Arkansas Life & Health Insurance MASTER CRAM GUIDE
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/91
Earn XP
Description and Tags
A complete set of VOCABULARY flashcards based on the Arkansas Life & Health Insurance Master Cram Guide, covering contract terms, life and health insurance types, provisions, riders, annuities, taxes, and licensing information.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
92 Terms
Adhesion
A take-it-or-leave-it contract where the wording is not negotiated.
Aleatory
A contract where a small premium may equal a huge payout if a loss happens.
Unilateral
A contract where only the insurer legally promises to pay.
Conditional
A policy that pays only if specific conditions are met.
Personal Contract
A policy based on the characteristics of the insured.
Consideration
The exchange of value: premium plus a truthful application for the promise of coverage.
Indemnity
To restore financial loss rather than providing a profit.
Representation
A statement believed to be true to the best of one's knowledge.
Warranty
A guaranteed statement or fact.
Concealment
The act of hiding important information.
Fraud
Intentional deception for gain.
Misrepresentation
A false statement that impacts the issuance of a policy.
Term Life
Temporary coverage for a set number of years.
Level Term
Life insurance where the benefit stays the same.
Decreasing Term
Life insurance where the death benefit shrinks over time.
Renewable Term
Coverage that can be renewed without a medical exam.
Convertible Term
Coverage that can be converted to permanent insurance without proof of insurability.
Whole Life
Permanent coverage that includes cash value and a fixed premium.
Universal Life
A policy characterized by a flexible premium and benefit.
Variable Life
A policy where investment risk affects the value.
Variable Universal Life
A policy that combines flexible premiums with investment risk.
Single Premium Whole Life
A policy funded by a single payment.
Modified Life
A policy where the premium changes after a set period of time.
Grace Period
Extra time allowed after a missed payment before the policy lapses.
Reinstatement
The process of restoring a lapsed policy.
Incontestability
A period (usually 2 years) after which the insurer limits its ability to contest the policy.
Misstatement of Age
A provision where benefits are adjusted to reflect the correct age.
Free Look
A period during which the policyowner can cancel for a refund.
Assignment
The transfer of rights within an insurance policy.
Absolute Assignment
The full transfer of ownership of a policy.
Collateral Assignment
A transfer of rights used as collateral for a loan.
Revocable Beneficiary
A beneficiary that can be changed at any time.
Irrevocable Beneficiary
A beneficiary that must approve any changes to the policy.
Primary Beneficiary
The first person in line to receive the death benefit.
Contingent Beneficiary
The backup beneficiary.
Per Stirpes
An inheritance method where children inherit the share of a deceased beneficiary.
Per Capita
An inheritance method where the benefit is split equally among living beneficiaries.
Policyowner Rights
The rights to borrow, surrender, change the beneficiary, or assign the policy.
Accelerated Benefit Rider
Provides early access to the death benefit for terminal illness.
Waiver of Premium
A rider that waives the premium during a period of disability.
Payor Rider
Waives the premium if the parent or payor dies or becomes disabled.
Child Rider
Provides insurance coverage for children.
Guaranteed Insurability Rider
Allows the purchase of additional coverage later without a medical exam.
Accidental Death Rider
Provides an extra payout if the death is accidental.
Accumulation Phase
The phase of an annuity where money enters and grows.
Annuitization
The payout phase of an annuity.
Immediate Annuity
An annuity where payments start quickly.
Deferred Annuity
An annuity where payments start at a later date.
Fixed Annuity
An annuity with a guaranteed interest rate.
Variable Annuity
An annuity that is investment-based.
Market Value Adjusted Annuity
An annuity where the value changes with interest rates.
Deductible
The amount the insured must pay first before insurance pays.
Copayment
A flat fee paid for a medical service.
Coinsurance
The split of costs between the insurer and insured after the deductible.
Out-of-Pocket Max
The yearly limit on covered spending for the insured.
Major Medical
Policy providing large coverage for illness and injury.
HMO
Health Maintenance Organization; a plan with a strict network and a required Primary Care Physician (PCP).
PPO
Preferred Provider Organization; a plan that offers more freedom of choice in providers.
POS
Point of Service; a plan that combines PPO and HMO features.
EPO
Exclusive Provider Organization; a network-only plan that usually requires no referrals.
COBRA
A law allowing temporary continuation of an employer plan after leaving a job.
Own Occupation
A disability definition where the insured cannot perform their specific job.
Any Occupation
A disability definition where the insured cannot perform any job.
Elimination Period
The waiting period before disability benefits begin.
Benefit Period
The length of time disability benefits are paid.
Residual Disability
Benefits provided for a partial disability.
Presumptive Disability
Automatic benefits for severe permanent losses.
Medicare Part A
Hospital insurance.
Medicare Part B
Medical insurance for doctors and outpatient services.
Medicare Part C
Medicare Advantage plan.
Medicare Part D
Prescription drug coverage.
Medicaid
State and federal help for low-income individuals.
Dual Eligibility
Individuals who are eligible for both Medicare and Medicaid.
Qualified Plan
A retirement plan where money goes in pre-tax and is taxed later.
Nonqualified Plan
A retirement plan where money goes in after-tax.
Traditional IRA
A tax-deferred retirement account.
Roth IRA
An account where contributions are after-tax and qualified withdrawals are tax-free.
401(k)
An employer-sponsored retirement plan that is tax deferred.
403(b)
A retirement plan for schools and nonprofit organizations.
SEP IRA
Retirement plan for small businesses or self-employed individuals.
SIMPLE IRA
A retirement plan for small businesses.
MEC
Modified Endowment Contract; a life insurance policy where withdrawals are taxed differently and penalties are possible.
Producer
A licensed seller of insurance.
Fiduciary
A licensed person who must protect a client's money.
Twisting
The illegal act of replacing a policy using misleading information.
Rebating
Illegal special deals or rewards offered as an incentive to buy insurance.
Cease and Desist
An official order to stop a specific activity.
Commissioner
The official who regulates insurance.
Replacement
The act of replacing one policy with another, subject to disclosure rules.
Underwriting
The process of risk evaluation.
Mortality
The risk of death.
Morbidity
The risk of sickness.