Primerica Insurance Terms with verified definitions.
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Module
Primerica
Institution
Primerica
Jumping Juvenile
- Any life insurance written on the life of a minor
- Face amount increases at a predetermined age, often 21
- The face amount jumps but the premium remains level
401 K Plan
A qualified retirement plan in which the employee can set aside a portion of their income with pre-...
primerica insurance terms with verified definition
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Primerica Insurance Terms with
verified definitions
Jumping Juvenile
- Any life insurance written on the life of a minor
- Face amount increases at a predetermined age, often 21
- The face amount jumps but the premium remains level
401 K Plan
A qualified retirement plan in which the employee can set aside a
portion of their income with pre-tax dollars.
Assignment Clause
Owner can assign policy ownership either-
Absolute: permanent
Collateral: temporary
Accelerated Death Benefit Rider
Policy provision that allows early payment of the policy's death
benefit before the insured's death if he/she is terminally ill.
Accidental Death Benefit
An extra cost rider that requires the insurance company to pay an
additional benefit in the event that the insured dies within 90 days
of an accident as a direct result of the accident.
Accumulate at Interest
The Dividend Option where the policyowner leaves the dividends
with the insurer to invest and earn interest.
Adhesion
Since the insurer created all the documents of the contract, any
ambiguities in the contract will be settled in favor of the insured.
Since the insurer wrote the contract they are stuck with it. TAKE IT
OR LEAVE IT
Adverse Selection
,The tendency for less favorable risks to seek or continue insurance
to a greater extent than more favorable risks.
Agency or Agent Contract
A legal document containing the terms of the agreement between
the agent and the insurance company. It clearly defines what an
agent can do, and how he/she will be compensated.
Agent Authorities
Expressed: Power or authority specifically
granted in writing to an agent by the insurance
company in their Agency Agreement. Apparent:
Power or authority that the public reasonably
assumes an agent has based upon his/her
actions.
Implied: Power or authority that is not
expressly granted by the company but that an
agent can assume or that are implied he/she has
in order to transact insurance business.
Agent/Producer
Anyone who sells or aids in the selling of insurance. Legally
represents the company.
Agent's Report
A written report from the agent submitted to the insurer along with
the application disclosing what the agent knows, observed, or
learned about the proposed insured's risks.
Aleatory
Unequal exchange of value. One party may obtain a far greater
value than the other under the contract.
Annual Renewable Term
A Term Life Insurance contract which gives the policyowner the
option to renew the policy each year without showing proof of
insurability. Premiums increase at each renewal.
Annuitant
The person that buys an annuity; may or may not be an annuity's
policyowner.
Appointment
, Authorization of an agent/producer by an insurer to represent the
company.
(must be appointed to by the company to sell insurance)
Blackout Period
The period of time between the youngest child turning 16 and the
widow(er) reaching retirement age during which no Social Security
Survivor Benefits are paid to the surviving spouse.
Buy-Sell Agreement
B= business use of Life Insurance where partners in a business buy
life insurance on each other. They agree that when one of them dies
the survivors have the right to purchase the deceased partner's
share of the business. The death benefit from the insurance is used
to finance the purchase.
Cash Nonforfeiture Option
Policyowner receives a lump-sum payment of the current cash value
of the policy upon surrender of the policy. The policy cannot be
reinstated.
Cash Settlement Option
Upon maturity of an insurance policy the beneficiary receives a
lump-sum payment of the entire policy proceeds due.
Cash Value
That part of an insurance policy that is the equity amount legally
available to the policyowner. The cash value accumulates
throughout the duration of the policy. Also known as living benefit
or policy savings.
SAVINGS ACCOUNT INSIDE LIFE INSURANCE POLICY
Commissioner
Public official in charge of the state's department of insurance.
Charged with regulating the insurance industry in his/her state by
enforcing the insurance laws.
ELECTED BY ___ EVERY 2 YEARS
Conditional
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