Accelerated Benefits - Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses
Accident - an unplanned, unforeseen event which occurs suddenly and at unspecified place
Accident Insurance - A type of insurance that protects t...
Northwestern Mutual Exam
Accelerated Benefits - Riders attached to life insurance policies which allow death benefits to be
used to cover nursing or convalescent home expenses
Accident - an unplanned, unforeseen event which occurs suddenly and at unspecified place
Accident Insurance - A type of insurance that protects the insured against loss due to accidental
bodily injury
Accidental Bodily Injury - unplanned, unforeseen, traumatic injury to the body
Accidental Death and Dismemberment (AD&D) - An insurance policy which pays a specified
amount of 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 - 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 - Insurance policy that provides payment if the insured's death is the
result of an accident
Accumulation Period - The time over which the annuitant makes payments or investments in an
annuity and when those payments earn interest TAX DEFERRED
Activities of Daily Living (ADLs) - Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
Actual cash Value (ACV) - 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 - The amount a physician or supplier actually bills for a particular service or supply
Actuary - A person trained in the technical aspects of insurance and related filed, particularly in
the mathematics of insurance, a person who, on behalf of the company, determines the mathematical
probability of loss.
Adhesion - 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 - Life insurance which permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period.
Adjuster - 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 - An individual appointed by a court as a fiduciary to settle the financial affairs and
estate of a deceased person
Admitted (authorized) insurer - An insurance company authorized and licensed to transact
business in a particular state
Adult day care - A program for impaired adults that attempts to meet their health, social and
functional needs in a setting away from their homes
Adverse selection - The tendency of risks with high probability of loss to purchase and maintain
insurance more often than the risks who present lower probability
Agency - An insurance sales office or company
, Agent - An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of
an insurer
Agent's authority - Special powers granted to an agent by his or her agency contract
Aleatory - A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums in unequal to the amount the
insurer will pay in the event of a loss
Alien Insurance - An insurance company that is incorporated outside the U.S.
Ancillary - Additional, miscellaneous services provided by a hospital, such as x-rays, anesthesia,
and lab work but NOT hospital room and board expenses
Annual Statement - Detailed financial report that an insurance company must submit every year
to the insurance department of state(s) in which it conducts business.
Annuity - A contract that provides income for a specified period of years or for life
Apparent authority - 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 - A person making application for, or offering himself/herself or another to be insured
under an insurance contract
Application - A document that provides information for underwriting purposes. After the policy is
issued, any unanswered questions are considered waived by the insurer.
Approved amount - The amount Medicare determines to be reasonable for a service that is
covered under Part B of Medicare
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