NJ LIFE INSURANCE

Agency

agent

aleatory

alien insurer

annuity

apparent authority

applicant

Application

assignment

attained age

An insurance company authorized and licensed to transact business in a particular state.

Avoidance

Beneficiary

The person who receives the proceeds from the policy when the insured dies.

Birthday Rule

Broker

Buy-Sell Agreement

Buyer's Guide

Cash Value

Certificate

Certificate of Authority

Certificate of Insurance

Claim

A request for payment of the benefits provided by an insurance contract.

Coercion

Coinsurance Clause

Commingling

Commission

Commissioner

Concealment

Conditional Contract

Consideration

Consumer Report

Contract

Contributory

Controlled Business

Convertible

Coverage

Death Benefit

Decreasing Term

Defamation

Dependent

Director

Disclosure

An act of identifying the name of the producer, representative or firm, limited insurance representative, or temporary insurance producer on any policy solicitation.

Domestic Insurer

Domicile of Insurer

Insurer's location of incorporation and the legal ability to write business in a state.

Earned Premium

Endorsement

Estoppel

A legal impediment to denying a fact or restoring a right that has been previously waived.

Exclusions

Expiration

The date specified in the policy as the date of termination

Express Authority

Extension of Benefits

Face

Fair Credit Reporting Act

Fiduciary

Fixed Annuity

Flexible Premium

Foreign Insurer

An insurance company that is incorporated in another state

Fraternal Benefit Societies

Fraud

Intentional misrepresentation or deceit with the intent to induce a person to part with something of value.

Free Look

Grace Period

Hazard

implied authority

Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal

insurable interest

insurance

insured

insurer

An entity that indemnifies against losses, provides benefits, or renders services (also known as "company" or "insurance company").

insuring clause

A general statement that identifies the basic agreement between the insurance company and the insured, usually located on the first page of the policy

Investigative Consumer Reports

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Lapse

Law of Large Numbers

A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss.

Life Expectancy

Limited pay whole life

Organizations that provide support facilities for underwriters or groups of individuals that accept insurance risk

loss

maturity date

An information database that stores the health histories of individuals who have applied for insurance in the past. Most insurance companies subscribe to this database for underwriting purposes.

misrepresentation

A false statement or lie that can render the contract void.

An insurance company that has not applied for, or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state

An insurance company that has not applied for, or has applied and been denied a Certificate of Authority and may not transact insurance in a particular state

Noncancellable

An insurance contract that the insured has a right to continue in force by payment of premiums that remain the same for a substantial period of time

Nonmedical

Nonrenewal

Nonresident Agent

Option

Overinsurance

Paid-Up Insurance

Payor Benefit

Peril

The cause of a possible loss

Permanent Life Insurance

Persistency

Personal Contract

Physical Exam and Autopsy

A provision that allows an insurer, at its own expense, to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law.

Policyholder

Policyowner

The person who is entitled to exercise the rights and privileges in the policy. This person may or may not be the insured.

Preferred Risk

An insurance classification for applicants who have a lower expectation of incurring loss, and who, therefore, are covered at a reduced rate.

Premium

Primary Beneficiary

Primary Policy

A basic, fundamental insurance policy which pays first with respect to other outstanding policies.

Principal Amount

The full face value of a policy

Insurance furnished by nongovernmental insuring organizations

Termination of an insurance policy, with an adjustment of the premium charge in proportion to the exact coverage that has been in force

Producer

Insurance agent or broker

Qualified Plan

Rate Service Organization

Rebating

Any inducement offered in the sale of insurance products that is not specified in the policy.

Reciprocal Exchange

Reciprocity

Reduction

Reinsurance

Renewability Clause

Renewable Term

Representations

Recission

The termination of an insurance contract due either to material misrepresentation by the insured or by fraud, misrepresentation, or duress on the part of the agent/insurer

Retention

A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.

Rider

Risk

Risk, Pure

Risk

Rollover

Settlement Options

Sharing

Speculative Risk

Standard Provisions

Standard Risk

Stock Companies

Substandard Risk

Superintendent

Surrender

Term Insurance

Terminally Ill

Total Disability

Transfer

Twisting

Underwriting

underwriter

A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.

Unilateral Contract

A contract that legally binds only one party to contractual obligations after the premium is paid.

Universal Life

Utmost Good Faith

Waiting Period

Time between the beginning of a disability and the start of disability insurance benefits.

Waiver

The voluntary abandonment of a known or legal right or advantage

Waiver of Premium

Warranty

A material stipulation in the policy that if breached may void coverage.