Glossary

A

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absolute assignment -

accelerated benefits rider -

acceptance - (see offer and acceptance)

accident and health insurance -

accidental bodily injury provision -

accidental death and dismemberment (AD&D) -

accidental death benefit rider -

accidental dismemberment -

accidental means provision -

accumulation unit -

acquired immune deficiency syndrome (AIDS) -

acute illness -

adhesion -

adjustable life insurance -

administrative-services-only (ASO) plan -

admitted insurer -

adult day care -

adverse selection -

Advertising Code -

agency -

agent -

agent's report -

aleatory -

alien insurer -

ambulatory surgery -

amount at risk -

annually renewable term (ART) -

annuitant -

annuity -

annuity unit -

any occupation -

apparent authority -

application -

appointment -

approval receipt -

Armstrong Investigation -

assessment insurance -

assessment mutual insurer -

assignee -

assignment -

assignment provision (health contracts) -

assignor -

attained age -

authority -

authorized company -

automatic premium loan provision -

average indexed monthly earnings (AIME) -

average monthly wage (AMW) -

aviation exclusion -

B

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back dating -

basic medical expense policy -

beneficiary -

benefit -

benefit period -

Best's Insurance Report -

binding receipt -

blackout period -

blanket policy -

boycott coercion intimidation -

broker -

broker-dealer -

business continuation plan -

business health insurance -

business overhead expense insurance -

buyer's guides -

buy-sell agreement -

C

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cafeteria plan -

cancellable contract -

capital sum -

career agency system -

case management -

cash or deferred arrangements -

cash refund annuity -

cash surrender option -

cash surrender value -

cash value -

chronic condition -

churning -

class designation -

classification -

cleft lip -

cleft palate -

close corporation -

COBRA -

coercion -

coinsurance (percentage participation) -

collateral assignment -

combination company -

commercial health insurers -

commissioner -

Commissioner's Standard Ordinary (CSO) Table -

common disaster provision -

competent parties -

comprehensive major medical insurance -

concealment -

conditional contract -

conditionally renewable contract -

conditional receipt -

consideration -

consideration clause -

contestable period -

contingent beneficiary -

continuing care -

contract -

contract of agency -

contributory plan - (see noncontributory plan)

conversion factor -

conversion privilege -

convertible term -

coordination of benefits (COB) provision -

corporation -

corridor deductible -

cost of living (COL) rider -

coverage requirements -

credit accident and health insurance -

credit life insurance -

credit report -

cross-purchase plan -

currently insured -

custodial care -

D

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death rate - (see expected mortality)

debit insurer - (see home service insurer)

decreasing term insurance -

deductible -

deferred annuity -

deferred compensation plan -

defined benefit plan -

defined contribution plan -

delayed disability provision -

dental insurance -

dependency period -

deposit term -

disability -

disability buy-sell agreement -

disability income insurance -

disability income rider -

discrimination -

dividend -

dividend options -

domestic insurer -

dread disease policy (see limited risk policy)

E

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elimination period -

employee benefit plans -

employee stock ownership plan (ESOP) -

endowment -

endowment period -

enhanced whole life -

enrollment period -

entire contract provision -

entity plan -

equity indexed annuity -

errors and omissions insurance -

estate -

estate tax -

estoppel -

evidence of insurability -

examiner -

excess interest -

exclusion ratio -

exclusion rider -

exclusions -

exclusive provider organization (EPO) - (see preferred provider organization)

expected mortality -

experience rating -

express authority -

extended term insurance -

extra percentage tables -

F

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face amount -

facility-of-payment provision -

Fair Credit Reporting Act -

family plan policy -

FICA -

fiduciary -

final expense fund -

fixed-amount settlement option -

fixed annuity -

fixed-period settlement option -

flat deductible -

Florida Comprehensive Health Association -

Florida Employee Health Care Access Act -

Florida Health Insurance Coverage Continuation Act -

Florida Viatical Settlement Act -

foreign insurer -

franchise insurance -

fraternal benefit insurer -

fraud -

free look -

fully insured -

funding -

G

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general agent -

government insurer -

grace period -

graded premium whole life -

grandfathered -

gross premium -

group credit insurance -

group insurance -

group model HMO (see closed-panel HMO)

guaranteed insurability (guaranteed issue) -

guaranteed renewable contract -

guaranty association -

H

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hazard -

Health Care and Insurance Reform Act -

health insurance -

health maintenance organization (HMO) -

Holocaust Victims Insurance Act -

home health care -

home service insurer -

hospital benefits -

hospital expense insurance - (see medical expense insurance)

hospital fixed rate -

human life value -

I

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immediate annuity -

implied authority -

incontestable clause -

increasing term insurance - (see cost of living rider)

indemnity approach -

independent agency system -

indeterminate -

indexed annuity -

indexed whole life -

individual insurance -

individual retirement account (IRA) -

industrial insurance - (see home service insurer)

inspection receipt -

inspection report -

installment refund annuity -

insurability -

insurability receipt -

insurable interest -

insurance -

insurance code -

insurer -

insuring clause -

integrated deductible -

interest adjusted net cost method -

interest-only option (interest option) -

interest-sensitive whole life -

interim term insurance -

intermediate nursing care -

irrevocable beneficiary -

J

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joint and last survivor policy -

joint and survivor annuity -

joint life policy -

juvenile insurance -

K

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Keogh plans -

key-person insurance -

L

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lapse -

law of large numbers -

legal purpose -

legal reserve -

level premium funding method -

level term insurance -

license -

licensed insurer (see admitted insurer)

lien system -

life annuity -

life expectancy -

life income settlement option -

life insurance -

limited pay life insurance -

limited policies -

limited risk policy - (see special risk policy)

Life Settlements -

Lloyd's of London -

loading -

loan value -

long-term care -

long-term care policy -

loss sharing (see risk pooling)

lump sum -

M

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major medical expense policy -

managed care -

mandatory second opinion -

master contract -

maturity value -

McCarran-Ferguson Act -

Medicaid -

medical cost management - (see mandatory second opinion, precertification, ambulatory surgery and case management)

medical examination -

medical expense insurance -

Medical Information Bureau (MIB) -

medical report -

Medicare -

Medicare Part A -

Medicare Part B -

Medicare Part C -

Medicare Part D -

Medicare supplement policy -

minimum deposit insurance -

minimum premium plan (MPP) -

miscellaneous expenses -

misrepresentation -

misstatement of age or sex provision -

misuse of premium -

modified endowment contract (MEC) -

modified whole life -

money-purchase plan -

moral hazard -

morale hazard -

morbidity -

morbidity rate -

mortality -

mortality table -

mortgage insurance -

multiple employer trust (MET) -

multiple employer welfare arrangement (MEWA) -

multiple protection policy -

mutual insurer -

N

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National Association of Health Underwriters (NAHU) -

National Association of Insurance and Financial Advisors (NAIFA) -

National Association of Insurance Commissioners (NAIC) -

natural group -

needs approach -

net premium -

nonadmitted insurer -

noncancellable and guaranteed renewable contract -

noncontributory plan -

nondisabling injury -

nonduplication provision -

nonforfeiture options -

nonforfeiture values -

nonmedical insurance -

nonparticipating -

nonqualified plan -

notice of claims provision -

O

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offer and acceptance -

Old-Age, Survivors, Disability and Hospital Insurance (OASDI) -

open-panel HMO -

optionally renewable contract -

ordinary insurance -

organic mental disorder -

other insureds rider -

outline of coverage -

overhead insurance -

overinsurance -

own occupation -

P

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paid-up additions -

paid-up policy -

parol evidence rule -

partial disability -

participating -

participating physician -

participation standards -

partnership -

payor rider -

per capita rule -

peril -

period certain annuity -

permanent flat extra premium -

personal producing general agency system (PPGA) -

per stirpes rule -

policy -

policy loan -

policy provisions -

portability -

precertification -

preexisting condition -

preferred provider organization (PPO) -

preferred risk -

preliminary term insurance -

premium -

premium factors -

prescription drug coverage -

presumptive disability benefit -

primary beneficiary -

primary insurance amount (PIA) -

principal -

principal sum -

private insurer -

probationary period -

proceeds -

producer -

professional liability insurance (see errors and omissions insurance)

profit-sharing plan -

proof of loss -

proper solicitation -

pure endowment -

pure risk -

Q

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qualified plan -

R

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rate-up in age -

rating -

reasonable and customary charge -

rebating -

reciprocal insurer -

recurrent disability provision -

reduced paid-up insurance -

re-entry option -

refund annuity -

reimbursement approach -

reinstatement -

reinsurance -

relative value scale -

renewable option -

renewable term -

replacement - (see twisting)

representation - (see warranties)

reserve -

reserve basis -

residual disability benefit -

respite care -

results provision - (see accidental bodily injury provision)

revocable beneficiary -

rider -

risk -

risk pooling - (see loss sharing)

risk selection -

rollover IRA -

S

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salary continuation plan -

salary reduction SEP - (see simplified employee pension plan)

savings incentive match plan for employees (SIMPLE) -

schedule -

secondary beneficiary -

Section 457 plans -

Self-Employed Individuals Retirement Act -

self-insurance -

self-insured plan -

service insurers -

service provider -

settlement options -

simplified employee pension plan (SEP) -

single dismemberment -

single-premium whole life insurance -

skilled nursing care -

sliding -

small employer -

Social Security -

sole proprietorship -

special agent -

special class -

special questionnaires -

special risk policy - (see limited risk policy)

specified disease insurance - (see limited risk policy)

speculative risk -

spendthrift provision -

split-dollar life insurance -

spousal IRA -

standard provisions -

standard risk -

stock bonus plan -

stock insurer -

stock redemption plan -

stop-loss provision -

straight life income (straight life annuity, life annuity) -

straight whole life insurance - (see whole life insurance)

Stranger-Originated Life Insurance (STOLI) -

Subrogation -

subscriber -

substandard risk -

successor beneficiary - (see secondary beneficiary)

suicide provision -

supplemental accident coverage -

supplementary major medical policy -

surgical expense insurance -

surgical schedule -

surrender value - (see cash surrender value)

T

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taxable wage base -

tax-sheltered annuity -

temporary flat extra premium -

temporary insurance agreement - (see binding receipt)

term insurance -

term of policy -

tertiary beneficiary -

third-party administrator (TPA) -

third-party applicant -

time limit on certain defenses -

total disability -

traditional net cost method -

transacting insurance -

travel-accident policies -

trust -

trustee -

twisting - (see misrepresentation)

U

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unallocated benefit -

underwriter -

underwriting -

Unfair Trade Practices Act -

Uniform Individual Accident and Sickness Policy Provisions Law -

Uniform Simultaneous Death Act -

unilateral -

uninsurable risk -

universal life -

utilization review -

V

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valued contract -

variable annuity -

variable life insurance -

variable universal life insurance -

vesting -

viatical broker -

viatical provider -

viatical settlement contract -

viator -

vision insurance -

void contract -

voidable contract -

voluntary group AD&D -

W

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waiting period - (see elimination period)

waiver -

waiver of premium -

war clause -

warranties - (see representation)

whole life insurance -

wholesale insurance - (see franchise insurance)

workers' compensation -

X

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Y

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yearly renewable term insurance (YRT) - (see annually renewable term)

Z

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