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| Insurance on which all required premiums have been paid. The term is frequently used to mean the reduced paid-up insurance
available as a non-forfeiture option. |
| Physical examination of an applicant by a trained person other than a physician. |
| Insurance issued by an insurance company providing participation in dividend distribution. |
| A life insurance policy under which the company agrees to distribute to policy holders the part of its surplus which its
Board of Directors determines is not needed at the end of the business year. Such a distribution serves to reduce the premium, and it reflects the
difference between the premium charged and the cost to the company of providing the insurance. |
| The person making premium payments on a policy. |
| Pegging is a practical smoothing device used to arbitrarily increase the actual dividend (s) paid on a new lower dividend
scale to eliminate a temporary reduction in the actual dividends paid from year to year on a policy. Usually only base policy dividends are pegged;
dividends on riders and Paid Up Additions (PUA) are not. See: Substitution. |
| (1) By head or by individual; (2) to share equally. |
| The cause of a loss insured against in a policy. |
| Type of life insurance other than term insurance which accrues cash value and is designed for long-term, or permanent, needs
of a policy holder. Includes universal and variable life, among others. |
| The degree to which policies stay in force through the continued payment of renewal premiums. |
| An enhancement to the policy's benefits, usually in the form of additional interest credits and/or reduced charges, for
policies that remain in force for a certain period. The bonus may or may not be guaranteed in the contract. |
| A person appointed through the will of a deceased or by a court to settle the estate of one who dies. |
| Refers to the individual or company responsible for sponsoring 401(k) and other retirement benefits for the employees. |
| The legal document issued by the company to the policy holder, which outlines the conditions and terms of the insurance; also
called the policy contract or the contract. |
| A refund of part of the premium on a participating life insurance policy reflecting the difference between the premium
charged and actual experience. |
| Fee added to the periodic premium payments to cover undefined policy costs. |
| The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the
insured, a partnership or a corporation. |
| Sum left after liabilities are deducted from assets. Sums such as paid-in capital and special voluntary reserves are also
included in this term. This surplus is an additional financial protection to policy holders in the event a company suffers unexpected or catastrophic
losses. The financial base that permits a company to sell insurance. |
| The maximum amount a policy will pay, either overall or under a particular coverage. |
| A non-recourse loan from the insurer to the policyowner secured by the policy's cash value. |
| The individual who owns an insurance policy and who has all contractual rights. The policyowner is not necessarily the same
person as the insured or the payor. |
| The measure of the funds that a life insurance company holds specifically for fulfillment of its policy obligations. |
| That period for which an insurance policy provides coverage. |
| A method of distributing insurance risk, whereby, the individual participants share overall risk with the other participants.
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| An agreement to divide any losses that might occur equally among two or more people, typically with each paying the average
loss. |
| A physical and/or mental condition of an insured which first manifested itself prior to the issuance of his/her policy or
which existed prior to issuance and for which treatment was received. |
| The best premium rate classes for unimpaired, non-smoking applicants that are in better than average health. |
| The amount paid to an insurer or reinsurer in consideration of his acceptance of a risk. |
| Periodic Payment discount given by a company. |
| A policy holder contracts with a lender to pay the insurance premium on his/her behalf. The policy holder agrees to repay the
lender for the cost of the premium, plus interest and fees. |
| A policy loan made for the purpose of paying premiums. |
| A tax, imposed by each state, on the premium income of insurers doing business in the state. |
| Refers to a method that applies an assumed rate of interest to compute today's value for a future payment. |
| The elements used in pricing a policy, principally investment earnings, mortality and expenses. If actual experience is
better than the assumptions made in determining the policy guarantees, the difference after reflecting surplus needs is available for distribution to
policy holders through the company's dividend scale or other non-guaranteed pricing structure. |
| The person who, upon the insured's death, has the first right to receive insurance proceeds. |
| Insurance that pays compensation for a loss ahead of any other insurance coverages the policy holder may have. |
| One for whom an agent acts, especially as to contractual dealings with third persons. |
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The amount payable in one sum in the event of accidental death and in, some cases, accidental dismemberment. When a contract provides
benefits for both accidental death and accidental dismemberment, each dismemberment benefit is an amount equal to the principal sum. |
| (1) The right to be let alone; (2) in insurance contexts, the right to fair personal information practices. Probate: The
court-supervised process of validating or establishing a distribution for assets of a deceased including the payment of outstanding obligations. |
| The amount payable under the terms of a life insurance policy upon the insured's death or upon the maturity of an endowment.
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| A term applied to an agent, solicitor or other person who sells insurance. |
| A commission payable on the profit generated under an insurance or reinsurance contract as an encouragement to maintain the
flow of profitable business. |
| Policy payment that is currently being charged by the company after the guarantee period. |
| A type of reinsurance where the ceding insurer cedes to its reinsurer a predetermined proportion of the liability and premium
of those policies subject to the reinsurance agreement. |
| The person named in a life insurance application as the person whose life is to be covered by the insurance, if the
application is approved. |
| A legal document that explains the risks of investing in a particular mutual fund or exchange traded fund. The prospectus
will usually discuss performance history, fees, risks, and experience of the portfolio managers. All investment company products are required by law to be
accompanied by a prospectus. |
| A statement or clause, found in an insurance policy, to establish some term of the contract. |
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The active efficient cause which sets in motion a chain of events which brings about a result without the intervention of any new
cause working actively from a fresh or independent source. Proximate cause is not necessarily the closest in time to the result. |
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