GA Life & Health flashcards
GA 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.
- Georgia Insurance Commissioner
- Elected statewide official who enforces Georgia insurance laws, licenses producers and insurers, conducts examinations, and may impose fines or revoke licenses.
- Producer appointment
- Authorization by an insurer filed with the Georgia Insurance Commissioner that lets a licensed producer solicit, negotiate, or sell that insurer's products.
- Continuing education requirement
- Georgia resident producers generally must complete 24 hours of CE every two years, including at least 3 hours of ethics, to renew a license.
- Rebating
- Offering part of a producer's commission or anything of value not stated in the policy to induce a purchase; prohibited as an unfair trade practice in Georgia.
- Twisting
- Misrepresenting an existing policy to persuade a policyholder to lapse or replace it; an unfair trade practice subject to penalties.
- Fiduciary premium duty
- A producer who collects premiums holds them in trust for the insurer and must remit them promptly; commingling premium funds with personal money is prohibited.
- Insurable interest
- A financial or legal interest in the continued life or health of the insured that must exist at application for life insurance; otherwise the contract is void.
- Peril versus hazard
- A peril is the cause of loss, such as fire or death; a hazard is a condition that increases the chance or severity of loss.
- Moral hazard
- A condition reflecting dishonesty or character, such as fraud or false claims, that increases the likelihood or size of an insurance loss.
- Indemnity principle
- Insurance restores the insured to approximately the same financial position after a loss, not to a profit; life insurance is an exception because it is valued.
- Utmost good faith
- Both applicant and insurer must disclose material facts; concealment or material misrepresentation can allow the insurer to rescind coverage.
- Adhesion contract
- An insurance policy drafted by the insurer and offered on a take-it-or-leave-it basis; ambiguities are generally construed against the insurer.
- Incontestability clause
- After two years, an insurer generally cannot deny a claim or rescind for misrepresentation on the application, except for nonpayment of premium.
- Suicide clause
- Life policy provision limiting payout if the insured dies by suicide within a stated period, usually two years; the insurer refunds premiums instead of paying the face amount.
- Grace period
- Period after the premium due date, commonly 31 days for life insurance, during which coverage remains in force and the premium may be paid without penalty.
- Reinstatement provision
- Allows a lapsed life policy to be restored within a set period, usually three years, upon evidence of insurability and payment of overdue premiums with interest.
- Nonforfeiture options
- Choices available when a cash-value life policy is surrendered or lapses: cash surrender value, reduced paid-up insurance, or extended term insurance.
- Dividend options
- Ways a participating policyholder may receive dividends: cash, premium reduction, accumulate at interest, paid-up additions, or one-year term insurance.
- Accelerated death benefit
- Rider allowing part of a life policy's death benefit to be paid early when the insured is diagnosed with a terminal illness or qualifying condition.
- Settlement options
- Methods for paying life insurance proceeds, including lump sum, interest only, fixed period, fixed amount, and life income arrangements.
- Deferred annuity
- An annuity with an accumulation phase before income payments begin; earnings grow tax deferred until withdrawal or annuitization.
- Exclusion ratio
- Formula that determines the nontaxable portion of each annuity payment: investment in the contract divided by expected return; the remainder is taxable.
- Joint and survivor annuity
- Annuity payout that continues as long as either of two annuitants lives, often at a reduced amount after the first death.
- Surrender charge
- Fee imposed by an annuity insurer for withdrawing money during the early contract years, often declining over a set schedule.
- Fixed annuity
- Annuity in which the insurer guarantees a stated rate of interest during accumulation and a fixed payment amount during annuitization.
- Variable annuity
- Annuity whose value fluctuates with underlying investments; it is a security as well as an insurance product and requires proper securities licensing to sell.
- Coinsurance
- The percentage of covered medical expenses the insured pays after the deductible, while the insurer pays the remaining percentage until the out-of-pocket maximum is reached.
- HMO gatekeeper
- A primary care physician in a health maintenance organization who coordinates care and must authorize referrals to specialists for coverage.
- Elimination period
- The waiting period after a disability or illness begins before disability income or long-term care benefits become payable.
- Coordination of benefits
- Rules that determine which health plan pays first when a person is covered by more than one plan, preventing duplicate payment for the same expense.
- Medicare Part A
- Federal hospital insurance covering inpatient hospital stays, skilled nursing facility care, hospice, and some home health care for eligible beneficiaries.
- AD&D principal sum
- The amount payable for accidental death under an accidental death and dismemberment policy; dismemberment benefits are a stated percentage of that principal sum.