Which type of insurance is sometimes called temporary insurance quizlet?
Asked by: Dr. Teresa Harris | Last update: November 24, 2025Score: 4.1/5 (43 votes)
Which type of insurance is sometimes called temporary life insurance, whole life insurance, term insurance, straight life, ordinary life, cash value life?
Explanation: Another name for temporary life insurance is term insurance. This type of insurance is designed for a specific period of time, or term, typically in increments of 10, 20, or 30 years. The policy only pays out if the insured person dies within that term.
What is the most important part of an insurance agent's job?
Insurance sales agents must evaluate the needs of each client to determine the appropriate insurance policy. Communication skills. Insurance sales agents must listen to clients and be able to clearly explain suitable policies.
What is a financial contract written by an insurance company to provide you with a regular monthly income for as long as you live?
An annuity is a written contract typically between you and a life insurance company in which the insurance company makes a series of regularly spaced payments to you in return for a premium or premiums you have paid. An annuity is not life insurance. A life insurance policy provides benefits to your family if you die.
Which life insurance provision ensures that you will not have to forfeit all accrued benefits?
A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to nonpayment. Permanent life insurance, long-term disability, and long-term care insurance policies may have nonforfeiture clauses.
Temporary License on the Insurance Exam
What is a forfeiture in life insurance?
To keep your life insurance protection in place, you must make the scheduled premium payments. If you stop paying the premiums or cancel your policy outright, you can lose or forfeit your coverage.
Which insurance is kept in force for a person's entire life and pays a benefit upon the person's death when?
Whole life insurance provides coverage throughout the life of the insured person. In addition to paying a tax-free death benefit, whole life insurance also contains a savings component in which cash value may accumulate.
What is a document that temporarily obligates an insurance company to provide coverage while the issuance of a policy is pending?
Binder - A temporary insurance agreement that obligates the several parties of the contract if the loss insured against occurs before the policy is issued; a legal document pending issuance of the policy contract.
What is a contract between a person and an insurance company called?
An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance company's responsibilities if a loss occurs.
What is a contract with an insurance company that provides regular income for a set period of time usually for life?
Annuity - A contract that provides a periodic income at regular intervals, usually for life. Annuity Certain - A contract that provides an income for a specified number of years, regardless of life or death.
What is the hardest part of being an insurance agent?
What is the hardest part of being an insurance agent? The hardest part of being an insurance agent often revolves around the constant need for lead generation and sales. Many agents struggle with the cold calling aspect, where rejection is frequent, and maintaining a steady stream of new clients can be challenging.
Which of the following is the most common settlement option?
Some of the most common life insurance settlement options include receiving a lump sum payment, interest earnings only (with full or partial withdrawals made later), regular payments over a fixed period of time and life only payments for the rest of one's life (based on age).
What type of knowledge is often required of someone working with insurance?
Insurance agents use hard skills such as calculus, contract negotiation and knowledge of common sales methods often. It can be beneficial to be specific about your hard skills so hiring managers can gauge your industry expertise.
What is temporary insurance called?
Short-term health insurance (STLDI) is a temporary health plan designed to provide limited coverage during transitional periods, such as between jobs or waiting for ACA-compliant insurance. These plans are not ACA-compliant, typically last one to four months, and offer quick enrollment with minimal underwriting.
What type of insurance is temporary?
Temporary life insurance is a short-term policy you can purchase from an insurer while waiting for them to finish underwriting and finalizing a review of your policy application. If you pass away during the application, generally your assigned beneficiaries should receive the temporary policy's death benefit.
What insurance is considered temporary coverage?
STLDI is a type of health insurance coverage that is primarily designed to fill temporary gaps in coverage when an individual is transitioning from one plan or coverage to another, such as transitioning between health coverage offered by one employer to health coverage offered by another employer.
What is the most common source of insurance?
Most Americans receive health insurance through their employers. This is the case for farm operator households as well, since the majority of farm households have an operator or spouse employed off the farm.
What is it called when an insurance company refuses to pay a claim?
If your insurance company unreasonably delays or denies your claim, you may have a claim for bad faith.
Which of the following is the most common way to transfer risk?
The most common way to transfer risk is through an insurance policy, where the insurance carrier assumes the defined risks for the policyholder in exchange for a fee, or insurance premium, and will cover the costs for worker injuries and property damage.
How long does it take to get an insurance binder?
It usually takes only a couple of days to get an insurance binder. While you wait for a new policy, the insurance binder specifies all the protections for which you are covered, as well as any coverage limits, deductibles, fees and terms and conditions.
Why is Progressive asking for verification?
Pre-Binding Verification (PBV) is a process to identify customers with potentially high loss ratios or a suspicion of fraud before coverage is bound. When PBV is triggered, Progressive will verify the customer's identity and other information to ensure fair and accurate pricing and reduce the chance of fraud.
What provides temporary insurance pending issuance of the insurance contract?
Binder - A temporary insurance contract issued either by an agent or a company, pending execution of the policy contract or endorsement.
What kind of life insurance starts out as temporary coverage Quizlet?
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? Convertible Term provides temporary coverage that may be changed to permanent coverage without evidence of insurability.
How long does it take for a beneficiary to receive money?
How long does it take for beneficiaries to receive life insurance money? Life insurers typically take 14 to 60 days to pay out the death benefit after the beneficiary files the claim. This is because they must verify the policy terms and policyholder's death certificate and confirm who the beneficiaries are.
Who gets money if the beneficiary is deceased?
If you named more than one primary beneficiary and one of them dies, the remaining beneficiaries would be entitled to the death benefit. Typically, they'd each receive the same amount of money, but you can request a different type of distribution if you'd like.