Xcel Texas Pre-licensing Education - Life and Health Insurance Insurance Glossary Exam Study Guide with Complete Solutions
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Xcel
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Xcel
Xcel Texas Pre-licensing Education - Life and
Health Insurance Insurance Glossary Exam
Study Guide with Complete Solutions
Absolute assignment - Answer️️ -Policy assignment under which the
assignee (person to whom the policy is assigned) receives full control over
the policy and also full ...
Xcel Texas Pre-licensing Education - Life and
Health Insurance Insurance Glossary Exam
Study Guide with Complete Solutions
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)
Accelerated benefits rider - Answer✔️✔️-A life insurance rider that allows
for the early payment of some portion of the policies face amount should
the insured suffers from a terminal illness or injury.
Acceptance (See offer and acceptance) - Answer✔️✔️-
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.
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.
Accidental death benefit rider - Answer✔️✔️-A life insurance policy rider
providing for payment of an additional benefit when death occurs by
accidental means.
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 not be considered dismemberment.
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.
Accident and health insurance - Answer✔️✔️-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.
Accumulation unit - Answer✔️✔️-Premiums an annuitant pays into
annuities are credited as accumulation units. At the end of the
accumulation period, accumulation units are converted to annuity units.
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.
Acute illness - Answer✔️✔️-A serious condition, such as pneumonia, from
which the body can fully recover with proper medical attention.
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.
Adjustable life insurance - Answer✔️✔️-Combines features of both term and
whole life coverage 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.
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.
Admitted insurer - Answer✔️✔️-An insurance company that has met the
legal and financial requirements for operation within a given state.
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.
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 policy owners to take advantage of
favorable options in insurance contracts.
Advertising Code - Answer✔️✔️-Rules established by the National
Association of Insurance Commissioners (NAIC) to regulate insurance
advertising.
Agency - Answer✔️✔️-Situation wherein one party (an agent) has the power
to act for another (the principal) i n dealing with third parties.
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.
Agent's report - Answer✔️✔️-The section of an insurance application where
the agent reports personal observations about the applicant.
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.
Alien Insurer - Answer✔️✔️-Company incorporated or organized under the
laws of any foreign nation, providence, or territory.
Ambulatory surgery - Answer✔️✔️-Surgery performed on an outpatient
basis.
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