Delaware Life Insurance Exam Terms
(Questions and Answers) 2024
Accelerated Benefits - CORRECT ANSWER-Riders attached to life insurance policies
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which allow death benefits to be used to cover nursing home expenses or convalescent
home expenses
Accidental Death Benefits - CORRECT ANSWER-A policy rider that states that the
cause of death will be analyzed to determine if it complies with the policy description of
accidental death
Accidental Death Insurance - CORRECT ANSWER-An insurance policy that provides
payment if the insured's death is the result of an accident.
Accumilation Period - CORRECT ANSWER-The time before any annuitant's retirement
during which the annuitant is making payment or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - CORRECT ANSWER-An infectious and
incurable disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - CORRECT ANSWER-The required amount to pay damages
or for property loss, which is calculated based on the property's current replacement
value minus depreciation.
Actuary - CORRECT ANSWER-A person trained in the technical aspects of insurance
and related fields, particularly in the mathematics of insurance; a person who, on behalf
of the company, determines the mathematical probability of loss.
Adhesion - CORRECT ANSWER-A contract offered on a "take-it-or-leave-it" basis by an
insurer, in which the insured's only option is either to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
Adjustable Life - CORRECT ANSWER-Life insurance which permits changes in the face
amount, premium amount, period of protection, and the duration of the premium
payment period.
Adjuster - CORRECT ANSWER-A representative of an insurance company who
investigates and acts on the behalf of the company to obtain agreements for the amount
of the insurance claim.
Administrator - CORRECT ANSWER-An individual appointed by a court as a fiduciary
to settle the financial affairs and estate of a deceased person
Admitted (Authorized) Insurer - CORRECT ANSWER-An insurance company
authorized and licensed to transact business in a particular state.
Adult Day Care - CORRECT ANSWER-A program for impaired adults that attempts to
meet their health, social, and functional needs in a setting away from their homes.
Adverse Selection - CORRECT ANSWER-The tendency of risks with higher probability
of loss to purchase and maintain insurance more often than the risks who present lower
probability.
Agency - CORRECT ANSWER-An insurance sales office or company.
Agent - CORRECT ANSWER-An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer
Agent's Authority - CORRECT ANSWER-Special powers granted to an agent by his or
her agency contract.
Aleatory - CORRECT ANSWER-A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the insured will
pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - CORRECT ANSWER-An insurance company that is incorporated outside
the United States.
Alzheimer's Disease - CORRECT ANSWER-A disease that causes the victim to
become dysfunctional due to degeneration of brain cells and severe memory loss
Annual Statement - CORRECT ANSWER-A detailed financial report that an insurance
company must submit every year to the insurance department of state(s) in which it
conducts business.
Annuity - CORRECT ANSWER-A contract that provides income for a specified period of
years, or for life.
Apparent Authority - CORRECT ANSWER-The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
Applicant - CORRECT ANSWER-A person making application for, [Show Less]