Sc Life, Accident And Health Study Guide Rated A+

Business Insurance {Ans: Life or Health insurance written to cover business situations such as key person, sole proprietor, partnership, corporations, etc.}Nonparticipating {Ans: Insurance that does not pay policy dividends to policyholders, which are issued by stock insurance companies. Stock insurers may pay dividends, but if so, they are paid to the stockholders and they are taxable.}Major Medical Insurance {Ans: A type of health insurance that provides benefits for most types of medical expenses incurred up to a deductible. Such contracts may contain a Percentage Participation clause (sometimes called the Co-insurance clause). A Major Medical policy pays expenses both in and out of the hospital.}ADB {Ans: Accidental Death Benefit, also known as Double or Triple Indemnity. A rider added to a Life policy that will pay double the face amount if the insured dies as a result of accident, generally within 90 days of the accident.}Policy Fee {Ans: A special, one-time premium charge to offset in whole or in part the first year acquisition cost rather than amortize it over several years.}Convertible Term Insurance {Ans: A Term policy that can be converted at any time to a permanent type of coverage without proof of insurability.