chapter 19-3 life, health, and social insurance

HMO

Health Maintenance Organization: Individuals pay a fixed amount and get access to facilities within the plan

primary care physician

Medical doctor who provides physical checkups and general care

Grace Period

Period of time after a borrower graduates, leaves school or drops below half-time enrollment where they are not required to make certain federal loan payments.

PPO

Preferred provider organization. A prepaid health insurance plan in which providers agree to deliver services for discount fees; patients can go to any provider, but using nonparticipating providers results in higher costs to the patient

life insurance

Provides payment to beneficiaries who were named by the insured person

Pre-existing condition

any medical condition that was diagnosed and/or treated within a specified period of time immediately preceding the enrollee's effective date of coverage.

exemptions

excuse the insurer from the obligation to pay the death benefit

Underwriting

the process of selecting, classifying, and pricing applicants for insurance

Incontestability Clause

this clause prohibits the insurer from refusing to perform due to misrepresentation or fraud after the policy has been in effect for a specified period of time- usually two years.