Questions and Answers
What are Accelerated Benefits?
What is an accident?
An unplanned, unforeseen event which occurs suddenly at an unspecified place.
What is Accidental Death and Dismemberment insurance?
An insurance policy that pays a specified amount if the insured dies, loses sight, or loses two limbs.
What are accidental death benefits?
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What is the accumulation period?
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What is actual cash value?
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What does actual charge refer to?
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Who is an actuary?
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What does adhesion mean in the context of insurance?
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What is adjustable life insurance?
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What is the role of an adjuster?
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What does an administrator do in insurance?
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What is adverse selection?
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What is an insurance agent?
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What does aleatory mean in insurance?
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What is an alien insurer?
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What does ancillary refer to in a medical context?
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What is an annuity?
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What does apparent authority mean in insurance?
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What is an insurance application?
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What is the approved amount in Medicare?
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What does assignment (life) refer to?
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What is assignment (health) in insurance?
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What does avoidance mean in risk management?
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What is back end load in insurance?
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What is a basic illustration in life insurance?
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What is a beneficiary in insurance?
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What is the benefit period?
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What is a binder in insurance?
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What is blanket medical insurance?
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Study Notes
Insurance Terms and Definitions
- Accelerated benefits: Riders on life insurance allowing use of death benefits for nursing or convalescent care expenses.
- Accident: An unexpected event occurring suddenly at an unspecified location.
- Accidental Death and Dismemberment (AD&D): Policy that pays a specified amount if the insured dies or loses sight/limbs due to an accident.
- Accidental death benefits: A rider that assesses the cause of death to see if it aligns with policy definitions of accidental death.
- Accumulation period: Duration where an annuitant makes payments into an annuity, earning interest tax-deferred.
- Actual cash value: Amount necessary to cover damages or losses for property claims.
- Actual charge: The actual billed amount by a physician or supplier for services rendered.
- Actuary: A professional trained in insurance mathematics, calculating loss probabilities.
- Adhesion: A "take it or leave it" contract offered by an insurer, where insureds have limited options.
- Adjustable life insurance: Policy allowing changes in face amount, premium, coverage period, and payment duration.
- Adjuster: Insurance company representative who investigates and negotiates claim amounts.
- Administrator: Court-appointed individual managing the financial affairs of a deceased person’s estate.
- Adverse selection: Higher-risk individuals more likely to purchase insurance than lower-risk individuals.
- Agent: Licensed individual authorized to sell and negotiate insurance contracts for insurers.
- Aleatory contract: A contract involving unequal exchanges between parties.
- Alien insurer: An insurance company established outside the United States.
- Ancillary services: Additional hospital services like x-rays, excluding room and board costs.
- Annuity: A contract guaranteeing income for a specified term or lifetime.
- Apparent authority: Assumed authority based on the principal's actions or circumstances they created.
- Application: Document containing information necessary for underwriting processes in insurance.
- Approved amount: Reasonable payment set by Medicare for services under Part B coverage.
- Assignment (life): Transfer of ownership rights in a life insurance policy from one person to another.
- Assignment (health): Authorization for direct payment to medical providers from Medicare.
- Avoidance: Risk management strategy involving keeping away from potential risk.
- Back end load: Fee charged on withdrawal, sale, or transfer from an annuity or policy.
- Basic illustration: A proposal showing guaranteed and non-guaranteed elements of a life insurance policy.
- Beneficiary: Individual designated to receive policy proceeds upon the insured's death.
- Benefit period: Timeframe during which insurance benefits are available for specific conditions or stays.
- Binder: Temporary contract that activates an insurance policy prior to premium payment.
- Blanket medical insurance: Comprehensive policy covering all medical expenses.
- Broker: An individual representing clients in insurance matters, offering expert guidance and access to multiple insurers.
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Test your knowledge on key insurance terms with these flashcards. Each card presents a word and its definition, helping you understand concepts like accelerated benefits and accidental death. Perfect for preparation for insurance exams.