Social Insurance
Provides retirement income through payroll taxes.
What is Social Security?
A situation involving the chance of loss.
What is Risk?
The individual who collects information and submits the application.
Who is the producer? (Agent)
The party who receives policy benefits.
Who is the beneficiary?
This state department regulates insurance in Illinois.
What is the Illinois Department of Insurance?
This program provides medical insurance for people 65 and older.n
What is Medicare?
When insurance is used to transfer risk to another party.
What is risk transfer?
The process of evaluating an application’s insurability.
What is underwriting?
This policy provision allows coverage to continue with late premium payments.
What is the grace period?
The number of hours of continuing education required every 2 years for IL producers.
What is 24 hours?
Provides benefits for work-related injuries regardless of fault.
What is Workers’ Compensation?
The principle stating insurance restores the insured to their financial position before a loss.
What is indemnity?
Temporary proof of insurance issued before a policy is written.
What is a binder?
The section of a policy explaining duties after a loss.
What are conditions?
The maximum number of years an IL insurance license can be inactive.
What is 12 months?
Joint federal and state medical assistance program for low-income individuals.
What is Medicaid?
When carelessness increases the likelihood of loss after insurance is purchased.
What is morale hazard?
Charging higher premium due to increased risk.
What is a substandard rating
Policy language that removes coverage for certain losses.
What are exclusions?
Misrepresentation, twisting, and rebating are examples of this type of act.
What are unfair trade practice?
Provides temporary income to eligible workers who lose their job involuntarily.
What is Unemployment Insurance?
Loss Exposure that affects large numbers of people or property at the same time.
What is a catastrophic loss?
An underwriting action that denies coverage completely.
What is rejection?
A provision that allows the insurer to recover from a third party after a paying a claim.
What is a subrogation?
The penalty that may include fines, suspension, or license revocation.
What is administrative action by the Director of Insurance?