Insurance Policy Terms and Provisions ch 5 flashcards

Front

Absolute Assignment

Back

A policy assignment where the assignee receives full control over the policy and full rights to its benefits.

Front

Accidental Death Benefit (Multiple Indemnity) Rider

Back

Pays an additional sum to the beneficiary if the insured dies due to a covered accident, often a multiple of the policy face amount.

Front

Accelerated Benefits Rider

Back

Allows the insured to receive a portion of the death benefit before death if they have a terminal illness.

Front

Accumulate Interest Option

Back

Allows the policy owner to leave dividends with the insurer to accumulate interest, with taxes on any interest generated.

Front

Assignment Clause

Back

Allows for the right to transfer policy rights to another person or entity.

Front

Automatic Premium Loan Provision (or Rider)

Back

Allows the insurance company to deduct overdue premium from an insured’s cash value if a payment is missed.

Front

Cash Option

Back

Allows policy owners to cash out the dividends they receive.

Front

Cash Surrender Option

Back

Allows the policy owner to receive the policy’s cash value, ending coverage.

Front

Collateral Assignment

Back

Assignment of a policy to a creditor as security for a debt.

Front

Consideration Clause

Back

States a policy owner must pay a premium in exchange for the insurer’s promise to pay benefits.