WorksheetsInsurance Terminology ch 7 Quizs
Total questions: 20
Worksheet time: 10mins
Adverse Selection
The tendency of a disproportionate number of poor risks to seek or buy insurance or to maintain existing insurance in force.
The process of evaluating the risk of insuring a person or asset.
The practice of insurers denying coverage to high-risk individuals.
The method of calculating premiums based on the average risk of a group.
Fair Credit Reporting Act
A federal law allowing insurers to receive additional information regarding applicants. Applicants must be informed of the report's purpose.
A state law regulating the use of credit scores in lending decisions.
A federal law that prohibits discrimination based on credit history.
A guideline for consumers to dispute inaccuracies in their credit reports.
Inspection Report
Contains general information regarding the health, habits, finances, and reputation of an applicant. Developed by specialized firms.
A document that outlines the physical condition of a property and its compliance with safety standards.
A summary of an applicant's previous employment history and references.
A financial statement detailing an applicant's income and expenses.
Credit Report
A detailed account of an individual's employment history.
A summary of an insurance applicant’s credit history, including credit score, debt levels, and repayment history. Obtained from major credit bureaus.
A record of an individual's medical history and treatments.
A list of all bank accounts and their balances.
Field Underwriter
The agent or producer who completes the applicant’s application for insurance.
A person who evaluates insurance claims.
An individual responsible for marketing insurance products.
A representative who manages customer service inquiries.
Underwriting
The process of evaluating risks to determine insurance eligibility.
The method of calculating premiums based on market trends.
The analysis of information from various sources to determine whether insurance should be issued as requested.
The procedure for settling claims after an insurance event.
Policy Summary
A document that outlines the claims process for an insurance policy.
Summarizes the basic terms of an insurance policy, including conditions, coverage limitations, and premiums.
A detailed report of the insurance company's financial status.
A list of all the agents available for customer service.
Insurable Interest
The financial or emotional relationship justifying one owning a life insurance policy on another. Must exist at the time of policy issue.
A legal requirement for insurance policies that ensures the policyholder has a stake in the insured's life.
The amount of money that an insurance company is willing to pay out in the event of a claim.
The process of evaluating the risk associated with insuring a person or entity.
Proposed Insured
The person requesting that her life be insured, typically the applicant.
A person who is covered under an insurance policy.
An insurance agent who sells policies.
A beneficiary designated to receive the insurance payout.
Rated Policy (Rating Up)
A policy with an additional charge to the standard premium due to higher-than-average risk.
A policy that offers a discount on the standard premium for low-risk individuals.
A policy that has no additional charges and is standard for all clients.
A policy that is only available for high-net-worth individuals.
Special Class
An applicant who qualifies for a standard policy without any conditions.
An applicant who cannot qualify for a standard policy but may secure one with a rider waiving payment for certain health impairments.
An applicant who is automatically approved for all types of insurance policies.
An applicant who has a pre-existing condition that disqualifies them from any insurance policy.
Underwriter
A person who identifies, examines, and classifies the degree of risk represented by a proposed insured.
A financial advisor who manages investment portfolios.
A legal professional who drafts insurance contracts.
A claims adjuster who evaluates insurance claims.
Substandard Risk (Impaired Risk)
An applicant whose physical condition meets usual standards.
An applicant whose physical condition doesn’t meet usual standards and may be declined or written with a 'rated-up' premium.
An applicant who is guaranteed to be accepted regardless of health conditions.
An applicant who has a perfect health record and qualifies for the best rates.
Age Change
The date when the applicant turns a year older.
The date halfway between birthdays when the applicant’s age changes to the next higher age.
The date when the applicant's age is calculated based on their birth year.
The date when the applicant can apply for a new insurance policy.
Attending Physician Statement (APS)
Used when more information is needed about conditions revealed in the application or medical examiner’s report. Requires applicant's authorization.
A document that summarizes the applicant's medical history without needing any authorization.
A statement that is only required for applicants over the age of 50.
A form that is used to deny insurance claims without any medical review.
Applicant
A person who sells insurance policies.
A person completing an application with an insurance company for the insurance policy. The applicant is usually the proposed insured.
A person who reviews insurance claims.
A person who manages insurance agents.
Consumer Report (Investigative Consumer Report)
A brief summary of an applicant's job history.
A detailed background investigation about an applicant’s character, reputation, lifestyle, etc. Conducted without invasion of privacy.
A financial report detailing an applicant's credit score.
A simple questionnaire filled out by the applicant.
Application
A document used to apply for a loan.
The statement of information given when a person applies for life, health, or disability insurance. Used by the underwriter to determine acceptance.
A summary of medical history required for insurance.
A form that lists all available insurance policies.
Buyer's Guide
A document outlining the steps to purchase a car.
A pamphlet describing and comparing various forms of life or health insurance.
A guide for choosing the best investment options.
A manual for understanding credit scores.
Medical Information Bureau
A service organization collecting medical data on life and health insurance applicants for member insurance companies.
A government agency regulating health insurance policies.
A private company providing medical services to patients.
An organization that offers financial advice to insurance companies.
