CT Life & Health flashcards
CT Life & Health · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Certificate of authority
- A license issued by a state insurance department that authorizes an insurer to transact insurance business in that state.
- Fiduciary responsibility
- Producers who handle premiums or client funds must hold them in a fiduciary capacity, keep them separate, and avoid commingling with personal funds.
- Unfair trade practice
- An insurance sales or claims practice prohibited by state law, such as rebating, twisting, misrepresentation, coercion, or false advertising.
- Insurable interest
- A financial or emotional stake in the continued life or health of an insured person that supports issuing a policy and must exist at application.
- Adverse selection
- The tendency for people with higher-than-average risk to seek insurance more often than lower-risk people, which can raise costs for insurers.
- Utmost good faith
- A principle requiring both insurer and applicant to deal honestly, disclose material facts, and avoid concealment during underwriting and claims.
- Conditional receipt
- A receipt given at application that provides temporary coverage only if the applicant is insurable under the insurer's rules and conditions are met.
- Mortality and morbidity
- Mortality measures death rates used in life insurance pricing; morbidity measures illness or disability rates used in health insurance pricing.
- Premium mode
- The frequency of premium payments, such as annual, semiannual, quarterly, or monthly; more frequent modes usually cost more per year.
- Term life insurance
- Life coverage for a specified period that pays a death benefit if the insured dies during the term and generally builds no cash value.
- Universal life insurance
- Permanent life insurance with flexible premiums and an adjustable death benefit; cash value grows by credited interest minus insurance charges and expenses.
- Variable life insurance
- Permanent life insurance whose cash value is invested in separate-account subaccounts; the policyowner bears investment risk and receives a prospectus.
- Incontestability clause
- A policy provision stating that after a stated period, usually two years, the insurer cannot contest the policy for misrepresentation except for nonpayment.
- Nonforfeiture options
- Choices available when a cash-value life policy is surrendered or lapses, including cash surrender, reduced paid-up insurance, and extended term insurance.
- Waiver of premium rider
- A rider that waives premiums due while the insured is totally disabled for a specified waiting period, keeping the policy in force.
- Automatic premium loan
- A provision that uses available cash value to pay an overdue premium at the end of the grace period to prevent unintentional lapse.
- Deferred annuity
- An annuity with an accumulation phase before income payments begin; it may be funded by a single premium or flexible premiums.
- Annuitization
- The process of converting an annuity's accumulated value into a series of periodic income payments, often for life or a set period.
- Surrender charge
- A fee charged by an insurer for withdrawing money from an annuity or cash-value policy during an early surrender period.
- Modified endowment contract
- A life policy that fails the seven-pay test; cash withdrawals and loans are taxed first as income and may incur a 10% penalty before age 59½.
- Exclusion ratio
- For annuities, the portion of each income payment that represents a tax-free return of after-tax premium, calculated using expected return.
- Death benefit taxation
- Life insurance proceeds paid because of the insured's death are generally free of federal income tax to the beneficiary.
- Health maintenance organization
- A managed-care plan that provides care through a network, often requires a primary care physician, and may require referrals for specialists.
- Out-of-pocket maximum
- The most a covered person pays for covered in-network care in a plan year, after which the plan generally pays 100% of covered benefits.
- Coordination of benefits
- Rules that determine which health plan pays first when a person is covered by more than one plan, preventing duplicate payment.
- Guaranteed renewable policy
- A health policy the insurer must renew at the policyowner's option, but the insurer may increase premiums by class.
- Elimination period
- The waiting period after a disability or loss begins before benefits become payable under a disability income policy.
- Pre-existing condition
- A health condition for which medical advice or treatment was received before coverage began, subject to applicable state and federal rules.
- Connecticut mini-COBRA
- Connecticut continuation law that lets employees of small employers generally keep group health coverage for up to 18 months after a qualifying event.
- Connecticut Paid Leave
- A state program providing up to 12 weeks of paid family and medical leave, funded by payroll contributions and administered by the Paid Leave Authority.
- Connecticut free look
- A period after delivery during which a Connecticut life insurance policyowner may return the policy for a refund, generally 10 days.
- Connecticut Insurance Department
- The state agency that licenses insurers and producers, reviews policy forms and rates, and enforces Connecticut insurance laws.