9618154
Description
Flashcards by Courtney Oldham, updated more than 1 year ago
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Created by Courtney Oldham
over 7 years ago
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| Question | Answer |
| Beneficiary | Person(s) designated to receive the face of value of the life insurance when the insured dies. |
| Bodily Injury | Auto insurance that pays damages to people injured or killed by your auto. |
| Cash Value | Except for term insurance, this indicates the value of the policy when terminated. |
| Coinsurance | Type of fire insurance in which the insurer and insured shared the risk. Usually, there is an 80% coinsurance clause. |
| Collision | Optional auto insurance that pays for the repairs to your auto from an accident after. |
| Comprehensive Insurance | Optional auto insurance that pays for damages to the auto caused by factors other than from collision (fire, vandalism, theft, and the like). |
| Compulsory Insurance | Insurance required by law - standard coverage |
| Deductibles | Amount insured pays before insurance company pays. Usually, the higher the deductible, the lower the premium will be. |
| Extended Term Insurance | Resulting from nonforfeiture, it keeps the policy for the full face value going without further premium payments for a specific period of time. |
| Face Amount | Dollar amount stated in policy |
| Face Value | The amount of insurance that is stated on the policy. It is usually the maximum amount for which the insurance company is liable. |
| Fire Insurance | Stipulated percent (normally 80%) of value that is required for the insurance company to pay to reimburse one's losses. |
| Indemnity | Insurance company's payment to insured for loss. |
| Insured | Customer or policyholder |
| Insurer | The Insurance company that issues the policy. |
| Level Premium Term | Insurance premium that is fixed, say, for 50 years. |
| Liability Insurance | Insurance for bodily injury to others and damage to someone else's property. |
| No-Fault Insurance | Involves bodily injury. Damage (before a certain level) that is paid by an insurance company no matter who is to blame. |
| Nonforfeiture values | When a life insurance policy is terminated (except term), it represents (1) the available cash value, (2) additional extended term, or (3) additional paid-up insurance. |
| Paid-up insurance | A certain level of insurance can continue, although the premiums are terminated. This results from the nonforfeiture value (except term). The result is a reduced paid-up policy until death. |
| Policy Holder | The insured |
| Premium | Periodic payments that one makes for various kinds of insurance protection. |
| Property Damage | Auto insurance covering damages that are caused to the property of others. |
| Reduced paid-up insurance | Insurance that uses cash value to buy protection, face amount is less than original policy, and policy continues, for life. |
| Short-rate table | Fire insurance rate table used when insured cancels the policy |
| Statistician | A person who is skilled at compiling statistics. |
| Straight Life Insurance | Protection (full value of policy) results from continual payment of premiums by insured. Until death or retirement, nonforfeiture values exist for straight life. |
| Term- Insurance | Inexpensive life insurance that provides protection for a specific period of time. No nonforfeiture values exist for term. |
| 20-payment life | Provides permanent protection and cash value, but insured pays premiums for first 20 years. |
| 20-year endowment | Most expensive life insurance policy. It is a combination of term insurance and cash value. |
| Universal Life | Whole life insurance plan with flexible premium and death benefits. This life plan has limited guarantees. |
| Whole Life | basically a universal life plan |
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