ND Life & Health flashcards
ND 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.
- Insurance Commissioner
- North Dakota's elected statewide official who heads the Insurance Department, enforces insurance laws, examines insurers, and issues licenses and penalties.
- Certificate of Authority
- A license issued by the North Dakota Insurance Department that authorizes an insurer to transact insurance business in the state.
- Producer Appointment
- An insurer's written authorization, filed with the Department, that allows a licensed producer to solicit and sell business on that insurer's behalf.
- Continuing Education
- North Dakota producers must complete 24 hours of approved continuing education every two years, including at least 3 hours of ethics, to renew a license.
- Free-Look Period
- A policy owner may return an individual life policy or annuity within at least 10 days of delivery for a full premium refund.
- Unfair Trade Practice
- Acts such as misrepresentation, twisting, rebating, or unfair claim settlement that violate insurance law and can lead to fines, suspension, or revocation.
- Guaranty Association
- The North Dakota Life and Health Insurance Guaranty Association pays covered claims, such as up to $300,000 of life death benefit, when a member insurer becomes insolvent.
- Cease-and-Desist Order
- A Department order directing a person or insurer to stop an unlawful insurance practice; violations can bring civil penalties or license action.
- Insurable Interest
- A financial or love-and-affection relationship that must exist at policy inception; without it the life insurance contract is void.
- Term Life Insurance
- Pure death protection for a specified period with no cash value; the policy pays only if the insured dies during the term.
- Whole Life Insurance
- Permanent coverage with level premiums, guaranteed cash value, and a maturity age, typically 100 or 121.
- Universal Life Insurance
- Permanent coverage with flexible premiums and an adjustable death benefit; the cash value earns interest subject to a guaranteed minimum.
- Variable Annuity
- A securities-based annuity whose value fluctuates with subaccount investments; the producer needs a life license plus FINRA registration and must deliver a prospectus.
- Nonforfeiture Options
- Choices for whole life cash value: cash surrender, reduced paid-up insurance, or extended term insurance for the original face amount.
- 1035 Exchange
- A tax-free transfer of a life insurance policy, annuity, or endowment into a new policy or annuity of like kind.
- Modified Endowment Contract
- A life policy that fails the 7-pay test; withdrawals and loans are taxed LIFO, and gains before age 59½ face a 10% penalty.
- Deductible
- The amount an insured must pay out of pocket for covered services each year before the health insurer begins paying benefits.
- Coinsurance
- The percentage of covered medical costs the insured shares after the deductible, such as 20% under an 80/20 plan.
- HMO
- A health maintenance organization uses a network and a primary care gatekeeper; non-emergency specialist care requires a referral.
- Medicare Part A
- Hospital insurance covering inpatient care, skilled nursing, hospice, and some home health; premium-free with 40 quarters of work.
- Medigap Open Enrollment
- A six-month window starting when Part B begins; insurers must sell Medigap policies on a guaranteed-issue basis regardless of health.
- COBRA Continuation
- Federal law letting employees and dependents keep group health coverage after qualifying events, generally 18 months, or 36 months for death, divorce, or Medicare.
- Elimination Period
- The waiting period after a disability begins before disability income benefits become payable; longer periods lower the premium.
- Coordination of Benefits
- Rules that decide which health plan pays first when a person has two coverages; the birthday rule applies to dependent children.
- Entire Contract Clause
- The policy and the attached application are the whole agreement; no one except an authorized officer can change the contract, and only by endorsement.
- Incontestability Clause
- After the policy has been in force two years, the insurer cannot contest it for misrepresentation, except for nonpayment of premium.
- Grace Period
- A period, typically 30 days for life insurance, during which an overdue premium can be paid while coverage remains in force.
- Reinstatement Provision
- Restores a lapsed policy within three years if the insured provides evidence of insurability and pays overdue premiums plus interest.
- Waiver of Premium Rider
- Waives premiums while the insured is totally disabled, keeping the policy and its cash value in force.
- Guaranteed Insurability Rider
- Lets the insured buy additional coverage at specified dates or events without providing new evidence of insurability.
- Misstatement of Age
- If the insured's age or sex was misstated, the death benefit is adjusted to the amount the premium would have purchased at the correct age or sex.
- STOLI
- Stranger-originated life insurance: an investor with no insurable interest finances a policy for resale; it is prohibited as a wagering contract.