Life Insurance Exam Prep

Vocabulary flashcards for life insurance exam preparation.

Policy Assignment

The policy is assigned to the bank, used as collateral for the loan.

Exclusion

Provision in a life policy that may limit the insurance company's liability if death occurs as a result of war or civil disobedience.

Aleatory Contract

A contract where the performance of one or both parties depends on a specific event, such as insurance.

USA PATRIOT Act

US law to detect criminal activity.

Variable Annuity

An annuity that pays based on units rather than specific dollar amounts, often linked to investments.

Variable Universal Life

A policy that allows the policyholder to adjust the premium payment, payment period, and death benefit.

Renewable Term

A term life policy that guarantees the insured the right to continue coverage after the initial term without providing evidence of insurability.

Irrevocable Beneficiary

A beneficiary designation that cannot be changed by the policy owner.

Delivery receipt

Document that starts the free look period.

Insuring Clause

The insurer's promise to pay benefits in a life insurance policy.

Aviation Exclusion

Exclusion in a life policy for student airplane pilots.

Whole Life

A life insurance policy that provides permanent protection at the lowest annual premium.

Immediate Annuity

An annuity where payout begins one payment period after purchase.

Contract of Adhesion

A life insurance policy offered on a 'take it or leave it' basis.

Consideration

An underwriter's assessment of information on a life insurance application.

Insurable Interest

The requirement that insurable interest must exist when the application is signed.

Universal Life

Policy with flexible premium payments.

Term Rider

Term Life insurance coverage for children under a parent's insurance policy using a rider.

Waiver of Premium

Policy provision guaranteeing that the insurance company will pay the premiums for the duration of disability after a waiting period.

Suicide Clause

A life insurance policy provision designed to protect the insurance company from adverse selection by high-risk applicants.

Long-Term Care Rider

A life insurance policy rider triggered by the insured's inability to perform activities of daily living.

Unfair Claims Settlement Practice

Insurance company failing to adopt and implement reasonable standards for prompt investigation of claims.

Misrepresentation

A producer representing an insurance policy as consisting of shares of stock.

Domestic Insurer

Insurance company incorporated and organized under the laws of a specific state.