What Kind of Income Does Someone Insured Have If He or She Is Unable to Work?
Unearned income.
The Following Is a Way of Calculating the Amount of Disability Coverage That an Individual Requires
Programming.
Which Insurance Paperwork Permits an Insured to Obtain Term Coverage for a Spouse?
Spouse term insurance rider.
COBRA Permits
A terminated employee to continue coverage.
When Assessing a Health Insurance Policy Premium, All But Which of the Following Should Be Taken into Account?
Gender.
Inducement
An offer that attempts to influence the other party.
Reciprocity
A mutual exchange of benefits or privileges. “I’ll scratch your back if you scratch mine.”
Heart Attacks from a Car/Motorcycle
Only pay the face amount to the beneficiary.
How Long Can a Temporary License Be Issued?
90 days.
Pre-License Education Requirement
Require that you complete 20 hours of pre-license education.
Restitution
Restoration to the original condition or repayment.
Surplus Lines Insurance
Insurance that is not available from admitted insurers.
What Does Indemnify Mean?
To restore an insured to the same financial status as before the loss.
Common Personal Uses of Life Insurance
Survivor protection, estate creation & conservation, cash accumulation, and liquidity.
Conditional
ED.
Contact of Utmost Good Faith
Truthfulness with both parties.
What Does Representation Mean and How Does It Differ from Warranty?
Representations are statements believed to be true to the best of one’s knowledge. A warranty is an absolutely true statement upon which the validity of the insurance policy depends.
What Does Insurance Solicitation Mean?
It is an attempt to persuade a person to buy an insurance policy, and it can be done orally or in writing.
What Information Does a Buyer’s Guide Provide?
Basic information about life insurance policies and comparison of policy costs.
What Is Underwriting?
Risk selection + classification process.
Stock Insurers
Stock insurers are owned by shareholders.
Premium
The money paid to the insurance company for the insurance policy.
Reciprocity/Reciprocal
A mutual interchange of rights and privileges.
Commissioner
The head of the department of insurance.
Consent
Permission to do something.
Consideration
Something of value that each party gives to the other; the binding force in any contract.
Disclosure
Revealed information to help someone make an informed decision.
Lapse
Policy termination due to nonpayment of premium.
Underwriting
Risk selection and classification process.
Beneficiary
A person who receives the benefits of an insurance policy.
Estate
A person’s net worth.
Attained Age
The insured’s age at the time the policy is renewed or replaced.
Cash Value
A policy’s savings element or living benefit.
Deferred
Withheld or postponed until a specified time or event in the future.
Endow
To have the cash value of a whole life policy reach the contractual face amount.
Nonforfeiture Values
Benefits in a life insurance policy that the policy owner cannot lose even if the policy is surrendered or lapses.
Face Amount
The amount of benefit stated in the life insurance policy.
Lapse
Policy termination due to nonpayment of premium.
