Term
| as a result of premiums remaining level throughout the premium-paying period in ordinary life insurance, the insured is actuarially |
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Definition
| overcharged during the early years and undercharged during the later years |
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Term
| since the premiums in ordinary life insurance are higher than what is actuarially necessary to pay death claims in the early years, the excess premiums paid are accumulated at compound interest and are then used to |
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Definition
| supplement the inadequate premiums paid during the later years of the policy |
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Term
| the excess premiums that are accumulated during the early years of ordinary life insurance are referred to as a |
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Definition
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Term
| technically is a liability item that must be offset by sufficient financial assets |
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Definition
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Term
| if the legal reserve is not offset by sufficient financial assets, regulatory officials may declare the insurer |
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Definition
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Term
| in ordinary life insurance, as the death rate increases with age, the legal reserve or saving component |
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Definition
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Term
| in ordinary life insurance, as the death rate increases with age, the legal reserve or savings component steadily increases and the pure insurance portion, called the net amount of risk, steadily |
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Definition
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Term
| the difference btwn the legal reserve and the face amt of insurance |
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Definition
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Term
| as a result of an increasing legal reserve and a decreasing net amt of risk, the cost of insurance can be kept w/in manageable bounds at all ages and |
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Definition
| the insurer can provide life time protection |
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Term
| the amt paid to the policy owner who surrenders the policy - found in ordinary life insurance |
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Definition
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Term
| cash values should not be confused with |
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Definition
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Term
| b/c of the loading for expenses and high first-year acquisition expenses, chad values are initially |
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Definition
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Term
| has the right to borrow the cash value or exercise one of the cash-surrender options |
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Definition
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