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| The amount stated on the face of the policy that will be paid upon the death of the insured. It does not include additional
amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends. |
| The first page of a life insurance policy. It includes basic information such as the policy number, type of policy, amount of
insurance and premium amount, as well as the name of the insured, the owner and the beneficiary. |
| A contractual provision that allows the insurer, under stated conditions, to pay insurance benefits of up to $1,000 to a
person or persons other than the insured, the designated beneficiary, or the insured's estate. |
| An individual reinsurance negotiated and placed individually. |
| A reinsurance term for a contract where the reinsured can select which risks he cedes to the reinsurer, but where the
reinsurer is obliged to accept all cessions made. |
| The premium level that is just sufficient to fund an insurer's expected costs and provide insurance company owners with a
fair return on their invested capital. |
| A combination of decreasing term and ordinary life insurance that, in the event of the insured's death within a specified
period such as twenty years, pays a monthly income of $10 per $1000 of ordinary life face amount for the remainder of the specified period, and the face
amount of ordinary life at the end of this period. |
| A life insurance policy providing coverage on all or several family members in one contract. The primary breadwinner's
coverage is typically Whole Life insurance, with the spouse and children, including those born after the policy is issued, insured with smaller amounts of
Term Insurance. |
| Interest rate charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to
meet reserve requirements. Set by the Federal Reserve Board, this is a heavily watched and key indicator of whether interest rates rise or fall. |
| FOMC has 12 members responsible for interest rate and credit policies of the Federal Reserve System. Also referred to as the
Fed. |
| Bond that protects an employer against dishonest or fraudulent acts of employees, such as embezzlement, fraud, or theft of
money. |
| A person who holds something in trust for another. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for fifteen years. |
| Immediate expenses incurred at the time of a person's death. These include funeral costs, court expenses associated with
probating his or her will, current bills or debt, and taxes. |
| A Term Life insurance policy with a level death benefit where the premium remains the same for five years. |
| Life insurance settlement option in which the policy proceeds are paid out in fixed amounts. |
| Annuity whose periodic payment is a guaranteed fixed amount. |
| Fixed expenses are those not directly related to a policy (for example: a premium tax or the payment of a commission
associated with the sale of a policy). Includes: advertising, accounting, planning, rent, computer facilities, etc. These expenses must be allocated to
each "block" of policies sold; the distribution is discretionary and can be critical. |
| Refers to an investment that pays a fixed rate or percentage of return. |
| Life insurance settlement option in which the policy proceeds are paid out in fixed amounts. |
| A type of schedule in group insurance under which everyone is insured for the same benefits regardless of salary, position,
or other circumstances. |
| A life accident policy or annuity under which the policy holder or contract holder may vary the amounts or timing of premium
payments. |
| A life insurance policy that combines the premium flexibility feature of universal life insurance with the equity-based
benefit feature of variable life insurance. |
| An insurer is a foreign company in any state other than the one in which it is incorporated. |
| Unforeseen and unexpected loss that occurs as a result of chance. |
| Insurance under individual contracts issued to the employees of a common employer or the members of an association under an
arrangement by which the employer or association agrees to collect the premiums and remit them to the insurer. The insurer usually agrees to waive its
right to discontinue or modify any individual policy, unless its simultaneously discontinues or modifies all other policies in the same group. |
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Insurance provided by fraternal orders or societies to their members, special group of people, namely, members of a lodge or a
fraternal order. Such insurance may be written on an assessment basis or on a legal reserve basis. |
| Life insurance provided by fraternal orders or societies to their members. |
| A social organization that provides insurance for its members. |
| A provision required in most states whereby policy owners have a period of time usually, 10, 20 or 30 days, depending on the
state to examine their newly issued policy, and return it for a full refund of premium if not satisfied for any reason. |
| Refers to the sales charge imposed on investors entering certain mutual funds that have sales charge or load. Front end loads
are capped at 8.5% by regulators. |
| A domestic insurance company that provides claims or administrative services to a captive. |
| Fund overlap refers to the duplication in owning two or more funds that have the same identical securities and/or underlying
investment strategy. Investors are effectively paying twice for double work. They pay one fund company to execute xyz strategy, and then they pay a
competing fund or fund company again to do the exact same work. |
| Expenses incurred for a funeral and burial. These can include casket, vault, grave plot, headstone and funeral director. |
| A provision found in some insurance policies that allows the insured to purchase additional disability income insurance at
specified future dates regardless of the insured's physical condition. |
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