Illinois Life & Health Insurance Exam Accelerated Benefits Answer- Riders attached to life insurance policies that allow death benefits to be used to cover nursing or convalescent home expenses Accidental death benefits Answer- 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 Answer- an insurance policy that provides payment if the insureds death is the result of an accident accumulation period Answer- the time before an annuitants retirement during which the annuitant is making payments or investments in the annuity actual cash value (acv) Answer- the required amount to pay damages or for property loss. This amount is calculated based on the properties current replacement value minus depreciation adhesion Answer- a contract offered on a take it or leave it basis by an insurer, in which the insureds only option is to either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured adjustable life Answer- life insurance that permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period adjuster Answer- a representative of an insurance company who investigates and acts not he behalf of the company to obtain agreements for the amount of the insurance claim administrator Answer- an individual appointed by a court as a fiduciary to settle the financial affairs and estate of a deceased person admitted (authorized) insurer Answer- an insurance company authorized and licensed to transact business in a particular state adverse selection Answer- the tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability agency Answer- an insurance sales office or company 1 / 2
agent Answer- an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the insurer agent appointment Answer- the authorization of an agent to act for or represent and insurer agents authority Answer- special powers granted to an agent by his or her agency contract aleatory Answer- 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 Answer- an insurance company that is incorporated outside the united states annual statement Answer- a detailed financial report that an insurance company must submit every year to the insurance department of states in which it conducts business annuity Answer- a contract that provides income for a specified period of years or life apparent authority Answer- 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 Answer- a person making application for, or offering himself, herself or another to be insured under an insurance contract application Answer- a document that provides information for underwriting purposes.after the policy is issued, any unanswered questions are considered waived by the insurer assignment Answer- the transfer of ownership rights of a life insurance policy from one person to another attained age Answer- the age of the insured at a determined date attending physicians statement (aps) Answer- a statement usually obtained from the applicants doctor authorized (admitted) insurer Answer- an insurance company authorized and licensed to transact business in a particular state avoidance Answer- a method of dealing with risk by deliberately keeping away form it (ex. if a person wanted to avoid the risk of being killed in an airplane crash, he or she might choose to never fly in a plane)
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