Insurance L&H License Key Vocabulary
Essential terms and definitions you must know before exam day.
Key Vocabulary
Rebating
Giving a client any portion of the premium or commission — an unfair trade practice.
COBRA
Consolidated Omnibus Budget Reconciliation Act — allows continued group health coverage after termination.
Cash value
The savings component of permanent life insurance; can be borrowed against or surrendered.
Annuity
An insurance product that pays periodic income — used for retirement income planning.
Vocabulary Study Tips
- 1.Know the four parts of Medicare (A, B, C, D) cold — multiple questions per exam.
- 2.Understand the difference between term and permanent life thoroughly including riders.
- 3.Unfair trade practices (rebating, twisting, churning, misrepresentation) are heavily tested.
- 4.Disability insurance definitions: own-occupation vs. any-occupation is a key distinction.