Term
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Definition
| Companies are owned by the policyholders; pay dividends if there is a divisible surplus |
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Term
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Definition
| insure other insurers; insure a portion of the risk. |
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Term
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Definition
| inside the state it was incorporated in |
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Term
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Definition
| out of the state it was incorporated in |
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Term
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Definition
| incorporated in a country other than the US |
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Term
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Definition
| provides protection for a specified period (term) and pays a benefit only if the insured dies during the period |
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Term
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Definition
| protection declines year to year; for mortgage |
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Term
| Guaranteed Renewable policy (renewable term) |
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Definition
| allows policy owner to review the term policy before its termination date without having to provide evidence of insurability |
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Term
| (Convertible Term) Option to Convert |
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Definition
| gives the insured the right to convert or exchange the term policy for a whole life plan without evidence of insurability |
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Term
| Straight or Ordinary Life |
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Definition
premiums paid whole life
1. Covers till death or age 100
2. Includes Cash Value
3. matures at age 100 |
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Term
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Definition
have level premiums that are limited to a certain period of (less than life)
*20 pay life
*paid up at 65 |
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Term
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Definition
| convers 2 or more people, pays death benefit when first insured dies. |
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Term
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Definition
| last survivor policy (second to die): benefit is paid upon death of the last surviving insured |
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Term
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Definition
flexible
*combines term and permanent insurance into one plan
* policy owner chooses 2/3 of:
Type of policy
Face amount (DB)
Premium |
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Term
| Minimum age for life insurance |
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Definition
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Term
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Definition
most flexible
2 components- insurance and cash amount
2 things that are flexible- premium and DB
2 DB options
2 interest rate options-minimum guaranteed or current rate is set by company |
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Term
| Option 1/A (level)- decreasing term insurance+ increasing cash value; corridor added at end |
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Definition
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Term
| Option 2/B-(increasing) level term Insurance (ART) + increasing cash values; very expensive |
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Definition
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Term
| Entire contract provision |
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Definition
| RAP; found at the beginning of a policy, States that the policy document , the application and any attached riders constitute the entire contract (No outside documents allowed) |
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Term
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Definition
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Term
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Definition
| right to return policy for full premium within a specific period of time - 14 days |
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Term
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Definition
| If insured dies premium has not been paid, the policy benefit is payable (-premium amount due) |
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Term
| What is required to reinstate a lapsed policy |
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Definition
only 3 years passed
based on original age
back premiums paid
interest on past-due premiums
outstanding loans paid
prove insurability |
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Term
| When will policy loan be deducted from the death benefit paid to the beneficiary |
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Definition
| if outstanding at time of death |
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Term
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Definition
| contest the validity of the policy- 2 years from the policy issue date |
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Term
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Definition
known as assignment
policy owner transfer in writing |
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Term
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Definition
| permanent transfer rights |
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Term
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Definition
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Term
| Accelerated Benefits Provision |
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Definition
| early payment of some portion of the policy face amount fi insured terminally ill or injured |
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Term
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Definition
| 2 years company will pay the entire proceeds, as if death was a natural cause( if during 2 year period premiums will be refunded) |
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Term
| Misstatement of Age Sex Provision |
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Definition
Company reserves the right to make an adjustment at any time
* Change face amount and/or premium |
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Term
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Definition
Purpose is so that the policy does not lapse and coverage continues.
* comes from cash value |
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Term
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Definition
*War
*Aviation
*Hazardous occupation/Hobbies
*Commission of a felony
*Suicide (2yrs) |
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Term
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Definition
REC-(Policy owner does not have to give up the right to cash value)
Reduced paid up- Extended Term-Cash |
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Term
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Definition
| Cash Value used for a single-premium whole life policy with a lower face value |
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Term
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Definition
| Cash Value used to purchase a term policy equal to the original policies Face Value |
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Term
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Definition
| . A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield. |
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Term
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Definition
Cash
Reduce Premiums
Accumulate with interest
Paid-up additions
Once-Year term |
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