TX-LAH05 - General Lines - Life,
Accident and Health
Accelerated Benefits - correct answer-Riders attached to life insurance policies which allow
death benefits to be used to cover nursing or convalescent home expenses.
Accident - correct answer-An unplanned, unforeseen event which occurs suddenly and at an
unspecified place.
Accident Insurance - correct answer-A type of insurance that protects the insured against
loss due to accidental bodily injury.
Accidental Bodily Injury - correct answer-Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - correct answer-An insurance policy which
pays a specified amount or a specified multiple of the insured's benefit if the insured dies,
loses his/her sight, or loses two limbs due to an accident.
Accidental Death Benefits - correct answer-A policy rider that states that the cause of death
will be analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - correct answer-An insurance policy that provides payment if
the insured's death is the result of an accident.
Accumulation Period - correct answer-The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - correct answer-An infectious and incurable
disease caused by the human immunodeficiency virus (HIV).
Accidental Death Benefits - correct answer-A policy rider that states that the cause of death
will be analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - correct answer-An insurance policy that provides payment if
the insured's death is the result of an accident.
Accumulation Period - correct answer-The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - correct answer-An infectious and incurable
disease caused by the human immunodeficiency virus (HIV).
Activities of Dally Living (ADLs) - correct answer-Activities individuals must do every day
such as moving about, getting dressed, eating, bathing, etc.
,Actual Cash Value (AC) - correct answer-The required amount to pay damages or for
property loss, which is calculated based on the property's current replacement value minus
depreciation.
Actual Charge - correct answer-The amount a physician or supplier actually bills for a
particular service or supply.
Actuary - correct answer-A person trained in the technical aspects of insurance and related
fields, particularly in the mathematics of insurance; a person who, on behalf of the company,
determines the mathematical probability of loss.
Adhesion - correct answer-A contract offered on a "take-it-or-leave-it' basis by an insurer, in
which the insured's only option is to accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life - correct answer-Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - correct answer-A representative of an insurance company who investigates and
acts on the behalf of the company to obtain agreements for the amount of the insurance
claim.
Administrator - correct answer-An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Adult Day Care - correct answer-A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
Adverse Selection - correct answer-The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower probability.
Agency - correct answer-An insurance sales office or company.
Agent - correct answer-An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
Agent's Authority - correct answer-Special powers granted to an agent by his or her agency
contract.
Aleatory - correct answer-A contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured will pay in
premiums is unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - correct answer-An insurance company that is incorporated outside the United
States.
, Alzheimer's Disease - correct answer-A disease that causes the victim to become
dysfunctional due to degeneration of brain cells causing severe memory loss.
Ancillary - correct answer-Additional, miscellaneous services provided by a hospital, such as
x-rays, anesthesia; and lab work, but: not hospital room and board expenses.
Annual Statement - correct answer-A detailed financial report that an insurance company
must submit every year to the insurance department of state(s) in which it conducts
business.
Annuity - correct answer-A contract that provides income for a specified period of years, or
for life.
Apparent Authority - correct answer-The appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances the principal
created.
Applicant - correct answer-A person making application for, or offering him/herself or another
to be insured under an insurance contract.
Application - correct answer-A document that provides information for underwriting
purposes. After the policy is issued, any unanswered questions are considered waived by
the insurer.
Approved Amount - correct answer-The amount Medicare determines to be reasonable for a
service that is covered under part B of Medicare.
Assignment (Life) - correct answer-The transfer of ownership rights of a life insurance policy
from one person to another.
Assignment (Health) - correct answer-A claim to a provider or medical supplier to receive
payments directly from Medicare
Attained Age - correct answer-The age of the insured at a determined date.
Attending Physician's Statement (APS) - correct answer-A statement usually obtained from
the applicant's doctor.
Authorized (Admitted) Insurer - correct answer-An insurance company authorized and
licensed to transact business in a particular state.
Avoidance - correct answer-A method of dealing with risk by deliberately keeping away from
it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might
choose never to fly in a plane).
Back-End Load - correct answer-a fee charged at the time of a sale, transfer or withdrawal
from an annuity or a life insurance policy.
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