Key Concepts
Accidental Death and Dismemberment Insurance - Insurance providing payment if the insured's death results from an accident or if the insured accidentally severs a limb above the wrist or ankle joints or totally and irreversibly loses his or her eyesight.
Business Overhead Expense Insurance - A form of disability income coverage designed to pay necessary business overhead expenses, such as rent, should the insured business owner become disabled.
Contributory Plans - Group insurance plans issued to an employer under which both the employer and employees contribute to the cost of the plan. Generally, 75% of the eligible employees must be insured.
Conversion Privilege - Allows the policyowner, before an original insurance policy expires, to elect to have a new policy issued that will continue the insurance coverage. Conversion may be effected at attained age (premiums based on the age attained at time of conversion) or at original age (premiums based on age at time of original issue).
Disability Income Insurance - A type of health insurance coverage, it provides for the payment of regular, periodic income should the insured become disabled from illness or injury.
Employee Benefit Plans - Plans through which employers offer employees benefits such as coverage for medical expenses, disability, retirement, and death.
Master Policy - Issued to the employer under a group plan; contains all the insuring clauses defining employee benefits. Individual employees participating in the group plan receive individual certificates that outline highlights of the coverage.
Medical Expense Insurance - Pays benefits for nonsurgical doctors' fees commonly rendered in a hospital; sometimes pays for home and office calls.
Morbidity - The relative incidence of disability due to sickness or accident within a given group.
Noncontributory Plans - Employee benefit plans under which the employer bears the full cost of the employees' benefits; must insure 100% of eligible employees.
Nonparticipating Policies - Insurance under which the insured is not entitled to share in the divisible surplus of the company.
Participating Policies - Plan of insurance under which the policyowner receives shares (commonly called dividends) of the divisible surplus of the company.
Reimbursement Contract - Payment of health policy benefits to insured based on actual medical expenses incurred.
Renewability Provisions - Options that allow the policyowner to renew a policy before its termination date.
Reserves - Funds held by the company to help fulfill future claims.
Valued Contract - A contract of insurance that pays a stated amount in the event of a loss.
Familiarize yourself with the Key Concepts in Units 15, 24, and 25 in the Florida study manual.
