North Carolina Life and Health Insurance Review

Vocabulary-style flashcards covering general insurance concepts, federal regulations, medical expense plans, and North Carolina specific statutes.

Law of Agency

The legal framework governing the relationship between an insurance producer (the agent) and the insurance company (the principal).

STOLI/IOLI

Stranger-Originated Life Insurance and Investor-Originated Life Insurance, which are specific types of insurance arrangements often scrutinized during the underwriting process.

USA PATRIOT Act

Federal legislation that includes Anti-Money Laundering provisions applicable to the insurance industry.

ERISA

The Employee Retirement Income Security Act, a federal law that sets standards for most voluntarily established retirement and health plans in private industry.

Affordable Care Act (ACA)

A comprehensive health care reform law that addresses health insurance coverage, costs, and preventive care.

Health Maintenance Organizations (HMO)

A type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO.

Preferred Provider Organizations (PPO)

A type of health plan where you pay less if you use providers in the plan's network and provide more flexibility in choosing healthcare providers.

Point-of-Service Plans (POS)

A type of managed care plan that is a hybrid of HMO and PPO plans, where beneficiaries may be required to choose a primary care physician.

Indemnity Plans

Traditional insurance plans, also known as fee-for-service plans, where the insurer pays a fixed amount or a percentage of the cost for covered services.

OBRA

The Omnibus Budget Reconciliation Act of 1989, which contains federal laws and regulations affecting group health insurance.

Health Savings Accounts (HSA)

Tax-advantaged savings accounts available to individuals who are enrolled in a High-Deductible Health Plan (HDHP).

Health Reimbursement Accounts (HRA)

Employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year.

Flexible Spending Arrangements (FSA)

Accounts that allow employees to set aside a portion of their earnings to pay for qualified expenses, most commonly for medical or dependent care expenses, with untaxed dollars.

Commissioner of Insurance

The state official in North Carolina responsible for supervising and regulating the insurance industry within the state.

Insurance Information and Privacy Protection Act

Statutes that govern how personal information is collected, used, and disclosed by insurance institutions and producers.

Life and Health Insurance Guaranty Association

An association created to protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company.

Unfair Trade Practices

A category of prohibited activities in the insurance industry, including acts like misrepresentation, rebating, and unfair discrimination.

Workers' Compensation

A state-mandated insurance program that provides benefits to employees who suffer job-related injuries or illnesses.

Social Security Disability

Federal benefits provided to individuals who meet specific work credit requirements and are unable to work due to a severe medical condition.