Oklahoma Life, Accident & Health Study Flashcards

Vocabulary study flashcards covering key insurance concepts, annuity principles, policy provisions, riders, life and health products, Medicare, and Oklahoma legal regulations.

Annuity

A contract issued by an insurance company whose main purpose is to provide income, often for retirement.

Annuitant

The person whose life is used to calculate lifetime payments under an annuity contract.

Accumulation Period

The period during an annuity contract when money is going in and growing tax deferred.

Annuitization Period

The period when an annuity contract pays an income stream under a chosen payout option.

Immediate Annuity

An annuity contract where income payments generally begin within one year of purchase.

Deferred Annuity

An annuity contract where income payments begin at a later date, following an accumulation period.

Single Premium Annuity

An annuity contract funded with one single lump sum payment.

Flexible Premium Annuity

An annuity contract that allows additional contributions over time.

Fixed Annuity

An annuity where the insurer bears the investment risk of meeting guarantees and guarantees at least a minimum credited interest rate.

Variable Annuity

An annuity where the contract owner bears the investment risk of chosen separate account subaccounts.

Indexed Annuity

fixed annuity - value is guaranteed by company interest earned can go up to down like the stock market. Interest is tied to the stock market index SP500.

Life Only (Straight Life) Payout

An annuity payout option that continues only while the annuitant lives, providing no minimum payment period and usually yielding the highest periodic payment.

Life with Period Certain

An annuity payout option that pays for life with a minimum guaranteed number of years.

Joint and Survivor Annuity

An annuity payout option where payments continue while either of two annuitants is alive, as contracted.

Surrender Charge

A contract charge assessed for withdrawing money from an annuity during its surrender period. Additional 10% tax before 59 1/2

Free Withdrawal Provision

A contract allowance permitting a limited withdrawal amount from an annuity without incurring a surrender charge.

Nonqualified Annuity

An annuity funded with after-tax money outside a tax-qualified retirement plan.

Early Distribution Penalty (Annuities)

An additional $10\%$ federal tax that may apply to taxable annuity distributions taken prior to age $59\frac{1}{2}$, unless an exception applies.

1035 Exchange

A qualifying direct exchange of one annuity for another that generally defers recognition of gain for tax purposes.

Oklahoma Annuity Best Interest Standard

A state requirement mandating that producers place the consumer's interest ahead of the producer's or insurer's financial interest.

Oklahoma Annuity Best Interest Obligations

The four required duties of care, disclosure, conflict of interest, and documentation.

Insuring Clause

The provision stating the insurer's promise to pay covered losses or benefits.

Consideration

The applicant's statements and premium payment combined with the insurer's promise to pay.

Entire Contract Provision

A policy provision stating that the insurance policy and the attached application form the entire contract.

Free Look

A provision allowing the policyowner to return the policy within a stated period for a full refund.

Grace Period

A specified time after a premium due date during which coverage continues while the premium remains unpaid.

Reinstatement

The process of restoring a lapsed policy after meeting required contract conditions.

Incontestability

A provision that generally limits the insurer's ability to void a life policy for application misstatements after a stated period.

Misstatement of Age Provision

A provision stating that if the insured's age was misstated, benefits will be adjusted to what the paid premium would have bought at the correct age.

Revocable Beneficiary

A beneficiary designation that the policyowner can change without obtaining the beneficiary's consent.

Irrevocable Beneficiary

A beneficiary designation that usually requires the beneficiary's consent for any owner changes.

Primary Beneficiary

The first person or entity designated to receive insurance proceeds upon the insured's death.

Contingent Beneficiary

The person or entity designated to receive policy proceeds if the primary beneficiary cannot.

Automatic Premium Loan

A loan taken against available cash value to pay an overdue premium and prevent policy lapse.

Reduced Paid-Up Insurance

A life nonforfeiture option that uses cash value to buy a smaller permanent death benefit requiring no further premiums.

Extended Term Insurance

A life nonforfeiture option that uses cash value to purchase term coverage for the original face amount for a limited period.

Waiver of Premium Rider

A policy rider that waives premium payments following a qualifying disability, subject to contract terms.

Guaranteed Insurability Rider

A rider allowing the addition of coverage at specified times without providing new evidence of insurability.

Accelerated Benefit Rider

A rider that pays a portion of the death benefit early upon a qualifying medical condition.

Elimination Period

The waiting time required before disability, long-term care, or health policy benefits begin.

Noncancelable Policy

A policy that guarantees renewal and locks in individual premium rates as stated.

Coinsurance

The insured's percentage share of covered health expenses after any applicable deductible is met.

Deductible

An amount the insured must pay out-of-pocket before the plan begins sharing covered costs.

Term Life Insurance

Life insurance providing a death benefit for a stated period with generally no cash value.

Whole Life Insurance

Permanent life insurance offering fixed premiums and guaranteed cash value accumulation.

Universal Life Insurance

Life insurance known for flexible premiums and an adjustable death benefit, subject to contract limits.

Variable Life Insurance

Life insurance whose cash value depends on the performance of selected separate account investments.

Joint Life Policy

A life policy covering two individuals that pays proceeds upon the death of the first insured.

Survivorship Life Policy

A life policy covering two individuals that pays proceeds upon the death of the second insured.

Insurable Interest

A legitimate financial or personal interest in the insured's continued life required at the time policy coverage begins.

Conditional Receipt

A receipt given upon application that may make coverage effective as of the application/exam date if stated conditions are met.

Modified Endowment Contract (MEC)

A life insurance policy that fails the seven-pay test and receives less favorable distribution tax treatment.

Adverse Selection

The tendency for higher-risk individuals to seek insurance coverage at greater rates, increasing the insurer's expected losses.

Disability Income Insurance

Insurance designed to replace a portion of lost earnings during a covered period of disability.

Hospital Indemnity Insurance

Insurance providing a fixed benefit amount for covered hospital stays, regardless of actual medical costs.

Medicare Part A

The portion of Medicare covering mainly inpatient hospital care and certain related services.

Medicare Part B

The portion of Medicare covering mainly outpatient medical services and physician care.

Medicare Part C

Medicare Advantage, a private health plan alternative to Original Medicare.

Medicare Part D

The portion of Medicare providing prescription drug coverage.

Medigap

Supplemental insurance designed to work with Original Medicare (Parts A and B) rather than Medicare Advantage.

Activities of Daily Living (ADLs)

Basic self-care tasks such as bathing, dressing, and eating used to evaluate long-term care needs.

Domestic Insurer

An insurer formed under the laws of Oklahoma.

Foreign Insurer

An insurer formed under the laws of another U.S. state or jurisdiction.

Alien Insurer

An insurer formed under the laws of a country outside the United States.

Stock Insurer

An insurance company owned by its stockholders.

Mutual Insurer

An insurance company owned by its policyholders.

Rebating

Offering an inducement outside policy terms to persuade someone to purchase insurance, as prohibited by law.

Twisting

Using misleading comparisons to induce an improper insurance policy replacement.

Unfair Claims Practice

An unlawful insurer action such as failing to investigate or settle claims fairly as required by law.