Exam (elaborations)
ISYE 6501 Midterm 1
- Module
- Capa Test Questions
- Institution
- Capa Test Questions
Exam of 17 pages for the course Capa Test Questions at Capa Test Questions (ISYE 6501 Midterm 1)
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Delaware Life Insurance Exam TermsAccelerated Benefits - ANS-Riders attached to life insurance policies which allow death
benefits to be used to cover nursing home expenses or convalescent home expenses
Accidental Death Benefits - ANS-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 - ANS-An insurance policy that provides payment if the
insured's death is the result of an accident.
Accumilation Period - ANS-The time before any annuitant's retirement during which the
annuitant is making payment or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - ANS-An infectious and incurable
disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - ANS-The required amount to pay damages or for property
loss, which is calculated based on the property's current replacement value minus
depreciation.
Actuary - ANS-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 - ANS-A contract offered on a "take-it-or-leave-it" basis by an insurer, in which
the insured's only option is either to accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life - ANS-Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - ANS-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 - ANS-An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person
,Admitted (Authorized) Insurer - ANS-An insurance company authorized and licensed to
transact business in a particular state.
Adult Day Care - ANS-A program for impaired adults that attempts to meet their health,
social, and functional needs in a setting away from their homes.
Adverse Selection - ANS-The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower
probability.
Agency - ANS-An insurance sales office or company.
Agent - ANS-An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer
Agent's Authority - ANS-Special powers granted to an agent by his or her agency
contract.
Aleatory - ANS-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 - ANS-An insurance company that is incorporated outside the United
States.
Alzheimer's Disease - ANS-A disease that causes the victim to become dysfunctional
due to degeneration of brain cells and severe memory loss
Annual Statement - ANS-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 - ANS-A contract that provides income for a specified period of years, or for life.
Apparent Authority - ANS-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 - ANS-A person making application for, or offering him/herself or another to be
insured under an insurance contract.
, Application - ANS-A document that provides information for underwriting purposes. After
the policy is issued, any unanswered questions are considered waived by the insurer.
Assignment - ANS-the transfer of ownership rights of a life insurance policy from one
person to another
Attained Age - ANS-The age of the insured at a determined date.
Attending Physician's Statement (APS) - ANS-A statement usually obtained from the
applicant's doctor.
Authorized (Admitted) Insurer - ANS-An insurance company authorized and licensed to
transact business in a particular state.
Avoidance - ANS-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).
Basic Illustration - ANS-A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
Beneficiary - ANS-The person who receives the proceeds from the policy when the
insured dies.
Binder (Binding Receipt) - ANS-A temporary contract that puts an insurance policy into
force before the premium has been paid.
Birthday Rule - ANS-The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
Broker - ANS-An individual who represents an insured in the process of purchasing and
negotiating a contract of insurance.
Buy-Sell Agreement - ANS-A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
Buyer's Guide - ANS-A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
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