38875626
Description
Flashcards by Brooke Young, updated 9 months ago
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Created by Brooke Young
9 months ago
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| Question | Answer |
| Insured | Customer or policyholder |
| Policyholder | The insured |
| Insurer | The insurance company that issues the policy |
| Beneficiary | Person(s) designated to receive the face value of the life insurance when insured dies |
| Face amount | Dollar amount stated in policy |
| Premium | Periodic payments that one makes for various kinds of insurance protection |
| Statistician | A person who is skilled at compiling statistics |
| Term insurance | Inexpensive life insurance that provides protection for a specific period of time. No nonforfeiture values exist for term |
| Level premium term | Insurance premium that is fixed, say, for 50 years |
| Cash value | Except for term insurance, this indicates the value of the policy when terminated. Options fall under the heading of nonforfeiture values |
| 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 |
| 20-payment life | Provides permanent protection and cash value, but insured pays premiums for first 20 years |
| Paid-up insurance | A certain level of insurance can continue, although the premiums are terminated. This results from the nonforfeiture value (except term). Result is a reduced paid-up policy until death |
| 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 | Protection (full value of policy) results from continual payment of premiums by insured. Until death or retirement, nonforfeiture values exist for straight life |
| 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 |
| Reduced paid-up insurance | Insurance that uses cash value to buy protection, face amount is less than original policy, and policy continues for life |
| 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 |
| Fire insurance | Stipulated percent (normally 80%) of value that is required for insurance company to pay to reimburse one’s losses |
| Short-rate table | Fire insurance rate table used when insured cancels the policy |
| Coinsurance | Type of fire insurance in which the insurer and insured share the risk. Usually there is an 80% coinsurance clause |
| Indemnity | Insurance company’s payment to insured for loss |
| Liability insurance | Insurance for bodily injury to others and damage to someone else’s property |
| Compulsory insurance | Insurance required by law—standard coverage |
| Bodily injury | Auto insurance that pays damages to people injured or killed by your auto |
| Property damage | Auto insurance covering damages that are caused to the property of others |
| Collision | Optional auto insurance that pays for the repairs to your auto from an accident after deductible is met. Insurance company will only pay for repairs up to the value of the auto (less deductible) |
| Comprehensive | Optional auto insurance that pays for damages to the auto caused by factors other than from collision (fire vandalism, theft, and the like) |
| Deductibles | Amount insured pays before insurance company pays. Usually the higher the deductible, the lower the premium will be |
| No-fault insurance | Involves bodily injury. Damage (before a certain level) that is paid by an insurance company no matter who is to blame |
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