Term
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Definition
| Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. |
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Term
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Definition
| To restore the insured to the same condition as prior to loss with no intent of loss or gain. |
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Term
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Definition
| A member organization which is unable to pay it contractual obligations and is placed under a final order of liquidation or rehabilitation by a court of competent jurisdiction. |
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Term
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Definition
| The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance. |
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Term
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Definition
| A contract whereby on party (insurer) agrees to indemnify or guarantee another party (insured) against a loss by specified future contingency or peril in return for a payment of a premium. |
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Term
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Definition
| The person or organization that is protected by insurance; the party is to be indemnified. |
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Term
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Definition
| An entity that indemnifies against losses, provides benefits, or renders services (also know as 'company' or 'insruance company') |
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Term
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Definition
| A general statement that identifies the basic agreement between the insurance company and the insured, usually located on the first page of the policy. |
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Term
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Definition
| An act that is intended to cause injury. Self-inflicted injuries are not covered under accident insurance; intentional injuries inflicted on the insured by another are covered. |
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Term
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Definition
| A level of care that is one step down from skilled nursing care; provided under the supervision of physicians or registered nurses. |
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Term
| Investigative Consumer Reports |
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Definition
| A report similar to consumer report, but one that also provides information on the consumer's character, reputation, and habits. |
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Term
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Definition
| The individuals age when the policy has been issued. |
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Term
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Definition
| A single policy that is designed to insure two or more lives. |
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Term
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Definition
| Any life insurance written on the life of a minor. |
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Term
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Definition
| Termination of a policy because the premium has not been paid by the end of the grace period. |
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Term
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Definition
| A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss. |
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Term
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Definition
| The accounting measurement of an insurer's future obligations to pay claims to policy owners. |
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Term
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Definition
| A policy premium that remains the same over the period of time premiums are paid. |
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Term
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Definition
| Average number of years remaining for a person of a given age to live, as shown on the mortality table. |
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Term
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Definition
| An arrangement that allows the policy owner to sell their existing life insurance policy to a third party for compensation. |
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Term
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Definition
| A variation of whole life insurance that charges a level annual premium and provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. Limited- pay life is designed so that the premiums for the coverage will be completely paid up well before age 100. |
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Term
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Definition
| Selling assets as method of raising capital. |
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Term
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Definition
| A rider attached to a life insurance policy that provides LTC (Long Term Care) benefits or benefits for the terminally ill by using available life insurance benefits (i.e. cash value). |
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Term
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Definition
| Organizations that provide support facilities for underwriters or groups of individuals that accept risk insurance. |
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Term
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Definition
| The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral. |
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Term
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Definition
| The reduction, decrease, or disappearance of value of the person or property insured in a policy, by peril insured against. |
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Term
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Definition
| Settlement method that pats the beneficiary the entire proceeds of a life insurance policy in one payment rather than installments. |
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Term
| Market Value Adjusted Annuity |
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Definition
| A single-premium deferred annuity that allows the contract owner to lock in a guaranteed interest rate over a specified maturity period. |
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Term
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Definition
| The date when the face amount of the life insurance policy becomes payable. |
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Term
| Medical Information Bureau (MIB) |
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Definition
| An information database that stores the heath histories of individuals who have applied for insurance in the past. Most insurance companies subscribe to this database for underwriting purposes. |
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Term
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Definition
| A false statement or lie that can render a contract void. |
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Term
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Definition
| The method of premium payment, whether annually, semiannually, quarterly, or monthly. |
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Term
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Definition
| The ratio of the incidence of sickness to the number of well persons in a given group of people over a certain period of time. |
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Term
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Definition
| A table showing the incidence of sickness at specified ages. |
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Term
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Definition
| A table showing the probability of death at specified ages. |
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Term
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Definition
| Insurance organizations that have no capital stock, but are owned by the policy holders. |
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Term
| Nonadmitted (Nonauthorized) |
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Definition
| An insurance company that has not applied for, or has applied for and been denied a Certificate of Authority and may not transact insurance in a particular state. |
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Term
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Definition
| An insurance contract that the inured has a right to continue in force by payment of premiums that remain the same for a substantial period of time. |
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Term
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Definition
| Those guaranteed values in a life insurance policy that cannot be taken from the insured, even if her or she ceases to pay premiums. |
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Term
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Definition
| A life or health insurance policy that is underwritten based on the insured's statement of health rather than a medical examination. |
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Term
| Nonparticipating Policies (Non-Par) |
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Definition
| Insurance does not pay dividends. |
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Term
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Definition
| A type of benefit plan that may discriminate, is not required to be filed with the IRS, and does not provide a current tax deductions for contributions. |
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Term
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Definition
| A termination of policy by an insurer on the anniversary or renewal date. |
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Term
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Definition
| An agent that is licensed in a state in which he or she is not a resident. |
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Term
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Definition
| A choice of ways of receiving policy dividends, non-forfeiture values, death benefits, or cash values. |
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Term
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Definition
| An excessive amount of insurance that would result in overpayment to insured in the event of a loss. |
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Term
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Definition
| A policy on which all premiums have been paid but which has not matured due to either death or endowment. |
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Term
| Participating Policies (Par) |
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Definition
| Insurance that pays out dividends to policyholders. |
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Term
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Definition
| A rider found in juvenile policies which waives the premiums if the person paying them (often a parent) is disabled or dies while the child is still a minor. |
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Term
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Definition
| The cause of a possible loss. |
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Term
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Definition
| A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid. |
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Term
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Definition
| The tendency or likelihood of insurance policies not lapsing or being replaced with insurance from another insurer. |
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Term
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Definition
| An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest. |
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Term
| Physical Exam and Autopsy |
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Definition
| A provision that allows an insurer, at it's own expense, to have an insured physically examined when a claim is pending or to have an autopsy performed where not prohibited by law. |
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Term
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Definition
| A non-forfeiture value in which an insurer loans part or all of the cash value of the policy assigned as security for the loan to the policyholder. |
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Term
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Definition
| The person who is entitled to exercise the rights and privileges in the policy. This person mat or may not be the insured. |
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Term
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Definition
| An insurance classification for applicants who have a lower expectation of incurring loss, and who, therefore, are covered at a reduced rate. |
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Term
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Definition
| A periodic payment to the insurance company to keep the policy in force. |
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Term
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Definition
| The person who is named s first to receive benefits from a policy. |
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Term
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Definition
| A basic, fundamental insurance policy which pays first with respect to other outstanding policies. |
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Term
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Definition
| The full face value of a policy. |
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Term
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Definition
| Insurance furnished by non-governmental insuring organizations. |
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Term
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Definition
| Termination of an insurance policy, with an adjustment of the premium charge in proportion to the exact coverage that has been in force. |
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Term
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Definition
| The amount payable by the insurance company, usually in at the insured's death or when the policy matures. |
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Term
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Definition
| Insurance agent or broker. |
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Term
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Definition
| Insurance whereby premiums are paid for protection in the event of death or disability, not for cash value accumulation. |
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Term
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Definition
| A retirement plan that meets the IRS guidelines for receiving favorable tax treatment. |
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Term
| Rate Service Organization |
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Definition
| An organization that is formed by, or on behalf of, a group of insurers to develop rates for those insurers, and to file the rated with the insurance department on behalf of its member. They may also act as a collection point for actuarial data. |
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Term
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Definition
| Any inducement offered in the sale of insurance products that is not specified in the policy. |
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Term
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Definition
| An unincorporated group of individuals who mutually insure one another, each separately assuming a share of each risk. |
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Term
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Definition
| A situation in which two parties provide the same help or advantages to each other. For example: Producer A living in State A can transact business as a nonresident in State B if State B's producers can transact business in State A) |
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Term
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Definition
| Lessening the possibility or severity of a loss. |
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Term
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Definition
| A form of insurance whereby one insurance company (the re-insurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued. |
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Term
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Definition
| A clause that defines the insurance company's and the insured's right to cancel or renew coverage. |
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Term
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Definition
| Insurance which can, at the election of the policy owner be renewed at the end of a term without evidence of insurability. |
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Term
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Definition
| Statements made by the applicant on the insurance application that are believed to be true, but are not guaranteed to be true. |
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Term
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Definition
| The termination of an insurance contract due either to material misrepresentation by the insured or by fraud, misrepresentation, or duress on the part of the agent/insurer. |
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Term
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Definition
| A method of dealing with risk my intentionally or unintentionally keeping a portion of it for the insured account; the amount of responsibility assumed but not re-insured by the insurance company. |
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Term
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Definition
| Any supplemental agreement attached to and made part of the policy indication the policy expansion by additional coverage, or waiver of coverage or condition. |
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Term
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Definition
| Uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain. |
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Term
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Definition
| The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain. |
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Term
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Definition
| A liability insurance company owned by its members which are exposed to similar liability risks by virtue of being in the same business or industry. |
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Term
| Risk, Speculative (Speculative Risk) |
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Definition
| The uncertainty or chance of loss occurring in a situation that involves the opportunity for either gain or loss. |
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Term
| Risk, Standard (Standard Risk) |
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Definition
| An applicant or insured who is considered to have an average probability of a loss based on health, vocation, and lifestyle. |
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Term
| Risk, Substandard (Substandard Risk) |
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Definition
| An applicant or insured who has a higher than normal probability of loss, and who may be subject to an increased premium. |
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Term
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Definition
| Withdrawing the money from a qualified plan and placing it into another qualified plan. |
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Term
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Definition
| The person who is named to receive benefits upon the death of the insured if the first-named (primary) beneficiary is no longer alive or does not collect all the benefits due to his/her own death. |
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Term
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Definition
| Choices available to the insured/owner for the distribution of insurance procedes. |
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Term
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Definition
| A method of dealing with risk for a group of individual person or businesses with the same or similar exposure to loss who share the losses that occur within that group. |
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Term
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Definition
| Canceling the policy with a less than proportionate return of premium. |
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Term
| Single Premium Whole Life (SPWL) |
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Definition
| A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time, lump sum payment. |
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Term
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Definition
| An uncertainty or chance of a loss occurring in a situation that involved the opportunity for either loss or gain. |
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Term
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Definition
| A clause that prevents the debtors of a beneficiary from collection the benefits before he/she receives them. |
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Term
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Definition
| Requirements approved by state law that must appear in all insurance polices. |
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Term
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Definition
| Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company. |
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Term
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Definition
| A basic policy that charges level annual premium for the lifetime of the insured and provides a level, guaranteed death benefit. |
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Term
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Definition
| The head of the state department of insurance. |
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Term
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Definition
| An act of giving up a life policy, in which the insurer will pay the insured the cash value the policy has built up. |
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Term
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Definition
| Insurance that provides protection for a specified period of time. |
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Term
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Definition
| The third in line to receive the benefits of an insurance policy. |
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Term
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Definition
| A condition which does not allow a person to perform the duties of any occupation for payment as a result of an injury or sickness. |
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Term
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Definition
| A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse,or switch policies, even when it;s to the insured's disadvantage. |
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Term
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Definition
| A person who evaluates and classifies risks to accept or reject them on behalf of the insurer. |
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Term
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Definition
| The process of reviewing, accepting or rejecting applications for insurance. |
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Term
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Definition
| The portion of premium for which policy protection has not yet been given. |
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Term
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Definition
| A contract that legally binds only one party to contractual obligations after the premium is paid. |
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Term
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Definition
| A combination of flexible premium and adjustable life insurance. |
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Term
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Definition
| The fair and equal bargaining by both parties in forming the contract where the applicant must make full disclosure of risk to the company, and the insurance company must be fair in underwriting the risk. |
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Term
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Definition
| A contract that pays a stated amount in th event of a loss (disability insurance/ life insurance) |
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Term
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Definition
| The time between the beginning of a disability and the start of disability insurance benefits. |
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Term
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Definition
| the voluntary abandonment of a known or legal right or advantage. |
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Term
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Definition
| A disability rider, found in the Universal Life Insurance that waives the cost of the insurance but does not waive the cost of the premiums necessary to accumulate cash values. |
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Term
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Definition
| Continuation of life insurance coverage if the insured becomes totally disabled and is unable to pay the premiums. |
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Term
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Definition
| A material stipulation in the policythat if breached may void coverage. |
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Term
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Definition
| Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever it may be. |
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