Life and Health 2024/2025 already graded A+
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Webce Life and Health 2024/2025 already graded A+
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Webce Life and HealthRepresentations and Warranties - ANSRepresentations are statements the applicant makes on
an application that are deemed to be true to the applicant's best knowledge. Warranties are
statements the insurer makes in the contract.
Underwriting vs. Actuarial Departments - ANSTwo related insurance company functions.
Through the process of _________, applications are assessed for insurability and to assign
premium rates. The ________ department analyzes data to help estimate future losses and to
produce rate tables.
Managerial System vs. General Agency System - ANSTwo variations of the career agency
system in which producers represent a single company. One is headed by a company employee
called a general manager (GM), the other by an independent contractor called a general agent
(GA).
Fraternal Insurance Company - ANSA non-profit form of insurance provider sponsored by an
organization of people who share a common ethnic, religious, or vocational affiliation.
Peril and Hazard - ANSTwo related general insurance terms:
Peril is the immediate cause of a loss (and the event that is insured against).
Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - ANSA type of contract in which one party (the offeror) drafts the terms
that must be accepted as-is by the offeree. Insurance policies are this type.
Mutual Insurance Company - ANSA form of insurance company that is owned by policyowners.
May distribute policy dividends (non-taxable) through participating policies.
Independent Agency System - ANSAn insurance distribution system in which the manager and
producers are fully independent and not affiliated with any single insurer.
Buyer's Guide and Policy Summary - ANSTwo related disclosure documents that are required
by most states to be presented to life and health insurance applicants at some point during the
buying process.
Risk - ANSA basic insurance term referring to the possibility of incurring a loss.
Law of Large Numbers - ANSA mathematical principle that is the basis for predicting the odds of
a loss occurring in a certain population in any given year.
,Social Security (OASDI) - ANSA federal insurance program that provides disability, death, and
retirement benefits to covered workers and their qualifying beneficiaries.
Agents vs. Brokers - ANSTwo basic types of insurance producer: an ______ represents a single
insurer and a _____ sells policies from multiple insurers.
Reinsurance - ANSThe process through which insurance companies spread large risks among
other insurers.
Domestic, Foreign, and Alien Insurers - ANSInsurers can be categorized by their state of
domicile. There are three categories, known as _____, _____, and _____.
Stock Insurance Company - ANSA form of insurance company that is owned by stockholders
who may or may not also be policyowners. May distribute stock dividends (taxable).
Admitted Insurer - ANSAn insurer that has a certificate of authority in a given state is said to be
an___________ insurer in that state.
Express, Implied, and Apparent Authority - ANSExpress authority—The right to sign an
application as an agent for the insurer.
Implied authority—Using a computer program to identify insurance needs and to recommend
solutions.
Apparent authority—Advising the applicant to not disclose on the application any important
health facts that might reduce his or her insurability.
Indemnity vs. Valued Contract - ANSTwo forms of insurance contract. An indemnity contract
bases policy benefits on reimbursement of actual losses. A valued contract bases benefits on a
stated amount without regard for the value of the loss.
Loss - ANSAn unplanned reduction in economic value resulting from the occurrence of a
covered peril.
Medicare - ANSA federal insurance program that provides medical care benefits to covered
workers (retirees).
Underwriting - ANSThe process by which an insurance company assesses an application to
determine if it represents an insurable risk.
Risk Management - ANSThe natural process by which people contend with the perils faced
daily, of which there are five common techniques.
The five basic elements of a valid contract - ANSOffer, acceptance, consideration, competent
parties, and legal purpose
,Concealment - ANSThe willful nondisclosure of material facts on an application for the purpose
of obtaining insurance.
Insurable Risk (5 Criteria) - ANSLoss must be definable and measurable.
The covered peril must be accidental or outside the insured's control.
The risk must be shared by a large group of similar risks.
The loss must not be catastrophic.
The risk must not be generally excluded from coverage.
Needs Approach - ANSThe needs approach to determining life insurance needs is based on a
detailed review of a person's specific situation. It examines personal and family income,
liabilities, and assets, as well as future financial goals, to calculate the right amount of life
insurance.
Bring-Back Rule - ANSIn estate planning, this rule requires life insurance policies transferred
from the insured within 3 years before death to be returned to the decedent's estate for
valuation purposes.
Life Insurance "Living Benefits" - ANSLiving benefits are made possible by the policy's cash
value, which is always available to the policyowner through policy loans, withdrawals, and
partial surrenders. The funds may be used for any purpose.
Key Person Life Insurance - ANSIf a key employee ends his or her employment, the employer
can continue the policy in force. However, many employers choose to:
sell the policy to the insured for an amount equal to its cash value
surrender the policy or
change insureds if allowed by the insurance company and applicable state law
Annuity - ANSAn insurance contract between a person and an insurer to distribute an
accumulated sum of money over a certain period, including the person's lifetime.
Annuities come in many forms, but they all have two common purposes:
to accumulate money on a tax-deferred basis
to distribute the accumulated money as income in a guaranteed amount for a guaranteed period
(including the annuitant's life)
Decreasing Term Life Insurance - ANSThis form of term life features a death benefit that
diminishes over time and premium that remains level for the term of the policy.
Fully Insured Status (Social Security) - ANSTo be considered fully insured, a worker must have
40 quarters of coverage. A fully insured worker is eligible for disability, retirement, and death
benefits.
, Cross-Purchase Buy-Sell Agreement - ANSA type of buy-sell agreement in which each owner
purchases a life insurance policy on each of the other owners.
ERISA - ANSThe Employee Retirement Income Security Act of 1974 (ERISA) protects the rights
of employees covered under an employer-sponsored plan by stipulating minimum participation,
vesting, and funding requirements.
Irrevocable Beneficiary - ANSThis beneficiary designation cannot be changed by the
policyowner without that beneficiary's permission.
Guaranteed Insurability Rider - ANSThis life policy rider guarantees that additional coverage
can be added to a whole life policy even if the insured has become uninsurable.
Annuity Beneficiary - ANSThe person the annuity owner chooses to receive the annuity
contract's values if either the owner or the annuitant dies before annuitization.
Whole Life Insurance - ANSWhole life insurance features a guaranteed cash value, a fixed
guaranteed death benefit, level premiums, and coverage that can remain in effect as long as the
insured lives (up to age 120). Its most basic form is called straight (or ordinary) whole life
insurance.
Buy-Sell Agreement - ANSA legal agreement through which two or more owners of a business
arrange for the disposition of each owner's share of the business upon death.
Expense Charge (Load Factor) - ANSThe load factor reflects the costs the insurer expects to
incur on the policy. In determining its load factor, an insurer is generally guided by three
objectives:
to cover total operating costs
to provide a safety margin
to contribute to profits or surplus
Term Life Insurance - ANSThis basic form of life insurance provides temporary protection and
does not include a cash value while the insured is alive.
Insurable Interest - ANSThe financial interest a policyowner has in a person or property being
insured, justifying the purchase of insurance.
Annuitization - ANSThe process through which a sum of money is converted into periodic
payments through an annuity contract.
Different for every age and annuity income option, annuity purchase rates are defined in terms
of income dollars per $1,000 of accumulation.
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