CHAPTER 8 / HOMEOWNERS INSURANCE
KEY CONCEPTS AND TERMS Appraisal clause(估价条款): The appraisal clause is used when the insured and insurer agree that the loss is covered, but the amount lf the loss is in dispute.
Fair rental value(公平的租用价值): Fair rental value means the rental value of that part of the residence premises rented to others or held for rental less any expense that do not continue while the premises are not fit to live in.
Mortgage clause(抵押条款): The mortgage clause is designed to protect the mortgagee’s insurable interest.
REVIEW QUESTIONS 1. List the basic coverages that are provided in Section I of the homeowners policy? (P75-P81) 2. What duties are imposed on the insured after a property loss occurs?(P87左)
3. Explain briefly how the mortgage clause protects the insurable interest of the mortgagee.
（P90）
CHAPTER 16 / FUNDAMENTALS OF LIFE INSURANCE
KEY CONCEPTS AND TERMS Legal reserve(法定准备金): Because the method of investing and accumulating the fund is regulated by state law, it is referred to as a legal reserve.
Level-premium method(均衡保费方法): Under the level-premium method, premiums do not increase from year to year but remain level throughout the premium paying period, and the insured has lifetime protection to age 100.
Met amount at risk(净风险额): The difference between the face amount of the policy and the legal reserve is called the met amount at risk.
Premature death(过早死亡): Premature death can be defined as the death of a family head with outstanding unfulfilled financial obligations, such as dependents to support, children to educate, and a mortgage to pay off.
Yearly renewable term Insurance(按年续保的定期寿险): Yearly renewable term insurance provide life insurance protection for only one year.
REVIEW QUESTIONS 1. Explain the meaning of premature death and identify the costs associated with it.(P114) 2. Explain the yearly renewable term method for providing life insurance to individuals.(P125) 3. Explain the level-premium method for providing life insurance to individuals.(P127)
CHAPTER 17 / TYPES OF LIFE INSURANCE
KEY CONCEPTS AND TERMS Cash surrender value(解约退还金): Ordinary life insurance also has an investment or saving element called a cash surrender value. The cash values are due to the overpayment of insurance premiums during the early year.
Endowment insurance(两全险): Endowment insurance is another traditional form of life insurance. An endowment policy pays the face amount of insurance if the insured dies within a specified period; if the insured survives to the end of the endowment period, the face amount is paid to the policyowner at that time.
Limited-payment policy(限期缴费终身寿险): A limited-payment policy is another type of traditional whole life insurance. The insurance is permanent, and the insured has lifetime protection. The premiums are level, but they are paid only for a certain period.
Ordinary life insurance(普通终身寿险): Also called straight life and continuous premium whole life, provides lifetime protection to age 100, and the death claim is a certainty.
Preferred risks(优良标准体保单): Many life insurers sell policies at lower rates to individuals known as preferred risks. These people are individuals whose mortality experience is expected to be lower than average.
Term insurance(定期寿险): Provides a death benefit if the insured dies during a specified period. Universal life insurance(万能寿险): Universal life insurance can be defined as a flexible premium policy that provides protection under a contract that unbundles the protection and saving components.
Variable life insurance(变额寿险): Variable life insurance can be defined as a fixed-premium policy in which the death benefit and cash surrender values vary according to the investment experience of a separate account maintained by the insurer.
Whole life insurance(终身寿险): Whole life insurance is a cash-value policy that provide lifetime protection.
REVIEW QUESTIONS 1. Describe the basic characteristics of term insurance. 2. When is the use of term insurance appropriate?
3. Describe the basic characteristics of ordinary life insurance. 4. Under what situations can an ordinary life policy be used? 5. Describe the basic features of a variable life insurance policy. 6. Explain the major characteristics of universal life insurance.
APPLICATION QUESTION 1. Mark, age 32, wants to purchase a five-year term insurance policy in the amount of $100,000.
The policy is both renewable and convertible,
a. Describe the situations under which term insurance can be used,
b. What rights does Mark have because the policy is renewable and convertible? Explain
your answer.
c. If Mark wishes to save money for retirement purposes, do you recommend purchase of
this contract?
d. Explain to Mark the advantages and disadvantages of a reentry term policy.