Rhode Island Life Insurance Prep Study Guide Rated A+

Premium payment modes {Ans: Premiums can be paid: a) annually, b) semiannually, c) quarterly, d) monthly, e) through a bank check plan in which the premium is deducted on a monthly basis from the insured's bank account.}Mutual company {Ans: A company with no capital stock and his own by policyholders to share profits through dividends and who can attend and vote at company meetings.}Morbidity {Ans: The likelihood of illness or accident happening within a particular group of people}Renewable term life {Ans: Provides the right to renew at the end of each of the term(s) without evidence of insurability.}Cash surrender value {Ans: Non-forfeiture option in which the policyholder receive the policies cash value or cash accumulation is a lump sum}Primary insurance amount (PIA) {Ans: Under Social Security, the benefit a person receives if they elect to begin receiving retirement benefits at their normal retirement age.}