Delaware Life Insurance Exam Terms Latest Updated
2024/2025
Accelerated Benefits - Correct Answers Riders attached to life insurance policies which allow death benefits to be used to cover nursing home expenses or convalescent home expenses Accidental Death Benefits - Correct Answers A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death Accidental Death Insurance - Correct Answers An insurance policy that provides payment if the insured's death is the result of an accident.Accumilation Period - Correct Answers The time before any annuitant's retirement during which the annuitant is making payment or investments in an annuity.Acquired Immunodeficiency Syndrome (AIDS) - Correct Answers An infectious and incurable disease caused by the human immunodeficiency virus (HIV).Actual Cash Value (ACV) - Correct Answers The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation.Actuary - Correct Answers A person trained in the technical aspects of insurance and related fields, particularly in the mathematics of insurance; a person who, on behalf of the company, determines the mathematical probability of loss.Adhesion - Correct Answers A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is either to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured.Adjustable Life - Correct Answers Life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period.Adjuster - Correct Answers A representative of an insurance company who investigates and acts on the behalf of the company to obtain agreements for the amount of the insurance claim. 1 / 3
Administrator - Correct Answers An individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person Admitted (Authorized) Insurer - Correct Answers An insurance company authorized and licensed to transact business in a particular state.Adult Day Care - Correct Answers A program for impaired adults that attempts to meet their health, social, and functional needs in a setting away from their homes.Adverse Selection - Correct Answers The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability.Agency - Correct Answers An insurance sales office or company.Agent - Correct Answers An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the insurer Agent's Authority - Correct Answers Special powers granted to an agent by his or her agency contract.Aleatory - Correct Answers A contract in which participating parties exchange unequal amounts.Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.Alien Insurer - Correct Answers An insurance company that is incorporated outside the United States.Alzheimer's Disease - Correct Answers A disease that causes the victim to become dysfunctional due to degeneration of brain cells and severe memory loss Annual Statement - Correct Answers A detailed financial report that an insurance company must submit every year to the insurance department of state(s) in which it conducts business.Annuity - Correct Answers A contract that provides income for a specified period of years, or for life. 2 / 3
Apparent Authority - Correct Answers The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.Applicant - Correct Answers A person making application for, or offering him/herself or another to be insured under an insurance contract.Application - Correct Answers A document that provides information for underwriting purposes.After the policy is issued, any unanswered questions are considered waived by the insurer.Assignment - Correct Answers the transfer of ownership rights of a life insurance policy from one person to another Attained Age - Correct Answers The age of the insured at a determined date.Attending Physician's Statement (APS) - Correct Answers A statement usually obtained from the applicant's doctor.Authorized (Admitted) Insurer - Correct Answers An insurance company authorized and licensed to transact business in a particular state.Avoidance - Correct Answers A method of dealing with risk by deliberately keeping away from it (e.g.if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).Basic Illustration - Correct Answers A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.Beneficiary - Correct Answers The person who receives the proceeds from the policy when the insured dies.Binder (Binding Receipt) - Correct Answers A temporary contract that puts an insurance policy into force before the premium has been paid.Birthday Rule - Correct Answers The method of determining primary coverage for a dependent child, under which the plan of the parent whose birthday occurs first in the calendar year is designated as primary.
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