Irrevocable beneficiary

A beneficiary whose right cannot be changed or reversed without the policyholder obtaining their consent in writing.

Contingent beneficiary

The party designated to receive the policy proceeds only if the designated primary beneficiary has died before the insured.

Beneficiary

The persons, organization, or any other entity that the insured of the policy has designated to receive its benefits.

Insured

The person covered by an insurance policy.

Life annuity

It provides periodic benefit payments for at least the lifetime of a designated person.

Anti-selection or adverse selection

When selecting insurance risks, the major trend is to request or renew insurance policies of those who are known or suspected to have a probability higher than average of suffering a loss, than of those whose risks are unknown.

Policy anniversary

As a general rule, the date on which the coverage under the policy becomes effective.

Sickle cell anemia

Hemoglobin SS disease (Hb SS); sickle-cell disease. A disease transmitted from parents to children and which presents red cells in an abnormal crescent shape (red cells are usually disk-shaped). It is caused by an abnormal type of hemoglobin.

Insurance or sales agent

A person authorized by an insurance company and the Office of the Commissioner of Insurance of Puerto Rico to represent that company in negotiations with insurance applicants.