ICB Chapter 3- Concepts & Terms Part 3

The policy holder can transfer the rights of his/her insurance policy to another for various reasons and this process is called....................................

• Insurance

• Assignment

• Assignor

• Assignee

True or False:

Once the rights have been transferred to the Assignee, the rights of the Assignor stands cancelled and the Assignee becomes the owner of the policy.

• True

• False

What is an Absolute Assignment?

• The reversible Transfer of Rights from the Assignee to the Assignor, without any further conditions applicable.

• The complete Transfer of Rights from the Assignment to the Assignee, with further conditions applicable.

• The complete Transfer of Rights from the Assignor to the Assignee, without any further conditions applicable.

A Temporary Assignment is also known as a _____________________

• Absolute Assignment

• Reversible Assignment

• Permanent Assignment

• Conditional Assignment

What is a Dividend?

• A dividend is an indefinite payment given by an insurance company to a policy owner.

• A dividend is a yearly or periodic payment given by an insurance company to a policy owner.

• A contract that is given to a policy owner monthly or periodically.

• A dividend is a payment given by an insurance company to a policy owner.

True or False:

Cash Option, Applied Dividends, Accumulates Interest, and Paid-up Additions are all Dividend Options.

• True

• False

The legally recognized financial relationship between the insured and the object or liability that is being insured is called_________________.

• Insurable Interest

• The Estate

• Dividend

• Assignment

The net worth of an individual’s worldly goods is referred to as _________________.

• Insurable Interest

• Assignment

• The Estate

• Dividend

Fill in the Blank.

Any policy reaching its expiry date, has not been renewed or extended is said to have__________.

What are the Two (2) types of Estates?

• Immediate & Growing

• Immediate & Dividend

• Growing & Insurable

• Dividend & Growing