Shared Flashcard Set

Details

Chap 11-21
Section 21
13
Finance
Undergraduate 4
10/27/2011

Additional Finance Flashcards

 


 

Cards

Term
also called interest-sensitive whole life insurance
Definition
current assumption who life insurance
Term
is a nonparticipating whole life policy in which the cash values are based on the insurer's current mortality rate
Definition
current assumption whole life insurance
Term
a policy that does not pay dividends
Definition
nonparticipating policy
Term
in a current assumption whole life policy, an accumulation account reflects
Definition
the cash value
Term
in a current assumption whole life policy, what account is credited with premiums paid less expenses and mortality charges plus interest based on current rates?
Definition
accumulation account
Term
in a current assumption whole life policy, if the policy is surrendered, a surrender charge that declines over time is deducted from the
Definition
accumulation account
Term
in a current assumption whole life policy, why is a surrender charge deducted from the accumulation account if the policy is surrendered?
Definition
to determine net cash-surrender value
Term
in a current assumption whole life policy, the minimum cash values are based on the
Definition
guaranteed interest rate
Term
is credited with a higher interest rate based on current market conditions and company experience
Definition
accumulation account
Term
in a current assumption whole life policy, a fixed death benefit and maximum premium level at the time of issue are
Definition
state in the policy
Term
under the low-premium version of current assumption whole life policies, the initial premium is substantially lower than the premium paid for a
Definition
regular, nonparticipating whole life policy
Term
is initially guaranteed only for a certain period of time
Definition
low premium
Term
after the low premium period expires, what allows the insurer to recalculate the premium?
Definition
redetermination provision
Supporting users have an ad free experience!