Arkansas Life Insurance Exam Terms
Accelerated Benefits - answer Riders attached to life insurance policies which allow
death benefits to be used to cover nursing or convalescent home expenses.
Accidental Death Benefits - 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 - answer An insurance policy that provides payment if the
insured's death is the result of an accident.
Accumulation Period - answerThe time before an annuitant's retirement during which
the annuitant is making payments or investments in an annuity
Acquired Immunodeficiency Syndrome (AIDS) - answerAn infectious and incurable
disease caused by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) - answerThe required amount to pay damages or for property
loss. This amount is calculated based on the property's current replacement value
minus depreciation.
Actuary - answerA 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 - answerA contract offered on a "take-it-or leave-it" basis by an insurer, in
which the insured's only option is to either accept or reject the contract. Any ambiguities
in the contract will be settled in favor of the insured.
Adjustable Life - answerLife insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium payment period.
Adjuster - answerA 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 - answerAn individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - answerAn insurance company authorized and licensed
to transact business in a particular state.
