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KEYWORDS

Keywords: Basic Principles of Life and Health Insurance

  • Actuarial Department: Calculates policy rates, reserves, and dividends.

  • Adjuster: Investigates claims, manages settlements.

  • Alien Insurer: Insurance company based outside the U.S.

  • Admitted Insurer: Insurer authorized to operate in a state.

  • Agent: Sells and transacts insurance for providers.

  • Broker: Represents clients, not bound to insurers.

  • Captive Insurer: Owned by a parent firm to insure its risks.

  • Claims Department: Processes and pays claims.

Keywords: Life Insurance Policy Types

  • AD&D Insurance: Benefits for accidental death or loss of limbs.

  • Accidental Death Benefit: Lump-sum for accidental death.

  • Cash Surrender Value: Available upon policy surrender.

  • Convertible Term Life Insurance: Can be exchanged for permanent insurance.

  • Decreasing Term Insurance: Death benefit decreases over time.

  • Endowment Contract: Pays a face amount after a set period or upon death.

Keywords: Life Insurance Policy Provisions, Options, and Riders

  • Absolute Assignment: Full control over the policy is transferred.

  • Accidental Death Benefit Rider: Additional payout for death by accident.

  • Waiver of Premium Rider: Suspends premiums if the insured is disabled.

  • Free-Look Provision: Allows return of policy within specified days for a refund.

  • Grace Period: Time after premium due date to avoid lapse.

  • Collateral Assignment: Policy assigned as security for a debt.

Keywords: Legal Concepts of Insurance

  • Agent: Represents insurers and has fiduciary responsibilities.

  • Indemnity Contract: Restores insureds to original financial position.

  • Misrepresentation: Incorrect statements on insurance applications.

  • Void Contract: Lacks essential elements, has no legal effect.

  • Waiver: Voluntary relinquishing of a known right.

Keywords: Nature of Insurance

  • Insurance: Transfer of risk via legal contract.

  • Indemnification: Restoring insureds to pre-loss financial condition.

  • Law of Large Numbers: Predicts loss accuracy through large groups.