Insurance Exam FX Verified Answers

Insurance Exam FX Verified Answers Accelerated benefits riders attached to life insurance policies which allow death benefits to be used to cover nursing or convalescent home expenses accident an unplanned, unforeseen event which occurs suddenly at an unspecified place Accidental Death and Dismemberment an insurance policy which pays a specified amount or a specified multiple of the insured's benefits if the insured dies, loses sight, or loses two limbs accidental death benefits 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 accumulation period the time over which the annuitant makes payments or investments in an annuity, and when those payments earn interest tax deferred actual cash value the required amount to pay damages or for property loss actual charge the amount a physician or supplier actually bills for a particular service or supply actuary a person trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurance; a person who determines the mathematical probability of loss adhesion a contract offered on a "take it or leave it" basis by an insurer, in which insured's options are to accept or reject adjustable life life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period adjuster 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 an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person adverse selection the tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability agent an individual who is licensed to sell, negotiate, or effet insurance contracts on behalf of an insurer aleatory a contract in which participating parties exchange unequal amounts alien insurer am insurance company that is incorporated outside of the united states ancillary additional services provided by a hospital such as x-rays but not hospital room and board expenses annuity a contract that provides income for a specified period of years, or for life apparent authority the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created application a document that provides information for underwriting purposes approved amount the amount Medicare determines to be reasonable for a service that is covered under part B of Medicare assignment (life) the transfer of ownership rights of a life insurance policy from one person to another assignment (health) a claim to a provider or medical supplier to receive payments directly from medicare avoidance a method of dealing with risk by deliberately keeping away from it back end load a fee charges at the time of a sale, transfer or withdrawal from an annuity or a life insurance policy basic illustration a ledger or proposal used in the sale if a life insurance policy that shows both guaranteed and nonguaranteed elements beneficiary the person who receives the proceeds from a the policy when the insured dies benefit period the length of time over which the insurance benefits will be paid for each illness, disability or hospital stay binder a temporary contract that puts an insurance policy into force before the premium has been paid blanket medical insurance a policy that provides benefits for all medical costs broker an individual who represents an insured in the process of purchasing and negotiating a