FLORIDA HEALTH LIFE & ANNUITIES INSURANCE
VOCABULARY 2024 TEST STUDY QUESTIONS WITH
ANSWERS (COMPLETE 100%) | RATED A+
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,absolute assignment - Answer>>>Policy assignment under which the assignee (person to whom
the policy is assigned) receives full control over the policy and also full rights to its benefits.
Generally, when a policy is assigned to secure a debt, the owner retains all rights in the policy in
excess of the debt, even though the assignment is absolute in form. (See assignment) p119
accelerated benefits rider - Answer>>>A life insurance rider that allows for the early payment of
some portion of the policy's face amount should the insured suffer from a terminal illness or
injury. P120
acceptance - Answer>>>The offer may be made by the applicant by signing the application,
paying the first premium, and if necessary, submitting to a physical examination. Policy
issuance, as applied for, constitutes acceptance by the company. Or, the offer may be made by
the company when no premium payment is submitted with the application. Premium payment on
the offered policy then constitutes acceptance by the applicant. p34
accidental bodily injury provision - Answer>>>Disability income or accident policy provision
that requires that the injury be accidental in order for benefits to be payable. P313
accidental death and dismemberment (AD&D) - Answer>>>Insurance providing payment if the
insured's death results from an accident, if the insured accidentally severs a limb above the wrist
or ankle joints, or totally and irreversibly loses eyesight. P321-323
accidental death benefit rider - Answer>>>A life insurance policy rider providing for payment of
an additional benefit when death occurs by accidental means. P129
accidental dismemberment - Answer>>>Often defined as "the severance of limbs at or above the
wrists or ankle joints, or the entire irrevocable loss of sight." Loss of use in itself may or may not
be considered dismemberment. P322
accidental means provision - Answer>>>Unforeseen, unexpected, unintended cause of an
accident. Requirement of an accident-based policy that the cause of the mishap must be
accidental for any claim to be payable. P313
accident and health insurance - Answer>>>Insurance under which benefits are payable in case of
disease, accidental injury, or accidental death. Also called health insurance, personal health
insurance, and sickness and accident insurance. P324
,accumulation unit - Answer>>>Premiums an annuitant pays into a variable annuity are credited
as accumulation units. At the end of the accumulation period, accumulation units are converted
to annuity units. P212
acquired immune deficiency syndrome (AIDS) - Answer>>>A life-threatening condition brought
on by the human immunodeficiency virus; insurers must adhere to strict underwriting and claims
guidelines in regard to AIDS risks and AIDS-related conditions. P163, 333
acute illness - Answer>>>A serious condition, such as pneumonia, from which the body can
fully recover with proper medical attention. P343
adhesion - Answer>>>A life insurance policy is a contract of adhesion because buyers must
adhere to the terms of the contract already in existence. They have no opportunity to negotiate
terms, rates, values, and so on. P36
adjustable life insurance - Answer>>>Combines features of both term and whole life coverate
with the length of coverage and amount of accumulated cash value as the adjustable factors.
Premiums may be increased or decreased to fit the specific needs. Such adjustments are not
retroactive and apply only to the future. p99
administrative-services-only (ASO) plan - Answer>>>Arrangement under which an insurance
company or an independent organization, for a fee, handles the administration of claims,
benefits, and other administrative functions for a self-insured group. P288
adult day care - Answer>>>Type of care (usually custodial) designed for individuals who require
assistance with various activities of daily living, while their primary caregivers are absent.
Offered in care centers. P348
adverse selection - Answer>>>Selection "against the company." Tendency of less favorable
insurance risks to seek or continue insurance to a greater extent than others. Also, tendency of
policyowners to take advantage of favorable options in insurance contracts. P353, 379, 380
Advertising Code - Answer>>>Rules established by the National Association of Insurance
Commissioners (NAIC) to regulate insurance advertising. P27
agency - Answer>>>Situation wherein one party (an agent) has the power to act for another (the
principal) in dealing with third parties. P40
, agent - Answer>>>Anyone not a duly licensed broker who solicits insurance or aids in placing
risks, delivering policies, or collecting premiums on behalf of an insurance company. P40
agent's report - Answer>>>The section of an insurance application where the agent reports
personal observations about the applicant. P176
aleatory - Answer>>>Feature of insurance contracts in that there is an element of chance for both
parties and that the dollar given by the policyholder (premiums) and the insurer (benefits) may
not be equal. P35
alien insurer - Answer>>>Company incorporated or organized under the laws of any foreign
nation, providence, or territory. P24
ambulatory surgery - Answer>>>Surgery performed on an outpatient basis. P372
annually renewable term (ART) - Answer>>>A form of renewable term insurance that provides
coverage for one year and allows the policyowner to renew coverage each year without evidence
of insurability. Also called yearly renewable term (YRT). P87
annuitant - Answer>>>One to whom an annuity is payable, or a person upon the continuance of
whose life further payment depends. P204
annuity - Answer>>>A contract that provides a stipulated sum payable at certain regular
intervals during the lifetime of one or more persons, or payable for a specified period only. P204
annuity unit - Answer>>>The number of annuity units denotes the share of the funds an
annuitant will receive from a variable annuity account after the accumulation period ends and
benefits begin. A formula is used to convert accumulation units to annuity units. P212
any occupation - Answer>>>A definition of total disability that requires that for disability
income benefits to be payable, the insured must be unable to perform any job for which the
insured is "reasonably suited by reason of education, training, or experience." p311
apparent authority - Answer>>>The authority an agent appears to have, based on the principal's
(the insurer's) actions, words, deeds, or because of circumstances the principal (the insurer)
created. P41
