|
| |
 |
| |
|
|
| |
|
|
| |
|
|
| The discontinuance of an insurance policy before its normal expiration date, either by the insured or the company. |
| The amount of capital available to an insurance company or to the industry as a whole for underwriting general insurance
coverage or coverage for specific perils. |
| A method used to estimate the amount of life insurance to own. Under this method, the insurance proceeds are retained and are
not liquidated. |
| Represents the excess of a company's assets over its liabilities as reported in its financial statements. Stock companies
have capital stock and surplus. Capital stock represents funds paid into the company by stockholders. Surplus represents the remaining excess of assets
over liabilities. Mutual companies only have surplus since there are no stockholders in a mutual company. |
| Representative of a single insurer or fleet of insurers, who is obliged to submit business only to that company, or at the
very minimum, give that company first refusal rights on a sale. In exchange, that insurer usually provides its captive agents with an allowance for office
expenses as well as an extensive range of employee benefits such as pensions, life insurance, health insurance and credit unions. |
| The underwriting insurance company. |
| A security that can be readily converted into cash (e.g. Treasury bill or money market fund). |
| The amount that is available in cash for loans and that may be available for withdrawals. Accessing Cash Surrender Value may
reduce the death benefit and may increase the risk of lapse. Please note that the cash value only pertains to permanent life insurance and not term life
insurance. |
| A life insurance policy which in addition to providing a benefit upon the death of the policy holder, also accumulates cash
value over time enabling benefits to be paid out before death. |
| A sales charge deducted from an investment for exiting early, or before the sales charge ceases to exist. Mutual fund class B
and C shares often carry a deferred sales charge. Also called back end load, CDSC or contingent deferred sales charge. |
| To transfer risk from a direct insurer to his reinsurer. |
| One who cedes a risk to his re insurers or retrocessionaries. |
| A debt instrument that is issued and insured by a bank. Interest payments are made to the depositor and CD maturities range
from a few weeks to several years. |
| Amount of the insurance ceded to a reinsurer by the original insuring company in a reinsurance operation. |
| A form provided by the insurer that the policyowner must complete in order to change the beneficiary on a policy. |
| An individual who has attained a high degree of technical competency in the fields of life and health insurance and who is
expected to abide by a code of ethics. Must have minimum of three years of experience in life or health insurance sales and have passed ten professional
examinations administered by The American College. |
| Rider which provides insurance to the insured's child(ren). |
| A request for payment of a loss which may come under the terms of an insurance contract. |
| A first or third party who asserts right of recovery. |
| A clause in a policy which provides for prompt notification of claims and commonly designates a specific adjuster to receive
notice and deal with the claim. |
| Refers to the price of the last trade of a security at the end of the market day. Close is also used in reference to the last
half hour of trading sessions on the major exchanges. |
| Investment companies that issue a fixed number of shares, which trade on a stock exchange. |
| An actively managed fund that closely mimics the volatility and performance of a respective index. |
| A temporary transfer of some, but not all, policy rights to a lender to provide security for a loan. |
| A measure of the dollars spent for claims and expenses and premium dollars taken in. The total of two separate ratios: (1)
incurred loss ratio, the ratio of losses incurred expressed as a percentage of the net Earned Premium, and (2) expense ratio, the ratio of expenses
incurred expressed as a percentage of the net Earned Premium. Attention: in some cases the denominator of the expense ratio is expressed as a percentage
of the written premium. In addition the allocation of some components as loss adjustment expenses and management costs is not always clear. |
| Transaction fee paid to a broker for executing a securities trade. Commission amounts vary and are often dependent on the
size of trade, the frequency of trades, and sometimes the size of the brokerage account. Discount brokers tend to charge lower commissions for trades
versus full service brokers. |
| A state officer who administers the state's insurance laws and regulations. In some states, this regulator is called the
director or superintendent of insurance. |
| Units of ownership in a corporation. |
| Interest earned on a principal sum plus interest earned from an earlier time period. Compound interest can happen daily,
quarterly, annually, or on another basis. |
| Deliberate failure of an applicant for insurance to reveal a material fact to the insurer. |
|
A receipt given for premium payments accompanying an application for insurance. If the application is approved as applied for, the
coverage is effective as of the date of the prepayment or the date on which the last of the underwriting requirements, such as a medical examination, has
been fulfilled. |
| The attempt by the insurer to prevent the lapse of a policy. |
| One of the elements for a binding contract. Consideration is acceptance by the insurance company of the payment of the
premium and the statement made by the prospective policy holder in the application. |
| A court action challenging the validity of a policy. |
| The person to succeed as owner of a life insurance policy if the original owner dies. |
| A binding agreement between two or more parties for the doing or not doing of certain things. A contract of insurance is
embodied in a written document called the policy. |
| The portion of civil law that interprets written agreements between parties and resolves disputes between them. |
| The person(s) or entity who purchases the annuity and has all rights to the contract. In a variable deferred annuity, like
Preference Plus Select for example, this person can make investment decisions, transfer money among funding options, make withdrawals, and name the
annuitant (usually the contract owner) and the beneficiary. |
| The principle under which divisible surplus is distributed among policies in the same proportion as the policies are
considered to have contributed to that surplus. |
| A privilege granted in an insurance policy to convert to a different plan of insurance without providing evidence of
insurability. |
|
Term insurance which can be exchanged, at the option of the policy holder and without evidence of insurability, for another plan of
insurance. Also known as credit life insurance. The premium rate for the permanent policy is normally based on the age of the insured at the time of the
conversion. |
| An amount attributed to an asset for income tax purposes; used to determine gain or loss on a life insurance contract to
determine the value of a gift. |
| All costs related to pure risk which include, from the perspective of shareholders, retained risk, loss prevention costs and
insurance costs. |
| Benefit that can be added to a life insurance policy under which the policy owner can purchase one-year term insurance equal
to the percentage change in the consumer price index with no evidence of insurability. |
| The scope of protection provided under a contract of insurance; any of several risks covered by a policy. |
| The risk that a creditor or bond issuer will not pay the interest and/or principal owed when it is due. |
| Obligates an insurer to protect each insured separately. |
| Specifies the terms for the surviving partners or shareholders to buy a deceased's share of the business's ownership. |
| The total amount paid over the course of a specified amount of years. |
| Nonparticipating whole life policy in which the cash values are based on the insurer's current mortality, investment, and
expense experience. An accumulation account is credited with a current interest rate that changes over time. Also called interest-sensitive whole life
insurance. |
| Non-guaranteed premiums at the time of re-entry; applicable to certain term life insurance policies. |
| Customer service representatives support the work of insurance agents with a variety of tasks that must be done within a
company or agency to deliver services to and handle requests from clients. |
| An endorsement to an insurance contract stating that reinsurance proceeds will be paid directly to the named payee in the
event of an insurer's insolvency. |
|
| |
|
|
| |
| |
|
