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Arkansas Life Insurance Exam Terms Questions Graded A+
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Arkansas Life Insurance Exam Terms
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Arkansas Life Insurance Exam TermsAccelerated Benefits - answer Riders attached to life insurance policies which allow
death benefits to be used to cover nursing or convalescent home expenses.
Accidental Death Benefits - 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 - answer An insurance policy that provides payment if the
insured's death is the result of an accident.
Accumulation Period - answerThe time before an annuitant's retirement during which
the annuitant is making payments or investments in an annuity
Acquired Immunodeficiency Syndrome (AIDS) - answerAn infectious and incurable
disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - answerThe required amount to pay damages or for property
loss. This amount is calculated based on the property's current replacement value
minus depreciation.
Actuary - answerA 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 - answerA contract offered on a "take-it-or leave-it" basis by an insurer, in
which the insured's only option is to either accept or reject the contract. Any ambiguities
in the contract will be settled in favor of the insured.
Adjustable Life - answerLife insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - answerA 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 - answerAn individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - answerAn insurance company authorized and licensed
to transact business in a particular state.
, Adult Day Care - answerA program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
Adverse Selection - answerThe tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower
probability.
Agency - answerAn insurance sales office or company.
Agent - answerAn individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.
Agent's Authority - answerSpecial powers granted to an agent by his or her agency
contract.
Aleatory - answerA 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 - answerAn insurance company that is incorporated outside the United
States.
Alzheimer's disease - answerA disease that causes the victim to become dysfunctional
due to degeneration of brain cells and severe memory loss.
Annual Statement - answerA detailed financial report that an insurance company must
submit every year to the insurance department of state(s) in which it conducts business.
Annuity - answerA contract that provides income for a specified period of years, or for
life.
Apparent Authority - answerThe appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
Applicant - answerA person making application for, or offering him/herself or another to
be insured under an insurance contract.
Application - answerA document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the
insurer.
Assignment - answerThe transfer of ownership rights of a life insurance policy from one
person to another.
Attained Age - answerThe age of the insured at a determined date.
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