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| The pricing factor upon which the insurance buyer's premium is based. |
| Term Life insurance death benefit thresholds, whereby, the rate per thousand decreases as the amount of death benefit
increases similar to a quantity discount. |
| Price per unit (or $1,000) of death benefit. Term premiums are calculated by multiplying the rates per thousand of death
benefit, then adding the Policy Fee. |
| Sometimes called an "extra-risk" policy, an insurance policy issued at a higher-than-standard premium rate to cover the extra
risk where, for example, an insured has impaired health or a hazardous occupation. |
| A geographical grouping in which like hazards tend to equalize and permit the establishment of an equitable rate for the
territory. |
| A policy provision under which the insured, at the end of the specified term period, can renew (re-enter) the policy at a
rate based on their attained age for another term period. Re-entry requires the insured to provide evidence of insurability. Also referred to as
Re-Qualification. |
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The granting of any form of inducement, favor, kickback or advantage to the purchaser of a policy, which is not available under the
standard terms of the policy. Rebating is a penal offense in some states, whereby both the agent and the person accepting the rebate can be punished. |
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The period after the grace period (usually five years) during which the policy can be restored from a lapsed status through
submission of acceptable evidence of insurability and unpaid premiums plus interest. The insurance company has the right to decline to reinstate a lapsed
policy if the former insured has developed health or other problems. |
| To continue the policy for another period of time. |
| Term insurance which can be renewed at the end of the term, at the option of the policyholder and without evidence of
insurability, for a limited number of successive terms. The rates increase at each renewal as the age of the insured increases. |
| Continuance of coverage under a policy beyond its original term by the insurer's acceptance of the premium for a new policy
term. |
| The act of terminating a policy with one insurer for a new policy with another insurer. This practice is regulated by most
states because often it is not in the insured's best interest to make such a switch. |
| A state-specific form that must be completed if the applicant is replacing existing coverage. The replacement form notifies
the existing insurer that the applicant is replacing their policy with a policy from another company. |
| The percentage of income before retirement that is required to be replaced to maintain the same standard of living after
retirement. |
| An agent or sales representative. |
| The amount of money an insurance company holds which, with future premiums and an assumed rate of interest, will pay all
contractual obligations as they fall due. |
| An agent domiciled in the state in which he or she writes insurance. |
| Factors affecting what actions can be taken on a policy, such as ownership restriction because of a divorce or tax levy. |
| The maximum amount of insurance an insurer can retain before ceding business to a reinsurer. The maximum amount may depend on
the insured's age, health, coverage in force, as well as the insurance company's financial condition. |
| A beneficiary whose rights are subject to the rights of the policyowner who may revoke or change the beneficiary designation
and exercise any ownership rights under the policy without the beneficiary's consent. |
| A special provision attached to a policy that expands or restricts the benefits otherwise payable or excludes certain
conditions from coverage.. |
| In life insurance, it is the probability of mortality. |
| An underwriting process used to determine the appropriate price category or Premium Rate Class of the proposed insured,
according to risk factors associated with that person's health condition, occupation, lifestyle, etc. |
| The tax-free transfer of accumulated assets from a qualified retirement plan to an IRA, which must be completed within 60
days of the termination of the original plan. |
| A retirement plan that offers no upfront deductions for contributions but instead offers income tax free withdrawals for
owners and beneficiaries if certain provisions are met. |
| A popular benchmark and small cap index constructed of 2000 small companies. |
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